What are the objectives of the ICV Program in UAE?
ICV certificate UAE has several objectives, essentially it has a significant role in the development of economic growth, innovation, and ... Read more
ICV Certificate In UAE
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ICV Certification in Abu Dhabi
In the UAE, an In-Country Value (ICV) Certificate is essential for government and ADNOC tender submissions. The In-Country Value (ICV) Program’s primary goal is to diversify the UAE economy by localizing more goods and services, expanding employment opportunities for UAE citizens in the private sector, and localizing key functions in various industries. Under the direction of the Ministry of Industry and Advanced Technology (MoIAT) 2021, the Program was subsequently implemented at the national level.
What does the ICV Certificate Program offer?
Under the National In-Country Value (ICV) Program, certifying bodies in the UAE offer issuance of ICV Certificates. Further, the program extensively enhances the ICV Score of companies through workforce Emiratization, growth, and local investment. Audit firms in the UAE highly ensure that companies are geared up to submit pre-audited financial statements, as an essential requisite to obtaining the National In-Country Value (ICV) certification. Under the ICV program, Audit firms in the UAE essentially ensure that companies are fully compliant to the set ICV regulations and standards.
Main objectives of ICV Certification
The ICV certification program was designed to accomplish the following main goals:
- To promote Emiratis’ job prospects in the private sector
- To facilitate GDP diversification
- To provide local businesses with technological expertise
- To enhance regional supply networks
An organization’s ICV certificate establishes a contractor’s or supplier’s In-Country Value contribution to the UAE economy. An ICV certificate may give suppliers and contractors a considerable edge over competing businesses during the bidding process.
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How to Apply for ICV Certificate in UAE?
- Before applying for an ICV certificate in UAE, suppliers must be aware of the necessary conditions. Suppliers may help ICV certification service providers in Dubai to get their ICV certificates. The essential prerequisites are as follows:
- The suppliers should get the ICV certificate for each of their many legal entities if they need to be certified. Even if the Firm’s owner is the same, the government views each license as a distinct legal entity.
- The MoIAT will issue a combined ICV certificate for the Firm in that Emirate if a company has many branches in the same Emirate that carry out comparable operations and are owned by the same entity.
- According to suppliers, the scores submitted in the ICV certificate should match exactly with the supplier’s audited financial records. Additionally, confirm that the financial statements have been audited following international financial reporting standards (IFRS).
- The financial statements that have undergone an audit cannot be more than two years old as of the certification year. To be eligible for ICV certification in 2020, vendors must not submit audited financial statements older than 2018.
- Companies that are young (less than ten months old) could not have financial statements that have been audited. These businesses are eligible to submit Management Accounts for up to a 9-month period, which may be utilized for ICV computations. Audits should be performed on management accounts that are older than nine months.
- Beginning on the day the audited financial statements have been produced, the ICV certificate will be valid for 14 months. During the time of validity, suppliers may recertify their ICV certifications using the same audited financial statements. However, the validity period of 14 months beginning with the initial issue will remain the same.
- The suppliers should choose the impaneled certifying organization that will provide the ICV certificate in the UAE. However, suppliers cannot switch certification organizations for any given year without valid grounds.
- Under the ICV certification project, suppliers that make and provide a completed good to a client will be regarded as goods manufacturers. To qualify as Goods Manufacturers in the UAE, such businesses must possess an industrial license.
- Under the ICV Certification program, vendors that are neither goods manufacturers nor holders of an “industrial license” will be regarded as service providers.
How to Get an ICV Certificate in UAE?
To get an ICV certificate in the UAE, the MoIAT has created a simplified process. The top ICV certification service providers in Dubai can advise Suppliers on the procedure. To receive the ICV certificate, the basic procedures listed below must be followed:
- Publish the company’s or supplier’s audited financial accounts following IFRS.
- Complete the certificate application form according to current requirements and the financial statement.
- Use the certificate under each relevant authority’s recommendations.
ICV score has now become a crucial component of the ADNOC bidding process. All ADNOC vendors must submit the supplier submission form and contact an ADCOC certifying body for an ICV certificate.
The ICV certificate is only available in the UAE through ICV-accredited auditors or audit firms. Only the audit report of an entity provided by an authorized external auditor or audit firm from the government of the UAE will be used by the ICV auditor or audit firm to issue the ICV certificate.
ICV Certification Services in UAE
Professional guidance is highly essential to efficiently complete the complex process of obtaining an ICV certification in the UAE. Apart from submitting the audited financial statements and completing the MoIAT-required supplier submission form, suppliers must also adhere to several other standards. We are a top-notch ICV certification service provider in the UAE, we efficiently assist suppliers to maintain full compliance to the set ICV laws and regulations. Further, we have an expert team of auditors and accountants that can effectively execute the Template Filing criteria. Creation of audited financial accounts in compliance to International Financial Reporting Standards and offering expert ICV advice to organizations is no exception to the list of premiere services offered by Farahat & Co. Contact us today and we shall be happy to assist you!
Frequently Asked Questions
Q1. Who is responsible for issuing ICV Certificates?
To obtain an ICV Certificate in the UAE, certifying bodies issue the ICV certificate.
Q2. Who needs ICV certification?
Under ICV rules, any organization, whether it is located within the UAE or outside can obtain an ICV Certificate. Since the ICV Score is a crucial component for contract review and award process, Tier 1 suppliers, i.e. the suppliers that directly provide products or services to the Program Partners, may be compelled to disclose it as part of the National ICV Program. To guarantee that they are competitive in their tender with Tier 1 suppliers, Tier 2 and below providers may also be asked to present their ICV Certificates.
Q3. What does the ICV Score signify?
The Company’s value addition to the UAE economy is reflected in the ICV Score. The following factors are taken into account in order to reach the Score, which is expressed as a percentage:
- Manufactured goods for commercially regulated suppliers.
- Procurement of products and services from third parties
- Growth and local investment
- Workforce Emiratization
- Contribution of expatriates
- Revenue generation outside of the UAE.
Q4. How often are suppliers asked to renew their ICV Certificates?
Each ICV certificate is valid for 14 months, commencing from the day the audited financial statements were issued, the date on which the financial statements were signed, or on the earlier issuing of new financial statements.
Q5. Does submitting a bid for a tender require meeting a standard or threshold?
No minimum rating or benchmark is necessary to submit a tender bid for a tender. Based entirely on the audited financial records of the Company, the Score is determined and will change depending on the various qualities.
The ICV score will be 0 if a corporation participates in a tender without having an ICV certificate.
The ICV score will be 0 if a corporation participates in a tender without having an ICV certificate.
Q6. What makes the Unified Certification Process and the implementation programs differ?
ICV Implementation and ICV Certification are the two components that make up the In-Country Value program.
- The ICV certification component is standardized and coordinated across all ICV participating organizations and is overseen by the Ministry of Technology and Advanced Technology (MoIAT). All of the involved organizations consider the unified ICV certificate. A single ICV certificate per legal entity, to be utilized by all participating companies, is thus all that Suppliers must provide.
- At each entity level, a different ICV implementation will be used. It illustrates how each participating organization will apply the certificate to its operations. As a result, each participating organization will evaluate the ICV certificate in line with its policy.
To get an ICV certification, all suppliers are highly urged to undergo the ICV examination and certification procedure.
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