The National In-Country Value (ICV) Program in the United Arab Emirates aims to improve the performance and sustainability of the industrial sector by increasing the contribution of local industries and supporting local companies. The ICV certification UAE is an advantage for suppliers during the award of contracts and purchases based on their ICV score. To help foreign businesses navigate the ICV certification process, this guide will provide information on the requirements, guidelines, and steps to follow.
Requirements for Foreign Businesses to Obtain ICV Certification UAE
Foreign businesses seeking ICV certification in the UAE are required to fulfill certain requirements, which include:
1. Company General Information
The supplier is required to fill out the Company General Information section of the ICV Certificate Template, which includes details such as:
- Name as per License
- License Number
- Address as per License
- Contact Person details: Name, E-mail, Office Tel number, Mobile number
- Company Type (e.g., Small Medium Enterprises (SME) in UAE, Non-SME in UAE, International Company)
- Company based in (Within UAE, Outside UAE)
- Financial Year End Date
- Audited Financial Statements Issue date
- Company Business (Goods Manufacturer, Service Provider)
2. In-Country Value Details
The supplier is required to fill out the In-Country Value details section of the ICV Certificate Template, which includes information on goods manufacturing, third-party cost, investment, Emiratization, expatriate contribution, and bonus.
3. Registration and Documentation
The supplier is encouraged to register in the Tawteen Club portal, a platform for Emirati job seekers and companies offering jobs. Additionally, they are required to have all documentation supporting the reported cost figures and ensure that the figures reported in the ICV Certificate Template tally with the latest audited Financial Statements.
4. Consistency and Compliance
The figures reported in the ICV Certificate Template should align with the supplier’s latest audited Financial Statements. The audited financial statements should be as per the International Financial Reporting Standards (IFRS) and should not be older than 2 years from the certification year. For newly established companies without audited financial statements, management accounts for up to 9 months can be used for ICV calculations.
Steps Involved in Obtaining ICV Certification UAE
The process of obtaining ICV certification typically involves the following steps:
To initiate the process, businesses must first register with the ICV program by creating an account on the dedicated ICV portal. This establishes the official connection between the business and the certification program.
The next critical step involves gathering pertinent data and documentation that substantiates the business’s activities in the UAE. This includes audited financial statements, supplier contracts, and investment plans, offering a comprehensive overview of the company’s economic footprint in the country.
Using the ICV calculator available on the ICV portal, businesses compute their ICV score. This score reflects the extent of localization and economic contribution achieved by the business within the UAE. The calculation involves various parameters, such as procurement from local suppliers, employment of UAE nationals, and investment in local infrastructure.
ICV Certification UAE:
Upon completion of the ICV calculation, businesses submit their ICV application along with supporting documentation to an authorized ICV certification body. This body conducts a thorough verification process to ensure compliance with ICV requirements and standards.
ICV Certificate Issuance:
Successful verification results in the issuance of the ICV certificate by the certification body. This certificate serves as formal recognition of the business’s commitment to an in-country value program and is valid for two years. It attests to the company’s alignment with the UAE’s economic development goals and localization initiatives.
Key Requirements for ICV Certification UAE
To obtain ICV certification, foreign businesses must meet specific requirements, including:
- Local Spending: Businesses must demonstrate a commitment to spending a certain percentage of their procurement budget on goods and services from local suppliers.
- Investment: Businesses are encouraged to invest in the UAE by establishing operations, conducting research and development, or partnering with local companies.
- Emiratization: Businesses are expected to contribute to the UAE’s workforce by hiring and developing Emirati employees.
- Technology Transfer: Businesses are encouraged to transfer advanced technologies and knowledge to the UAE by training local employees and collaborating with local institutions.
Benefits of ICV Certification UAE for Foreign Businesses
Obtaining ICV certification offers several benefits for foreign businesses operating in the UAE, including:
- Increased Competitiveness: ICV-certified businesses gain a competitive advantage in government tenders and procurement processes.
- Access to Financial Incentives: ICV-certified businesses may be eligible for financial incentives, such as grants, subsidies, and reduced tariffs.
- Enhanced Brand Reputation: ICV certification demonstrates a business’s commitment to supporting the UAE’s economic development, enhancing its reputation among customers and stakeholders.
- Improved Market Access: ICV certification can facilitate market access for foreign businesses by enabling them to participate in government projects and supply chains.
Seek the Expert Services of Top ICV Consultants in UAE
Acquiring ICV certification UAE is not only a regulatory requirement but also a strategic move for businesses aiming to establish a robust presence in the UAE market. By adhering to the In-Country Value program, foreign businesses can showcase their dedication to contributing meaningfully to the local economy and fostering sustainable economic development in the region. However, navigating the ICV certification process can be complex therefore, foreign businesses should seek the guidance of experienced ICV consultants in the UAE. These consultants can provide expert advice on ICV requirements, assist with data collection and reporting, and ensure compliance with all regulations.