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.
Foreign businesses seeking ICV certification in the UAE are required to fulfill certain requirements, which include:
The supplier is required to fill out the Company General Information section of the ICV Certificate Template, which includes details such as:
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.
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.
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.
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.
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.
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.
To obtain ICV certification, foreign businesses must meet specific requirements, including:
Obtaining ICV certification offers several benefits for foreign businesses operating in the UAE, including:
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.