The In-Country Value (ICV) program was first launched in 2017 for Abu Dhabi National Oil Company (ADNOC) Group Companies to achieve key goals such as Emiratization, GDP Diversification and Strategic considerations. In the subsequent years, different Government and semi-Government Companies joined the program to broaden the scope of the ICV certification process as a Unified ICV program for Suppliers across various sectors in Abu Dhabi and the UAE.
In the latter half of 2021, the Unified ICV program has been transformed into the National In-Country Value Program (ICV) by the Ministry of Industry and Advanced Technology (MoIAT) to enhance the performance of various sectors. The initiative aims to fulfil its goals by boosting the contribution of the local industries to the national GDP and promoting local companies. As part of the program, the Ministry Certifying Bodies will issue an ICV certificate to suppliers which evaluates their contribution to the local economy of the UAE. The certified suppliers get preference during the award of contracts and purchases based on their ICV score. ICV Certificates are used by the Participating entities in evaluating their tenders for procurement.
The key strategic partners of the national ICV certification program include government entities and national companies such as the Abu Dhabi Department of Economic Development (ADDED), Abu Dhabi National Oil Company (ADNOC) and Aldar Properties. Suppliers need to declare their ICV achievement or ICV certificate concerning the previous financial year. The ICV assessment should be certified by one of the Certifying Bodies on an annual basis. Consult with providers of ICV certification services in Dubai to leverage the National ICV program.
Key Objectives of the Program
The National ICV certification program has been envisioned to boost the growth of local industries by reducing the dependence on imports and launching other initiatives such as financing incentives. The ICV program aims to support the national industry and redirect amounts spent in procuring goods and services towards the national economy. The major objectives of the program are:
- Strategic supply chain localisation and development of new local industries & services
- Encouraging and attracting foreign investments, diversifying the economy, and boosting exports
- Generating private-sector job opportunities of great value
- Contributing to national GDP growth
- Boost the spending on R&D and advanced technology
- Boost the contribution of the private sector’s to the UAE GDP
Issuance of ICV Certification
Professional firms authorised by the MoIAT carry out the verification and issuance of the ICV Certificate. These professional firms are called Certifying Bodies, which provide ICV certification services in Dubai and across the UAE.
Companies that Require ICV Certification
Companies inside or outside the UAE are eligible to apply for an ICV Certification per the ICV guidelines. ICV certification is required for all companies that wish to apply to governmental and semi-governmental procurements. The ICV factor accounts for a certain weightage in tender evaluation. However, this is not a mandatory requirement.
The Tier 1 suppliers (suppliers directly providing goods or services to the Partners of the Program) may have to declare their ICV Score because it’s an essential part of their tender evaluation and award process. Suppliers belonging to the Tier 2 category and below also need to present their ICV Certificate to ensure competitiveness in their tenders with Tier 1 suppliers.
Key Metrics to Determine the ICV Score
The ICV score of a company reflects its value-add within the UAE economy. Moreover, the ICV score is represented as a percentage. Availing of ICV Certification services in Dubai can make things easier for the companies. The authorities determine the ICV score of companies based on the following parameters:
- Goods Manufactured
- Third-Party Spend
- Investment – Top-up
- Manpower – Emiratization
- Manpower – Expats
- Additional Bonus – Revenue from Outside UAE, Emirati Head Count & Investment Growth
Key Requirements to Obtain ICV Certification
The MoIAT has set out a series of requirements for suppliers to achieve the ICV certification. Suppliers who are confused about the process can seek to consult with providers of ICV certification services in Dubai. Here is a list of requirements to obtain an ICV certificate in the UAE:
- Suppliers should submit Audited Financial Statements prepared as per International Financial Reporting Standards (IFRS). The report should not be older than two years from the certifying year. Moreover, the report should be signed by a licensed auditor.
- The ICV certificate must be obtained separately for each legal entity of a company. However, companies having different branches in the same Emirate with the same activities and ownership can obtain a combined ICV certificate in the name of the company.
- If a company has manufacturing and commercial licenses, it should have a separate accounting record for manufacturing and commercial activities; The MoIAT certifying bodies will issue the ICV separately for each license.
- Newly established companies (less than 10 months old) and entities without audited financial statements can use Management Accounts for up to 9 months for the ICV certification process
- The figures entered in the ICV certificate must tally with the supplier’s latest audited financial statement
- The ICV certificate shall be valid for 14 months from the date of issuance of audited financial statements.
Choose the best ICV Certification Services in Dubai, UAE
The suppliers are required to fill a supplier submission template (ICV Certificate Sample) prescribed by the MoIAT for the submission to Certifying bodies. The ICV Certificate template must be filled in as per the latest financial audit statements. This is where ICV certification service providers in Dubai, such as Jitendra Chartered Accountants (JCA) come in handy for the companies. JCA is a leading provider of ICV certification services in Dubai, UAE.
JCA can simplify the Template submission guidelines for the companies that require ICV certification. We can help business owners to understand the factors that determine their company’s ICV score. JCA can also help the companies with preparing the audited financial statements as per the IFRS.
Find JCA UAE Audit, Leading Accounting Firms for ICV Certification in Dubai, for more information, Inquire us today.