Steps, Advantages, and Effects of Obtaining an ICV Certificate in the United Arab Emirates

The In-Country Value (ICV) Certificate is a crucial document for businesses operating in the UAE, especially those looking to secure government and semi-government contracts. It is part of the UAE’s strategy to boost the local economy by encouraging businesses to contribute to national economic growth. In this article, we will explore the steps to obtain an ICV certificate, its advantages, and the effects it has on businesses and the broader economy.4

Steps to Obtain an ICV Certificate

1. Assess Eligibility

Before applying, businesses should determine whether they are eligible for the ICV certification. Companies operating in industries such as manufacturing, services, and construction can apply.

2. Prepare Financial Statements

Applicants must have audited financial statements that comply with International Financial Reporting Standards (IFRS). These statements should be no older than two years from the date of submission.

3. Engage with a Certifying Body

The UAE has authorized independent certifying bodies to issue ICV certificates. Companies must select one from the approved list to conduct their assessment.

4. Submit Necessary Documentation

Businesses need to provide relevant financial and operational data, including:

• Revenue generated within the UAE

• Local supplier expenses

• Emiratization efforts (employment of UAE nationals)

• Investments in local assets and infrastructure

5. Undergo Evaluation and Certification

The certifying body reviews the submitted documents and calculates the company’s ICV score. This score reflects the percentage of a company’s economic contribution within the UAE. Once approved, the company receives its ICV certificate, which is valid for 14 months.

Advantages of Obtaining an ICV Certificate

1. Access to Government and Semi-Government Contracts

Companies with a high ICV score have a competitive advantage in securing contracts with entities such as ADNOC, Etisalat, and other government-linked organizations.

2. Increased Business Opportunities

An ICV certificate enhances a company’s credibility, making it a preferred choice for partnerships and subcontracting opportunities within the UAE.

3. Competitive Edge in the Market

With the UAE government prioritizing local economic growth, businesses with an ICV certificate gain an edge over competitors who do not comply with the program.

4. Contribution to National Economic Growth

By investing in local resources, hiring UAE nationals, and sourcing from local suppliers, businesses help strengthen the UAE’s economy, aligning with the government’s vision for sustainable development.

5. Enhanced Reputation and Compliance

Being ICV-certified demonstrates a company’s commitment to local economic contribution and compliance with government regulations, boosting its reputation in the industry.

Effects of the ICV Certification Program

1. Growth of Local Industries

The ICV program promotes local procurement, leading to the expansion of domestic industries and a reduction in reliance on imports.

2. Job Creation for UAE Nationals

A key component of the ICV program is Emiratization, which encourages businesses to hire and train UAE nationals, helping to develop a skilled local workforce.

3. Increased Foreign Direct Investment (FDI)

The program fosters a stable business environment, making the UAE an attractive destination for investors looking to contribute to the local economy.

4. Strengthened Supply Chain Resilience

With more businesses sourcing materials and services locally, supply chains become more robust and less vulnerable to external disruptions.

5. Alignment with the UAE’s Economic Vision

The ICV program aligns with the UAE’s long-term goals, such as the UAE Centennial 2071 and Vision 2030, which focus on economic diversification and sustainable development.

Conclusion

Obtaining an ICV Certificate in the UAE is an essential step for businesses aiming to expand their opportunities and contribute to the country’s economic progress. By following the certification process, companies can gain access to lucrative contracts, improve their market position, and play a vital role in the UAE’s vision for economic sustainability. With its significant advantages and long-term effects, the ICV program continues to be a driving force in shaping the UAE’s business landscape.