Why ICV Audit UAE Is Important and How to Do It Correctly

Why ICV Audit UAE Is Important and How to Do It Correctly

What Is an ICV Audit?

The In-Country Value (ICV) program was introduced by the UAE government to boost local economic contribution by encouraging companies to increase their investment and employment within the country. An ICV Audit verifies a company’s ICV score, which reflects how much value a business adds to the UAE economy through local spending, hiring, and sourcing.

The ICV certification is now a mandatory requirement for suppliers looking to work with major entities like ADNOC, Aldar, and other participating government bodies.

Why Is ICV Audit Important in the UAE?

1. Access to Government Contracts
   An approved ICV certificate is essential for businesses that want to bid for contracts with government and semi-government entities.

    

2. Enhanced Market Competitiveness
   Companies with a higher ICV score stand out in competitive tenders. A good ICV score can be a tie-breaker in procurement decisions.

    

3. Supports National Goals
   The program aligns with the UAE Vision 2030 by encouraging localization, increasing Emirati employment, and supporting local suppliers and industries.

    

4. Improved Business Reputation
   Demonstrating commitment to the UAE’s economic growth builds credibility with clients, stakeholders, and regulatory bodies.

    

Who Needs an ICV Certificate?

• Suppliers to government and semi-government entities

   

• Companies looking to register with ADNOC

   

• Businesses across sectors such as oil & gas, construction, manufacturing, and services

   

Even if you’re not currently working with these entities, having an ICV certificate opens doors to new business opportunities.

How to Do the ICV Audit Correctly

1. Choose an Approved ICV Certifying Body
   Only empaneled and ADNOC-authorized audit firms can issue valid ICV certificates. Work with a licensed and experienced provider to ensure accuracy.

    

2. Prepare Your Financials
   The audit is based on your most recent audited financial statements (not older than 2 years). Ensure these are prepared as per IFRS standards.

    

3. Gather Relevant Documentation
   Be ready to submit payroll records, Emiratization data, supplier invoices, and investment proofs. Transparency is key.

    

4. Understand the ICV Formula
   The score includes factors like:

    

   • Goods and services procured locally

      

   • Local investments

      

   • Emirati workforce and training

      

   • Revenue retained in the UAE

      

5. Request Pre-Audit Advisory (Optional but Recommended)
   A pre-audit session can help identify gaps and improve your ICV score before final submission.

    

6. Submit for Audit and Certification
   Once all documents are in place, your certifying body will evaluate, calculate the score, and issue your ICV certificate (valid for 14 months).

    

Common Mistakes to Avoid

• Submitting outdated financial statements

   

• Incomplete supporting documents

   

• Overstated claims with no proof

   

• Choosing unauthorized audit firms

   

Getting it right the first time saves time, money, and reputational risk.

Final Thoughts

In a rapidly evolving business environment, complying with the ICV program isn’t just a regulatory box to tick—it’s a strategic advantage. By getting your ICV audit done correctly, you not only meet government requirements but also position your business for long-term success in the UAE market.