In the UAE, who requires an ICV certificate?

The In-Country Value (ICV) program, initiated by the UAE government, has become a cornerstone for businesses aiming to align with the nation’s economic development goals. An ICV certificate is not just a document but a key requirement for companies looking to enhance their competitiveness in government and semi-government contracts.

In this blog, we’ll explore who needs an ICV certificate, its importance, and how businesses can benefit from obtaining it.

What Is the ICV Certificate?

The ICV certificate is a formal document issued by certifying bodies authorized by the UAE Ministry of Industry and Advanced Technology (MoIAT). It evaluates a company’s contribution to the local economy based on parameters such as local procurement, Emiratisation, investments, and export activities.

The program incentivizes companies to prioritize local suppliers, hire Emirati talent, and invest in the UAE’s economy, fostering sustainable growth.

Who Needs an ICV Certificate?

The ICV certificate is essential for businesses that:

1. Supply Goods or Services to Government Entities

Companies bidding for contracts with government bodies like ADNOC, Etisalat, and Mubadala are required to present a valid ICV certificate. These entities prioritize businesses with higher ICV scores, making the certificate a competitive advantage.

2. Work with Semi-Government and Large Corporations

Many semi-government organizations and large private corporations in the UAE have adopted the ICV program to evaluate suppliers. If your business provides goods or services to such entities, obtaining an ICV certificate is crucial.

3. Aim to Participate in Tenders

Businesses looking to participate in tenders floated by government or semi-government organizations must have a valid ICV certificate. It serves as a critical evaluation factor in awarding contracts.

4. Align with UAE Economic Goals

Companies committed to supporting the UAE’s vision for economic diversification and sustainable growth benefit from obtaining an ICV certificate. It demonstrates alignment with national priorities and boosts business credibility.

Industries That Commonly Require an ICV Certificate

While the ICV program applies to all sectors, certain industries are more likely to require the certificate due to their close ties with government projects:

1. Oil and Gas

Companies supplying goods or services to ADNOC or other energy sector entities need an ICV certificate to qualify for contracts.

2. Construction and Infrastructure

Firms involved in large-scale construction or infrastructure projects with government backing must present an ICV certificate.

3. Manufacturing

Manufacturers supplying locally produced goods to government or semi-government entities benefit significantly from the ICV program.

4. IT and Telecommunications

Suppliers to entities like Etisalat and DU are often required to have an ICV certificate to demonstrate their local contributions.

Why Is the ICV Certificate Important?

1. Competitive Edge in Tenders

Businesses with higher ICV scores have a better chance of securing contracts, as government entities prioritize local contributions.

2. Enhanced Credibility

An ICV certificate showcases a company’s commitment to the UAE’s economic growth, boosting its reputation among clients and stakeholders.

3. Access to Lucrative Opportunities

With an ICV certificate, businesses can access a wider range of tenders and projects, increasing revenue potential.

4. Support for National Goals

By aligning with the ICV program, businesses contribute to the UAE’s objectives of economic diversification, Emiratisation, and local industrial growth.

How to Obtain an ICV Certificate

To obtain an ICV certificate, businesses must follow these steps:

1. Prepare Audited Financial Statements

Ensure your financial statements for the most recent fiscal year are audited and compliant with UAE regulations.

2. Engage With an Approved Certifying Body

Submit your financial data to a certifying body authorized by MoIAT for ICV score calculation.

3. Receive the Certificate

Once verified, the certifying body issues the ICV certificate, valid for 14 months.

Who Doesn’t Need an ICV Certificate?

While the ICV program is beneficial for many businesses, not all companies require certification. For instance:

• Small Businesses: Companies not engaged in government or semi-government contracts may not need an ICV certificate.

• Businesses Without Local Operations: Firms that do not contribute significantly to the UAE economy might not benefit from obtaining the certificate.

How AbstractICV Can Help

At AbstractICV, we specialize in helping businesses navigate the ICV certification process. Our team of experts ensures that your financial data is accurately prepared, maximizing your ICV score and enhancing your eligibility for contracts.

Our Services Include:

• Assistance with financial audits

• Guidance on improving ICV parameters

• Streamlined certification and renewal processes

Conclusion

An ICV certificate is essential for businesses aiming to thrive in the UAE’s competitive market, particularly those working with government and semi-government entities. By understanding who needs an ICV certificate and its importance, companies can align with the UAE’s economic goals and unlock new opportunities for growth.