The In-Country Value (ICV) program is very important for businesses in the UAE, especially those that want to get government contracts. Companies that want to be more competitive and help the country’s economic diversification goals need to understand this program.

 What is the ICV program?

The IN-COUNTRY VALUE (ICV) is an evolution of partnerships driving in-country value creation through preferential procurement and opportunities, a WORLD-CLASS WORKFORCE, CONTINUED INVESTMENT, and the use of local resources. The program evaluates the economic input-output performance of suppliers and motivates them based on an accreditation system whereby scores are allotted to different economic activities conducted in the country.

Launched in 2018 primarily for oil and gas companies, the ICV program has now spread to several government authorities and is a requirement for those who wish to bid on government contracts in the UAE, including Dubai.

What Were the Origins of the ICV Program?

The UAE government implemented the ICV program with several strategic goals in mind.

Diversification:

Reducing reliance on oil revenues through the development of non-oil sectors and sustainable growth across multiple sectors, including the economy.

Localized Manufacturing Growth:

Attracting manufacturers to invest in manufacturing facilities in the UAE, building a healthy industrial base to boost self-reliance.

Employment Creation:

Creating employment for citizens and residents in the UAE by motivating companies to grow their footprint and employee base.

SME Development:

To assist small business suppliers to interact as subcontractors and vendors for large government projects and corporate purchase contracts.

Transfer of Technology:

An initiative to boost knowledge transfer and innovation by incentivizing multinationals to invest in R&D and train nationals in the UAE.

How does the ICV program work?

The ICV program is administered through a certification process that uses a scoring methodology to measure companies’ contributions to the UAE economy. Here’s how it works:

ICV Certificate and Scoring

Companies are required to secure a certificate of ICV from one authorizing body, which is a Ministry of Industry and Advanced Technology (MoIAT) approved certifying entity. A percentage score (0-100%) is allocated to the company on a certificate reflecting their in-country value activities.

The ICV score is determined based on the following:

UAE Producing Goods:

The value of goods and raw materials made in the country.

Services provided from within the UAE:

Services by UAE-based organizations include professional services, maintenance, and technical support.

UAE Investment:

Investments in fixed assets, research-and-development capability, and technology infrastructure in the UAE.

Emirati Staffing:

Salary and benefits paid to UAE national staff, with special emphasis on local capability building.

Expat Staff:

Salaries for expatriate staff staying in the UAE and their business contributions to the local economy.

Retained Earnings:

Profits reinvested into the UAE for business growth and development.

Certification Process

The ICV process is fairly straightforward:

Application:

Companies apply to an accredited certifying body by submitting documents.

Document Review:

The certifier looks at financial statements, bills, payslips, and more.

Calculation:

The ICV score is calculated in accordance with the official MoIAT methodology for calculating the ICV score.

Certificate Grant:

Once approved, the company will be awarded a 1-year ICV certificate.

Who Needs an ICV Certificate?

An ICV certificate is required for the following entities:

• Firms bidding on government contracts or tenders
• Consultants, vendors, and suppliers to government bodies
• Businesses participating in public-private partnerships
• Companies looking to do business with large state-owned enterprises

Even if your business does not currently need an ICV certificate, having one can help you secure a competitive advantage when making private sector sales to companies that have integrated ICV requirements into their procurement processes.

Benefits of ICV Certification

There are several benefits to securing an ICV certificate for businesses, which include

Access to Government Contracts:

For government tenders’ participation, the certificate is a requirement, and this enables you to access high-paying projects.

Competitive Advantage:

Higher ICV scores may be a distinguishing factor in tender bids and winning the business.

Business Expansion:

More and more private sector companies are now selecting suppliers with ICV accreditation (increasing your market).

Enhanced Credibility:

The certification demonstrates your commitment to the UAE’s economic growth, thereby bolstering your corporate image.

Long-term relationships:

Public-sector organizations and companies frequently prefer to develop long-term relationships with suppliers that exhibit significant in-country value.

Improving Your ICV Score

There are several strategic actions that companies can take to raise their ICV scores:

Localization of the manufacturing:

Set up/expand local manufacturing in the UAE to increase the locally manufactured product percentage.

Invest in Physical Infrastructure:

Invest your capital in the facilities, equipment, and technology.

Emiratisation:

Emphasize and elevate the percentage of UAE national staff as well as engage in their training and development.

Buy Local:

To the greatest extent possible, buy from suppliers and service providers that are directly based in the UAE.

Set up R&D Centers:

Invest in state-of-the-art research and development centers that underpin innovation and knowledge creation within the Emirates.

Reinvest Profits:

Keep reinvestment of earnings in the UAE instead of remitting all earnings to a foreign country.

Common Challenges and How to Overcome Them

There are still obstacles for companies seeking ICV certification:

Documentation Needs:

The certification application process demands detailed financial and operational documentation. By working with the team of auditors at experienced auditing firms such as Elite Auditing-Ismail Hajeir Auditing of Accounts, one can simplify this process and minimize errors.

Complicated Calculations:

The ICV calculation process is complex to understand. Expert advice ensures accurate interpretation and scoring.

Compliance Maintenance:

To keep the activities that contribute to your ICV score, you need continuous effort, not time-bound.

Cost Considerations:

Implementing changes to improve ICV scores may require upfront investments, though these typically yield long-term benefits.

The Role of Professional Auditors

It is important to contract certified professional auditing services for successful ICV certification. Expert auditors provide:

• Complete analysis of your current ICV situation
• How to increase the ICV score
• Accurate preparation and compilation of all necessary documentation
• Coordination with certification authorities during every phase.
• Continued support to maintain your certification and enhance your skills.

Elite Auditing—Ismail Hajeir Auditing of Accounts: We specialize in ICV certification for businesses to manage the program, ensuring the highest levels of expertise and accuracy.

Updates and Forward Look of ICV Program

The ICV program is under development and expanding. Recent developments include:

• Expansion of the ICV obligations to additional governmental entities
• Improved digital platforms for applying and certifying
• A tighter verification requirement to get it right.
• Synergy with other government strategies that promote economic diversification

Businesses need to keep up-to-date on the programs and align their strategies with the developing requirements.

Getting Started with ICV Certification

If you are ready to investigate ICV certification, here are a few steps for you to take:

Evaluate Your Qualification: Find out whether your business requires ICV certification based on the markets and clientele you are targeting.

Assess Your Present Status:

(INTERNALLY) do an “audit” of ICV at your operations to find out your current ICV scores.

Hire a Professional Support:

Associate with expert auditors that help you out during the certification process.

Document Collection:

Organize financial and accounting records, employer documents, vendor bills, and any other required documentation.

Develop a Value-Creating Plan if Necessary:

If necessary, develop a plan to improve your in-country value activities.

Apply:

Work with your selected certifying body to prepare and submit your application.

Conclusion

The ICV program is an important opportunity to showcase the support that businesses in the UAE provide to our nation’s economy as well as their ability to compete. Whether a big blue-chip or an SME start-up, knowing and engaging with the ICV program is an important part of success in the UAE market longer term.

When you achieve ICV certification and continue to build the value you offer in-country, you enable your operation to grow more sustainably while also helping drive the UAE’s vision for a knowledge-based economy.

Need Help with ICV Certification?

Elite Auditing—Ismail Hajeir Auditing of Accounts offers comprehensive ICV certification services tailored to your business needs. Our experienced team can help you:

• Navigate the certification process efficiently
• Maximize your ICV score
• Ensure compliance with all requirements
• Develop strategies for continuous improvement

Contact us today to discuss how we can support your ICV certification journey and help your business thrive in the UAE’s dynamic market.