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Benefits and Challenges of ICV Certification in the UAE

In-Country value (ICV) certification is, in many aspects, a set approach towards business marketing and economic development. Through ICV firms and organizations are able to garner recognition for fostering local economies in the regions where they operate, while increasing revenues and profits at the same time. Thus, the certification procedure serves as a highly useful means for these entities to demonstrate their contributions towards the creation of jobs, the promotion of economic growth, and the advancement of overall quality of life within the UAE.

Benefits of ICV certification in the UAE

Immediate financial gains

 ICV certificates can help companies save money on taxes and cut down on business costs by providing a range of incentives, including tax credits and grants. This can help businesses accelerate their profits while helping the economy. 

Community growth

With an ICV certificate, companies can demonstrate their dedication to sustainable development initiatives such as investing in infrastructure or job training programs. This aids businesses in building trust among local communities and simultaneously improves their brand value.

Expansion and market value

As mentioned above, ICV boasts a lot of financial incentives for companies. These incentives eventually translate into tangible cost savings that can significantly improve a company’s net market value. Tax credits, for instance, can significantly reduce a company’s tax liability by redirecting those funds back into the business. This, in turn, improves the company’s capacity for expansion and reinvestment.

Grants

Grants obtained through ICV initiatives are highly valuable. This is because grants can fuel projects, such as broadening production capacity and investing in new products. When businesses make use of grants, they help themselves and the economy by stimulating economic activities and generating employment opportunities.

Read more: Strategies to enhance ICV score in UAE

Competitive Advantage

ICV certification is ideal for procurement processes. Governmental bodies tend to favour suppliers and partners with high ICV scores. This preference is not merely a matter of policy but often a strategic understanding that companies with strong ICV credentials are more likely to have robust local networks and extensive supply chains.

 Investor Trust

Investors are interested in companies that actively partake in the economic and social development of the UAE. A strong ICV record serves as irrefutable evidence of such dedication; it sends a clear message that the company is more than a profit-making machine.

Long-sighted Approach

ICV offers more than immediate financial returns; its scope extends to long-term economic gain, brand development, and improvement of international image. For example, Qatar is set to become the next international hub in all things business due to the incorporation of ICV practices.

Challenges of ICV certification in the UAE

Tedious Regulatory Mechanisms

The UAE has many rules that differ between emirates, which may confuse and create challenges for businesses operating in multiple areas. Understanding and following these diverse requirements requires lots of time and resources.

Variation in Regulations

ICV requirements vary from industry to industry. For instance, ICV requirements for the oil and gas sector may differ from those in the marketing or finance sectors. Developing a know-how for the complexities of these criteria can be a hurdle for busy firms who have a lot of demands on their hands.

Significant initial investments 

Under ICV, companies have to allocate significant amounts of resources to various areas e.g. to labour forces, start-up funding, and local sourcing. Companies often have fixed budgets so this can be a challenge, and it can be hard for some firms to visualize the long-term benefits associated with investment.

Read more: Importance of ICV Certification for Businesses in the UAE

Shifting of resources

The local sourcing of goods and services often presents a difficult task for companies that rely on imported raw materials or delegation of services. Again, firms may have to spend significant time researching alternative supply chain strategies or formulate other plans.

Book-keeping Constraints

Accurate, timely record-keeping is a key aspect of ICV. For large companies, managing extensive amounts of data is no small task, as it is both time and resource-intensive.

Growth and Change

ICV requirements are continuously evolving, and keeping score of every change in process and regulation can be demanding for big firms.

Audit and Verification

There are numerous verification processes in the ICV program to ensure compliance. Preparing for and undergoing these assessments can be resource-intensive and tedious for large-scale corporations.

Seek the expert services of top ICV Consultants in the UAE

A well-developed ICV program reflects a company’s dedication to corporate responsibility (CSR). Through ICV certification, firms and organizations are able to garner recognition for fostering local economies in the regions where they operate, while increasing revenues and profits at the same time. Therefore, contact us to seamlessly obtain ICV certification in UAE and we shall be glad to assist you.

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