The UAE government has introduced the In-Country Value (ICV) certification program to promote local content and boost the contribution of domestic suppliers to the national economy. The ICV certificate evaluates a company’s contribution to the local value chain and gives preference to certified suppliers in government contracts and purchases. This article discusses how the ICV Certificate UAE strengthens business partnerships in the UAE.
ICV Calculation Formula
The ICV calculation formula takes into account several factors, including:
- Goods manufacturing cost
- Investment in UAE
- Emiratization
- Expatriate contribution
- Bonus – revenue from outside UAE, Emirati headcount, and investment growth
The formula is designed to evaluate the supplier’s contribution to the UAE’s economy and provide a score that can be used to determine their eligibility for government tenders and contracts.
Business Partnerships through ICV Certificate UAE
By participating in the ICV program, suppliers can demonstrate their commitment to supporting the local economy and contributing to the growth of the industrial sector. This, in turn, can lead to stronger business partnerships and increased opportunities for collaboration. Some of the ways to strengthen business partnerships through ICV Certificate UAE include:
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Enhancing the Environment for Doing Business
One way that ICV certificate UAE can strengthen business partnerships is by enhancing the environment for doing business in the industrial sector. The ICV program promotes investment in industrial activities, which can contribute to comprehensive economic growth in GDP. By investing in the local economy, suppliers can demonstrate their commitment to the region and build trust with their partners.
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Promoting Industry Based on Knowledge and Innovation
Another way that ICV certificate UAE can strengthen business partnerships is by promoting industry based on knowledge, innovation, and advanced technology. The ICV program encourages suppliers to invest in research and development and to develop new products and services that meet the needs of the local market. By working together to develop new solutions, suppliers and their partners can build stronger relationships and create new opportunities for collaboration.
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Benefiting from Government Procurement Tenders and Contracts
The ICV program also aims to increase the percentage of industrial projects and national companies benefiting from government procurement tenders and contracts. By participating in the ICV program, suppliers can demonstrate their commitment to supporting the local economy and contributing to the growth of the industrial sector. This can lead to increased opportunities for collaboration with government entities and other national companies.
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Maximizing the Percentage of Local Purchases
Finally, the ICV program aims to maximize the percentage of local purchases and contribute to the development of the industrial sectors within the country. By sourcing locally, suppliers can reduce their carbon footprint, support local businesses, and contribute to the growth of the local economy. This can also lead to increased opportunities for collaboration with local suppliers and partners.
Benefits of ICV Certificate UAE
ICV certificate UAE offers several benefits to suppliers, including:
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Strategic Localization of Supply Chains
One of the key benefits of ICV certificate UAE is the strategic localization of supply chains and the development of new local industries and services. This is achieved by encouraging suppliers to source their goods and services locally, which in turn helps to create new job opportunities and stimulate economic growth. By participating in the ICV program, suppliers can demonstrate their commitment to supporting the local economy and contributing to the growth of the industrial sector. This can lead to stronger business partnerships and increased opportunities for collaboration.
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Diversification of the Economy
Another benefit of ICV certificate UAE is the stimulation and attraction of investments, which can lead to the diversification of the economy and an increase in GDP and exports. By investing in the local economy, suppliers can help to create new job opportunities and support the growth of local industries. This can also lead to increased exports, as local industries become more competitive and able to compete on the global stage.
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Creation of Job Opportunities for Emiratis in the Private Sector
ICV certificate UAE also offers the benefit of creating job opportunities for Emiratis in the private sector. By participating in the ICV program, suppliers can demonstrate their commitment to supporting the local workforce and contributing to the growth of the industrial sector. This can lead to increased opportunities for collaboration with local partners and the creation of new job opportunities for Emiratis.
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Growth of Local Industries through Financing Incentives
Finally, ICV certificate UAE can help to support the growth of local industries through financing incentives that will be declared in the future. By investing in the local economy and supporting local industries, suppliers can take advantage of these incentives and help to create new opportunities for growth and development.
Conclusion
In conclusion, ICV certificate UAE can provide numerous benefits for suppliers looking to strengthen their business partnerships and contribute to the growth of the industrial sector in the UAE. However, the process of obtaining the certificate can be complex and time-consuming, requiring a thorough understanding of the ICV Calculation Formula and Template Instructions. To ensure a successful application, suppliers may want to consider seeking the guidance of ICV Certificate consultants in the UAE.
Read More: General Overview of ICV Certificate in UAE
