The UAE government has recently introduced the National In-Country Value (ICV) certification program to promote local industries and businesses. The ICV certificate UAE is a document that evaluates the contribution of suppliers to the local economy. This initiative aims to increase the contribution of local industries and support local companies in advancing economic and social development. In this article, we will discuss the role of ICV certification in promoting sustainable business practices.
Sustainable Business Practices and ICV Certificate UAE
The ICV certification program is closely aligned with the principles of sustainable business practices. Companies that achieve ICV certificate UAE must demonstrate their commitment to social, environmental, and economic considerations. Some of how ICV certification promotes sustainable business practices include:
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Encouraging Local Sourcing and Manufacturing
One of the primary goals of the ICV certification program is to encourage companies to source and manufacture locally, thereby reducing the carbon footprint associated with the transportation of goods. By promoting local sourcing and manufacturing, the ICV program is also helping to create a more sustainable and resilient supply chain. This is particularly important in the UAE, which heavily depends on imports for many of its goods and services.
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Supporting Local Industries and Small and Medium Enterprises (SMEs)
The ICV program is designed to support local industries and SMEs by providing them with a competitive advantage in the procurement process. This support is crucial for the growth and development of the local economy, as SMEs are often the drivers of innovation and job creation. By promoting the growth of local industries and SMEs, the ICV program is also helping to create a more diversified and sustainable economic base.
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Creating Job Opportunities for Emiratis
The ICV program is also helping to create job opportunities for Emiratis in the private sector. By promoting the hiring and development of Emiratis, the ICV program is contributing to the country’s efforts to reduce dependence on foreign labor and create a more sustainable workforce. This is particularly important in the context of the UAE, where the majority of the workforce is made up of expatriates.
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Promoting Investment in the UAE
The ICV program is also promoting investment in the UAE by providing companies with an incentive to invest in local industries and services. This investment is crucial for the growth and development of the local economy and for creating new job opportunities for Emiratis. By promoting investment in the UAE, the ICV program is also helping to create a more sustainable economic base that is less dependent on oil revenues.
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Enhancing the Environment for Doing Business
The ICV program is helping to enhance the environment for doing business in the UAE by promoting transparency and accountability in the procurement process. By providing companies with a clear and objective assessment of their contribution to the local economy, the ICV program is helping to create a more level playing field for businesses operating in the UAE. This is particularly important in the context of sustainable business practices, as companies that operate in a transparent and accountable manner are more likely to be socially and environmentally responsible.
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Diversification of Economic Base
Incentivizing new sectors indirectly through supplier networks helps diversify the economy away from oil dependence, reducing vulnerability to commodity price fluctuations. By promoting investment in new sectors, the ICV program is helping to create a more diversified and sustainable economic base that is less dependent on oil revenues.
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Environmental Sustainability
Localization and circular supply chains lower the carbon footprint of long-distance logistics. Investments in green sectors and donations for environmental causes are also considered under ICV scoring. By promoting environmental sustainability, the ICV program is helping to create a more sustainable and resilient economy that is better equipped to address the challenges of climate change.
Read More: What are the key considerations for obtaining an ICV Certificate?
The Benefits of ICV Certificate UAE
The ICV certification program provides several benefits to suppliers, including:
- Strategic localization of supply chains and the development of new local industries and services.
- Stimulating and attracting investments, diversifying the economy, and increasing GDP and exports.
- Creating job opportunities for Emiratis in the private sector.
- Supporting national industries and redirecting amounts spent in procuring goods and services towards the national economy.
The program captures the total amounts spent inside the country on manufacturing, local products and services, investments, and the hiring and development of Emiratis. It aims to support the national industry and redirect amounts spent in procuring goods and services towards the national economy.
Conclusion:
In conclusion, the In-Country Value (ICV) certification program is a significant step towards promoting sustainable business practices in the UAE. However, achieving ICV certification can be a complex and time-consuming process, particularly for companies that are new to the program. Therefore, it is recommended that companies seeking to achieve ICV certification seek the guidance of experienced ICV certificate consultants in the UAE. By working with experienced ICV certificate consultants, companies can ensure that they can achieve ICV certificate UAE in a timely and cost-effective manner and demonstrate their commitment to sustainable business practices in the UAE.
Read More: Embracing Localization: The Impact of ICV Certification on UAE’s Workforce
