The ICV score is fully assessed based on the company’s inspected monetary statements. For procurement, tender procedures often come with clear bidding thresholds. These processes define the least monetary or operational standards that must be encountered for participation. These thresholds are essential in guaranteeing a level playing field, effectual resource allocation, and an attentive selection process. Thus, businesses are advised to accurately evaluate and adhere to the specified bidding thresholds. These could include monetary capabilities, project size, practical proficiency, or other important parameters.
How to Calculate ICV Score?
The ICV score measures the financial impact produced by a company working within the UAE. It is derived from a breakdown of the company’s expenses on goods and services found within the UAE here is the formula for calculating the ICV Score;
ICV Score = (Total Expenditure in UAE / Total Revenue) x 100
Below is an accurate mathematical illustration for computing the ICV score that can show nuances, depending on the scale of the business and the sector it works within, as demonstrated below.
For Suppliers within the UAE
ICV Score = (Value of Procured Goods x Supplier’s ICV + Emirati Costs + 60% of Expat Costs) / (Total Expenditure)
For Manufacturers in the UAE
ICV Score = (Costs of Manufacturing within the UAE + Emirati Outlay + 60% of Expat Expenditure) / (Total Outlay)
For Investments made within the UAE
The ICV score parallels 25% of the business’s overall assets set within the UAE. Its value scales with the uphill net book value of assets.
ICV Score = Net Book Value of UAE-based Assets / Total Net Book Value
Read more: Process of obtaining ICV Certification
What is the need for ICV certification in the Tendering Process?
In Country Value plays a very important role in the tendering process. Below are some key factors:
Elevating Local Participation
The ICV Certificate allows local enterprises to generate a level playing field. It inspires the contribution of native businesses and nurtures their development, aligning them to dynamically compete against global foils. The importance of ICV certification fuels a logic of shared duty in driving the nation’s development.
ICV Incorporation in Tendering
Under tendering procedures in UAE, the In Country Value (ICV) framework undertakes a key role. It helps as a passing criterion, whereby businesses competing for rewarding opportunities, whether in Abu Dhabi, Dubai, or other Emirates, must show their pledge to contribute to the local economy through concrete value creation.
Nurturing Long-standing Partnerships
ICV considerations boost partnerships between foreign entities and local industries. The tendering process alters into a boulevard for knowledge exchange, skill transfer, and capacity building. Through tactical partnerships, ICV enables the creation of an ecology that nurtures novelty and strengthens the nation’s modest edge.
Trademark of Commitment and Compliance
The desired ICV certificate signifies more than a simple document. It indicates a reflective commitment to the UAE’s economic wealth. Businesses bestowed the ICV certificate in Abu Dhabi, as well as across the UAE, validate their devotion to sustainable business practices, job formation, and the growth of local skills and proficiency.
Read more: Strategies to enhance ICV score in UAE
What are the Strategies for Meeting ICV Benchmarks?
Accomplishing In-Country Value (ICV) benchmarks is a go-ahead attempt that demands a tactical approach. Whether chasing the ICV certificate in Abu Dhabi, Dubai, or across the UAE, businesses must espouse advanced tactics to align with local value formation objectives.
- Staff Development: Capitalize on drill and upskilling local employees. It backs the nation’s human capital and boosts your ICV score.
- Local Dealer Engagement: Forge companies with local dealers to source resources and services. It enhances your ICV score and fosters economic development within the UAE.
- Set-up Investment: Back to the UAE’s set-up growth, from industrial facilities to research centres, intensifying your ICV impact.
- Skill Transfer: Enable the transfer of progressive skills and knowledge to local entities. It rushes innovation and signifies a commitment to the ICV framework.
- Collective Initiatives: Involve in joint undertakings with local businesses. It leverages interactions to cooperatively meet and exceed ICV benchmarks.
- Research and Expansion: Launch Research and Expansion initiatives within the UAE. It shows devotion to long-term novelty and securing a higher ICV score.
Seek the expert services of ICV Consultants in UAE
Integrating a deep understanding of tender bidding thresholds allows businesses to make knowledgeable decisions, tactically invest resources, and exploit their potential for effective tender results. Thus, contact us today and we shall be glad to assist you.