15th July 2024
In recent years, the UAE has placed a significant emphasis on promoting local businesses and enhancing the country’s economic development. One of the key initiatives supporting this goal is the In-Country Value (ICV) program. The ICV certification is essential for businesses looking to participate in government and semi-government tenders and contracts. Here’s a comprehensive guide to understanding the ICV certification process.
What is the ICV Program?
The ICV program, launched by the Abu Dhabi National Oil Company (ADNOC) and adopted by various other UAE entities, aims to boost local content and contribute to the UAE’s economic growth. The program encourages businesses to:
Increase local procurement of goods and services.
Invest in the Emirati workforce.
Contribute to the local economy.
Why is ICV Certification Important?
ICV certification is crucial for companies aiming to participate in tenders from ADNOC, Abu Dhabi Ports, and other governmental entities. The ICV score plays a significant role in the tender evaluation process, impacting the likelihood of winning contracts.
Steps to Obtain ICV Certification
Here’s a step-by-step guide to obtaining ICV certification for your business:
- Understand the ICV Formula
The ICV formula evaluates a company based on several criteria, including:
- Goods and services procurement
- Emiratization
- Expatriate contribution
- Investment in the UAE
- Revenue from outside the UAE
Familiarize yourself with these criteria to understand how your business’s activities influence your ICV score.
- Prepare Required Documents
Gather the necessary documents for the ICV certification process. These typically include:
- Audited financial statements for the last financial year.
- Details of your procurement spend.
- Information on your workforce, including the number of Emirati employees.
- Records of investments and any revenue generated from exports.
- Select an Approved Certifying Body
ICV certification must be obtained from an ADNOC-approved certifying body. A list of approved certifying bodies is available on ADNOC’s official website. Choose a certifying body that aligns with your business’s needs and schedule an assessment.
- Undergo the ICV Assessment
The certifying body will conduct a thorough assessment of your business based on the ICV criteria. This involves reviewing your financial statements, procurement records, workforce details, and other relevant information. The assessment aims to calculate your ICV score accurately.
- Receive the ICV Certificate
Upon successful completion of the assessment, the certifying body will issue your ICV certificate. The certificate will include your ICV score, which you can use when participating in tenders and contracts with ADNOC and other entities.
- Maintain and Improve Your ICV Score
ICV certification is valid for one year, after which you will need to undergo a re-assessment. To maintain and improve your ICV score, consider:
- Increasing your local procurement of goods and services.
- Enhancing Emiratization efforts.
- Making further investments in the UAE economy.
- Expanding your business operations internationally to boost export revenues.
Tips for a Successful ICV Certification
- Plan Ahead: Start the certification process well before you plan to participate in tenders.
- Stay Organized: Keep detailed and organized records of all financial, procurement, and workforce-related documents.
- Consult Experts: Engage with ICV consultants or advisors who can guide you through the process and help optimize your ICV score.
Conclusion
ICV certification is a vital component for businesses aiming to secure government and semi-government contracts in the UAE. By understanding the ICV certification process and proactively working to enhance your ICV score, your business can benefit from increased opportunities and contribute to the UAE’s economic growth. At Unified Accounts & tax Services , we offer expert guidance and support to help you navigate the ICV certification process smoothly. Contact us today to learn more about how we can assist you in achieving ICV certification success.
