What is ICV certification
(In-Country Value) ICV certification is a strategic initiative in Abu Dhabi, evaluating and certifying companies on their dedication to advancing economic development. It assesses criteria like local investment, job creation, Emiratization efforts, and sourcing goods and services locally. The objective is to encourage businesses to make substantial contributions to the local economy, fostering sustainable growth and diversification. This certification enhances market positions for companies and aligns with the broader economic goals of the region.
From January 2018, the Abu Dhabi National Oil Company (ADNOC) initiated the In-Country Value (ICV) program as a strategic effort to diversify the UAE’s economy. The primary objectives of the ICV program include the localization of goods and services, the creation of employment opportunities for UAE nationals in the private sector, and the localization of critical functions within the oil and gas industry.
Following the implementation of the ICV program, ADNOC’s suppliers and service providers are now required to demonstrate a significant increase in their ICV score. This is achieved by declaring their ICV achievement certificate in comparison to the previous financial year. The ICV score has become an integral component of ADNOC’s tendering process, where the awarding criteria are based on both the lowest price and a high ICV score.
All ADNOC suppliers are mandated to engage with an ADNOC-certified auditor or audit firm to obtain the ICV certificate. The ICV certificate can only be acquired through an ICV-approved auditor or audit firm in the UAE. The ICV auditor or audit firm will issue the ICV certificate based on the audit report of an entity, which must be conducted by an approved external auditor or audit firm sanctioned by the government of the UAE. This requirement ensures that the ICV certification process is standardized and aligns with the government’s regulations.
The ICV Certificate stands as a pivotal asset for companies navigating the competitive realm of Adnoc Group tenders, serving as both a testament to their dedication to innovation and a strategic advantage in the bidding process. It not only grants certified companies the coveted first right of refusal but also assigns them a tangible ICV score, positioning them favorably in bid evaluations. Rooted in the bedrock of International Financial Reporting Standards, the certification process scrutinizes companies’ financial statements, ensuring a comprehensive assessment that extends two years beyond the certification year. While the certification treats each entity within a group as an independent legal entity, there exists a harmonious provision for companies with branches in the same emirate engaged in identical activities and boasting identical ownership structures, allowing for a consolidated ICV certificate. This thoughtful exception facilitates a streamlined certification process for companies, fostering an environment where shared commitment to innovation and capability development is duly acknowledged and rewarded.
Impact of implementing the ICV Program
Localization & Development: Strategic localization of supply chains and the development of new local industries and services.
Private sector: Increase the private sector’s contribution to national GDP
Research & Development: Enhance spending on R&D and advanced technology
National GDP Growth: Contributing to the growth of national GDP
Job Opportunities: Creating valuable job opportunities in the private sector
Foreign Investments: Stimulating and attracting foreign investments and diversifying the economy
ICV Score
The ICV (In-Country Value) score in the United Arab Emirates is a quantifiable measure that assesses a company’s contribution to the local economy. Calculated as a percentage, the score takes into account factors such as local spending, Emiratization efforts, investment in local facilities, training initiatives, and engagement in innovation activities. A higher ICV score indicates a stronger commitment to supporting the UAE’s economic development. This score is pivotal, often influencing a company’s eligibility for tenders and contracts with major entities in the country, where a higher ICV score enhances competitiveness and showcases a company’s dedication to fostering local economic growth.
How to Get UAE ICV Certification in Abu Dhabi
Start by registering on the official ICV portal and submitting required documents, including audited financial statements prepared according to International Financial Reporting Standards (IFRS). The assessment considers factors such as local spend, Emiratization efforts, and innovation activities. Successful completion results in the issuance of the ICV Certificate, reflecting the company’s commitment to the local economy. Use this certificate when participating in tenders, as it may provide a competitive advantage. Monitor certificate expiration for timely renewal, ensuring continued compliance with ICV requirements. For precise details, refer to the official ICV portal or contact relevant authorities in Abu Dhabi. Seeking professional advice can facilitate a smooth certification process.
Eligibility for ICV certification
To become eligible for ICV (In-Country Value) certification in the UAE, businesses must meet certain criteria that demonstrate their commitment to the country’s development. Being eligible involves being registered with the government, possessing a valid trade license, and maintaining a physical presence while actively conducting business in the UAE. Each industry has its specific ICV requirements, which take into account factors like local content, investment in local infrastructure, and the employment of locals. To attain certification, companies go through an audit by an authorized ICV body, assessing their performance against ICV score benchmarks. Overall, eligibility for ICV certification ensures that businesses are dedicated to contributing to the growth of the UAE and its local economy.
