An In-Country Value (ICV) certificate is a key requirement for businesses seeking government and ADNOC contracts in the UAE. Your ICV score measures the value your company generates locally through procurement, Emiratization, investment, and profit retention.
This guide will show you exactly how to calculate your ICV score using formulas and examples.
The ICV Formula: How It’s Calculated
ICV Score = (Total UAE Expenditure / Total Revenue) × 100
The official ICV score is calculated using the applicable MoIAT ICV template. In simple terms, the score is based on the company’s contribution across key areas such as goods or third-party spend, UAE-based investment, Emiratization, expatriate contribution, and eligible bonus factors.
ICV Score = Goods / Third-Party Spend Score + Investment Score + Emiratization Score + Expatriate Contribution Score + Eligible Bonus Score
A simpler way to understand the formula is:
ICV Score = Total UAE Economic Contribution ÷ Relevant Revenue or Cost Base × 100
Your percentage depends on your company’s financial records and contribution across different ICV categories, such as:
- Goods and Services Procurement – Spending with UAE-based suppliers or ICV-certified vendors.
- Emiratization – Hiring, training, and salary contribution for UAE nationals.
- Investments – Investment in UAE-based assets, infrastructure, technology, or business premises.
- Expatriate Contribution – Eligible contribution from expatriate employees working in the UAE.
- ICV Bonus Factors – Eligible factors such as export revenue, Emirati headcount, investment growth, advanced technology, or sustainability contribution.
For example, if a company has AED 1,000,000 as the relevant cost base and AED 420,000 of that amount contributes to the UAE economy through local suppliers, UAE-based investment, Emiratization, and other eligible factors, the estimated ICV score would be:
AED 420,000 ÷ AED 1,000,000 × 100 = 42%
This is only a simplified example. The official ICV calculation methodology is applied to your audited financial statements by a MoIAT-authorized certifying body, which verifies the supporting documents and calculates the final score reflected on your ICV Certificate UAE.
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Step-by-Step: ICV Score Calculation
Following is how businesses typically follow the procedure:
Prepare audited financial statements – The basis for your ICV score.
Collect supporting records – Payroll, invoices of suppliers, investment details.
Provide evidence of Emiratization – Proof of UAE national employment and training.
Submit to an ADNOC-approved auditor – They are the only ones who can verify and issue your certificate.
Obtain your ICV score and certificate – Valid for 14 months from the date of the financial statement.
How to Achieve the Highest ICV Score in UA
The strategies include:
Hire and train UAE nationals – Invest in Emiratization programs.
Source from local suppliers – Build partnerships within the UAE.
Retain profits locally – Keep reinvesting in your UAE operations.
Invest in local assets – Offices, technology, and facilities contribute positively.
How Top ICV Consultants in the UAE Can Assist
Ultimately, your ICV certificate in the UAE represents more than just a numerical value; it serves as tangible evidence of your company’s commitment to supporting the nation’s vision for sustainable economic growth. To seamlessly obtain ICV certification in UAE, businesses should seek the expert services of top ICV Consultants in UAE. Contact us today, and we shall be glad to assist you.
FAQs
What does ICV mean in the UAE?
ICV stands for In-Country Value. It measures how much your business contributes to the UAE economy through local sourcing, Emiratization, UAE-based investment, expatriate contribution, and eligible bonus factors. Your ICV score is then shown on the official ICV Certificate UAE, which can strengthen your position in ADNOC, government, and participating-entity tenders.
How is the ICV score calculated?
The ICV score calculation is based on audited financial statements and supporting documents. A MoIAT-authorized certifying body reviews your procurement, employment, investments, and eligible ICV data, then applies the official ICV formula to determine your score as a percentage.
What is considered a good ICV score in the UAE?
There is no fixed benchmark for a good ICV score because it varies by industry, business model, and tender requirements. In general, a higher score can improve your competitiveness. Manufacturers may improve their score through local sourcing and UAE-based assets, while service companies may focus on Emiratization, local supplier spend, and proper documentation.
How long is an ICV certificate valid?
Your ICV Certificate UAE is generally valid for 14 months from the date of issuance of the audited financial statements. Suppliers should apply for recertification before the certificate expires if they want to continue using a valid ICV Certificate for ADNOC, government, or participating-entity tenders.
How can I improve my ICV score?
Businesses can raise their score by:
- Hiring and training more UAE nationals.
- Increasing procurement from UAE-based suppliers or ICV-certified vendors.
- Investing in UAE-based assets, offices, technology, or infrastructure.
- Maintaining clear invoices, payroll records, audited financial statements, and other supporting documents.
- Working with an experienced ICV consultant or MoIAT-authorized certifying body can also help ensure your eligible contributions are properly captured in the final score.
