The In-Country Value (ICV) program is an initiative by the UAE government to encourage companies to build the national economy by sourcing goods, services, and labor locally. Having an ICV certificate not only improves your company’s reputation but also enhances your eligibility for tenders issued by government and semi-government entities such as ADNOC, Etihad Rail, and other ICV-adopting bodies. Companies without a certificate can still participate, but will receive a zero ICV score.
Below is a clear explanation of the conditions, process, and requirements for obtaining an ICV certificate in the UAE.
What Is An ICV Certificate?
An In-Country Value certificate or ICV certificate is an official document that measures how much a company contributes to the UAE economy. The ICV score is stated on the system-generated ICV Certificate and reflects the total amounts spent on local products and services, investments, and the hiring and development of Emiratis.
The ICV Certificate is issued to suppliers (the company acquiring the ICV Certificate) by authorized Certifying Bodies, evaluating their contribution to the UAE economy. Certified suppliers are then able to submit the ICV Certificate to any of the Participating Entities in the program.
Companies that have an ICV certificate are likely to have an advantage when evaluating tenders and procurement processes. In fact, many federal and local authorities in the UAE consider ICV scores when awarding their contracts.
Who Needs an ICV Certificate in the UAE?
An ICV certificate is particularly important if a company wants to:
- Bid for government contracts
- Work with semi-government or state-owned companies such as ADNOC, Aldar, Etisalat, Etihad Rail, and other ICV-adopting entities
- Improve competitiveness in the UAE market
- Show commitment to national development goals
Both mainland and free zone companies can apply; however, the certificate is mainly important for suppliers, contractors, and service providers in sectors like oil & gas, manufacturing, logistics, and construction.
Note: While an ICV certificate is not mandatory, it is highly recommended for companies that wish to bid for government or semi-government tenders. The certificate provides a strong competitive advantage in evaluation.
Main Conditions for Obtaining an ICV Certificate
To acquire the ICV certificate in the UAE, a company must fulfill the following:
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Audited Financial Statements.
- International Financial Reporting Standards (IFRS) must be followed.
- The Audited Financial Statements must not be older than 2 years from the certification year.
- It must be audited by a UAE-licensed audit firm.
- For newly established companies (less than 10 months old) that do not have audited financial statements, the management accounts (unaudited financial statements) for a period of up to 9 months can be used for ICV calculations. Any management accounts exceeding 9 months will require auditing.
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Local Economic Contribution.
You must provide details on your company’s UAE-related activities, including:
- Goods and services procured locally.
- Salaries paid to employees located in the UAE.
- Operating expenses incurred within the UAE.
- Depreciation is charged on assets located in the UAE.
- Net profit retained in the UAE.
The information will then be used for the calculation of your ICV score, which directly affects your competitiveness in the tenders.
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Emiratization.
- Information regarding the employment of Emiratis and the total remuneration offered must be provided.
- ICV ratings of a higher level are conferred on companies having more Emiratization.
- Training development programs for UAE nationals will be taken into consideration as well.
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Investment in the UAE.
Capital investment in local infrastructure, including machinery and technology, is awarded points in your ICV score. The more you invest in the UAE, the higher your score.
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Supplier and Subcontractor Data.
- You need to provide the names of all suppliers and subcontractors in particular, those with valid ICV certificates.
- The local suppliers with high ICV scores can also positively affect your own score.
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Legal and Regulatory Compliance.
- Your company must be legally registered in the UAE and hold a valid trade license issued by the relevant authority (mainland or free zone).
- Free zone companies are eligible to participate in the ICV Program, provided their financial statements are audited by a UAE-licensed audit firm and prepared according to IFRS.
- While some free zones may request an internal No Objection Certificate (NOC) for administrative purposes, it is not a formal requirement under the Ministry of Industry and Advanced Technology (MoIAT) ICV certification process.
What is the basis for ICV score calculation?
The ICV score is the percentage of value that your company offers to the UAE economy. The score is calculated using the following factors:
- Procurement of local goods and services
- Costs of the Emirati workforce
- Investment and manufacturing in the UAE
- Expenditure in the UAE
The more you contribute locally, the higher the ICV score will be-an added advantage for better bids in the government tenders.
Process of Getting an ICV Certificate
- Prepare the Audited Financial Statements: The financial statements must be audited and finalized in accordance with IFRS.
- Select an Approved ICV Certifying Body: Select a certifying body approved by MoIAT. Only these accredited firms can issue a valid ICV certificate.
- Complete the ICV Template: Fill out the ICV template given by the certifying body, which is based on the activities of your establishment (as a manufacturer, service provider, or trader).
- Submit Documents and Pay Fees: Send the completed ICV template, your financial statements, and supporting documents to the certifying body with payment of the applicable certification fee.
- Review and Audit by Certifier: The certifying body will review your documents, verify your data, and may want further clarification or evidence for specific claims.
- Receive the ICV Certificate: once approved, an official ICV certificate will be granted to you and is valid for 14 months from the date of issuance of the Audited Financial Statements..
Common Mistakes to Avoid
- Providing the certifying body with unaudited or old financial statements.
- Not providing proof of UAE-based spending or investment.
- Provision of incorrect data or inconsistency among financials.
- Failure to keep documentation to support ICV claims regarding suppliers.
- Non-compliance with Emiratisation requirements or failure to keep proper HR records.
Preparing accurate records and making a clear differentiation between UAE and non-UAE expenditures will guarantee a smooth certification.
How ICV Certificates Consultants Could Assist?
We are a professional service firm that has been authorized by MoIAT for verifying and issuing the ICV Certificate. Whether you’re applying for the first time or looking to improve your ICV rating, our ICV Consultants can assist you.
Being an approved ICV certifying body under the UAE’s National In-Country Value (ICV) Program, we offer:
- Complete support for ICV certification
- Strategic guidance on maximizing your score
- Fast-track processing for both mainland and free zone companies
- Expert management of financials, disclosures, and compliance matters
With our help, you can be assured that your application for an ICV will be correct and compliant with laws, thereby making it easier for you to get certified.
