Once a company obtains the ICV (In-Country Value) certificate, it should outline a plan to enhance its ICV score. ICV score is a metric used to assess a company’s contribution to the local economy in the UAE, therefore, a higher score signifies a more substantial contribution to economic growth. While no specific benchmarks are classifying the score as good or bad, several factors can help improve it. This article will provide a more in-depth examination, offering a strategic approach to enhancing the ICV score. ICV Consultants in UAE assists businesses in obtaining ICV certification and enhancing their score.
Factors that Boost ICV Score
Factors that affect a company’s ICV (In-Country Value) score can be divided into two distinct categories, each playing a critical role in shaping the company’s contribution to the local economy in the UAE. These categories are not only pivotal in determining the ICV score but also provide a comprehensive understanding of how businesses can actively participate in the economic development and sustainability of the region.
A. Economic Contribution
Manufacturing goods for the country:
The production of goods locally is a fundamental driver of a higher ICV score. Companies with an industrial license that manufacture goods within the UAE not only contribute to economic growth but also create a significant number of job opportunities. The more goods a company manufactures locally, the stronger its impact on the local economy, resulting in a higher ICV score.
For companies without an industrial license, third-party spending within the UAE is a direct indicator of their ICV score. By spending on local goods and services, these companies actively contribute to the local economy. This support for local vendors and entrepreneurs has a direct and positive impact on the ICV score, showcasing their economic contribution through procurement. The more a company spends on local businesses, the higher its ICV score, reflects its commitment to the program’s goals.
Investments in infrastructure, property, plant, equipment, and other assets are not just financial commitments; they are also investments in a higher ICV score. Companies that allocate resources for local investments contribute to job creation and improved infrastructure. These investments attract further business activities and economic growth, directly translating into a stronger ICV score.
Local sourcing stands as a critical pillar within the ICV program as it revolves around the practice of procuring goods and services from local vendors and suppliers based in the UAE. Companies actively embracing local sourcing display a profound commitment to bolstering the local business ecosystem and increasing its growth. This encompasses sourcing raw materials, components, or services locally whenever feasible.
Read More: How to Calculate ICV Score?
B.Workforce and Talent Development
This pivotal step is in complete alignment with the overarching objective of all ICV-related initiatives: to demonstrate a company’s unwavering dedication to nurturing local economic expansion and sustainability. Companies can effectively realize this commitment by implementing a multifaceted approach that goes beyond recruitment:
- Actively hiring local Emirati graduates, thereby contributing to their employment and the growth of the local workforce.
- Investing in the professional development of Emirati talent through robust training programs.
- Nurturing Emirati employees’ progress through mentorship and ongoing guidance.
Expatriate personnel serve as indispensable assets in numerous industries, delivering vital technical proficiency, cultural diversity, and a global outlook to workplaces. Their proactive involvement within the workforce significantly enhances talent cultivation within the organization, therefore, raising the company’s ICV (In-Country Value) score. By fostering a diverse and adept workforce that encompasses both Emirati and expatriate talent, the company underscores its resolute commitment to talent development and economic expansion, thereby bolstering its ICV standing.
Bonus (Revenue from Outside the UAE, Emirati Head Count, Investment Growth)
In addition, companies are granted bonuses based on the below:
- Revenue Diversification: Generating revenue from international markets showcases financial strength, enabling greater investments in local initiatives, and talent development, and contributing to a higher ICV score.
- Emirati Workforce Expansion Emphasizing the ongoing expansion of the Emirati workforce reflects a steadfast commitment to local job creation and continuous skill enhancement, ultimately resulting in a stronger ICV score. To put it simply, the more a company dedicates itself to long-term increases in local hiring, the higher its ICV score will climb.
- Sustained Investments: It’s not enough for companies to invest locally; they need to do so in a sustained manner to earn a higher score, reaffirming the company’s role in regional economic growth.
Avail the expert services of top ICV Consultants in the UAE
Conclusively, the ICV certificate in UAE assesses a company’s local economic contribution, with a higher score indicating a more substantial impact. Key factors influencing the ICV score include manufacturing goods locally, spending on local goods and services (particularly for non-industrial firms), investing in local infrastructure and assets, actively sourcing materials and services from local vendors, promoting Emiratization by hiring and developing local talent, acknowledging expatriate contributions, and earning revenue from international markets. Sustained investments in the local economy and continuous expansion of the Emirati workforce further boost a company’s ICV score, underlining its commitment to regional economic growth and sustainability. ICV Consultants in UAE assists businesses in obtaining ICV certification and enhancing their score. Thus, contact us today and we shall be glad to assist you.