ICV audits may only be conducted by ICV ICV-approved auditors, who are independent consultants accredited by ADNOC. These auditors possess the authority to assess a company’s compliance with the ICV policy and determine its economic value addition. They conduct a comprehensive and impartial evaluation of a company’s operations, including local expenditure, employment practices, and investment levels. By examining and verifying financial data, ICV auditors calculate the ICV score, representing the percentage of a business’s expenditures retained within the UAE.
Understanding How an ICV Score is Computed
ICV score is a quantitative measure that represents the proportion of value an enterprise contributes to the UAE economy through its expenditures. This score is determined based on various financial indicators, including:
- Local Procurement: The value of goods and services contracted with UAE local vendors.
- Employment: UAE national recruitment and retention of the same.
- Investments: Local investment.
- Operational Expenses: Expenditure that directly contributes to the UAE’s economic ambitions.
A higher ICV score represents a greater degree of support to the economic dreams of the UAE, making a company more competitive in obtaining tender contracts from the government and
Data Collection
Auditors collect a set of data that includes financial data, procurement data, and employee data. It is a necessity because the validity of the ICV score has its foundation in the completeness and consistency of the data collected. The auditors see to it that the data represents actual business behavior and adheres to ICV standards.
ICV Score Calculation
Applying a pre-formulated formula, the auditor determines the ICV score of the company, a measure of value retained within the UAE. The value is a determinant that is utilized by government authorities and large organizations to determine the extent to which a company aligns with the economic needs of the nation.
Issue of ICV Certificate
The ICV Certificate is issued after clearing the audit. Valid for 14 months from signing of the audit report, the certificate confirms a company’s ICV compliance and serves as a prerequisite for securing ADNOC and other government agency tenders.
Why Does a UAE Company Need an ICV Audit?
Involvement in the ICV audit provides a number of strategic advantages to businesses operating in the UAE:
- Compliance Guarantee: ICV compliance is a requirement for businesses that are doing business with ADNOC and the other stakeholders.
- Enhanced Business Opportunities: Companies with an excellent ICV score stand a higher chance of accessing government business as well as capturing market share.
- Accountability and Transparency: Audit makes stakeholders aware by leaving behind stakeholders with audited information regarding the economic inputs of a company.
Renewal of ICV Certificate
ICV certification is only for 14 months from the signed statutory audit report date. For companies to maintain compliance and qualify for bidding on subsequent contracts, companies must undergo a re-audit each year. Renewal of ICV certificate ensure companies continue to represent the changing economic priorities of the UAE.
Benefits of Getting ICV Certification
Getting an ICV certificate benefits in the following ways, which include:
- Market Competitiveness: A better ICV score improves the chances of a company getting government contracts and establishing a market reputation.
- Corporate Reputation: Proven dedication towards the economic interests of the UAE makes a brand more reliable and gains industry reputation.
- Long-Term Compliance: Ongoing membership keeps businesses alert to regulation changes and policy updates.
Ensuring Compliance with ICV Regulations
The renewal of the ICV certificate requires continuous compliance with established regulations. ICV auditors ensure compliance by conducting regular follow-ups and monitoring audits to maintain alignment with the required standards.
Contact ICV Certificate UAE, Reputable ICV Auditors in the UAE
ICV Certificate UAE is a premier ICV audit service provider in the UAE, offering professional guidance and comprehensive assessments to organizations seeking ICV certification. With extensive expertise in the ICV framework, the ICV Certificate UAE assists businesses in maximizing their ICV scores while contributing significantly to the UAE economy.
Beyond standard audits, we are committed to delivering tailored advisory services to enhance compliance and optimize local value. By engaging the expertise of seasoned ICV auditors such as Farhat & Co., companies can seamlessly initiate the ICV certification process while ensuring sustainable growth and strengthening their position in the UAE’s competitive market. Contact us today, and we shall be glad to assist you.
