The In-Country Value (ICV) Program was officially issued by the Abu Dhabi Department of Economic Development (ADDED) in February 2020. The core aims of the ICV program are to foster GDP growth, maximize human resource development, and increase the tech-related capacities of UAE’s businesses. The end goal of these objectives is to boost UAE firms’ competitiveness on a global scale, promote local start-ups, and accelerate economic growth.
Requisites for Attaining ICV certification in UAE
- Any company with the specific aim of participating in a tender with the UAE government/semi-government entities as notified by DED & ADNOC, is required to possess an ICV certificate.
- ICV certificates can only be conferred by certified, empanelled bodies.
- All figures entered in the ICV certificate template should be consistent with the company’s latest audited Financial Statements.
- The audited financial statements must be in line with the International Financial Reporting Standards (IFRS), and must not be older than two years from the certification year i.e. for ICV certification in 2020, the audited financial statements to be considered must not be older than 2018. For newly opened companies (operational for less than a 10-month period), who do not have audited financial statements, the management records for a period of up to 10 months can be used for ICV calculations.
- Any management accounts for a period of 10 months or more are subject to audit.
- The ICV certificate is valid for a time period of 14 months, beginning with the date of issuance of Audited Financial Statements (AFS). Companies are given the option to attain recertification during this “valid time frame” if they so choose. The first validity will remain in place nevertheless.
Procedure
- Assess the financial statements based on International Financial Reporting Standards from a sanctioned auditor in the UAE. As mentioned before, management records can be substituted for newly created enterprises.
- Get registered with a pertinent ICV certifying body.
- Upon securing a position with a certifying body, companies are not permitted to switch their certifying body without suitable justifications and prior authorizations from the concerned departments.
- Companies must then fill and submit the ICV Template to the certifying body. This template must be completed per the guidelines issued by MOIAT.
- The figures reported in the ICV Certification Template (ICV Template) should be consistent with the figures in the company’s audited financial statements and supporting documents.
- The company’s ICV Template will take into account the net costs while providing goods or services for all clients (including governmental entities) and revenue made during the fiscal year.
- All the figures reported in the ICV Template are to be in AED.
- In circumstances where a company is unable to provide consumption details (listing by vendor and by invoice), purchases made during the year may be considered. In such a case, the differentials of opening and closing stock should be adjusted as “others” to tie it back to the net consumption figure in the various books of records.
- Assumptions and calculation methodologies utilized in preparing the ICV Template must be consistent with the guidelines.
- Companies and certifying Bodies will be required to share the requested information with the appropriate authority.
- Any gross laxity or purposive evasion by companies in their submissions will definitively result in proper disciplinary action that will be administered through the concerned departments.
- Systematic Evaluation
This entails a thorough assessment of the company’s application. It is here that the ICV template is duly verified, with supporting documents in accordance with the guidelines and procedures issued by MOIAT that are uniform within industries.
Read more: How to Enhance ICV Score in UAE
- Approval from ICV Committee
The ICV committee may approve the application after evaluation checks have been completed satisfactorily. The ICV committee is answerable to MOIAT, which analyzes the certification process and will approve the agreed-upon processes followed by the Certifying Body.
- Supplier approval on ICV
The supplier then rechecks and approves the unsigned ICV Certificate sent to the Certifying Body.
- Official Awarding of ICV Certificate
The certifying body formally issues the ICV Certificate; subsequently, the supplier submits it to one of the participating entities.
Seek the services of ICV Consultants in the UAE
The In-Country Value (ICV) program is a highly strategic initiative. ICV procedures encompass a comprehensive assessment of a company’s operations, including procurement, employment, and supply chain management. Businesses are gauged based on their local spending, job creation, and engagement with local suppliers and manufacturers. The program boosts the localization of goods and services, leading to improved economic benefits for the UAE and the advancement of long-term goals for a sustainable, diversified economy. Thus, for companies to effectively maintain their records, check their performance, and are overall up-to-the-mark in their production and marketing ways, it is advisable to seek the expert services of top ICV Consultants in UAE.
Therefore, contact us today and we shall be glad to assist you.
