The National In-Country Value (ICV) certification program was launched by the Ministry of Industry and Advanced Technology (MOIAT) in the UAE to promote local content and boost the contribution of suppliers to the national economy. Through this program, suppliers are issued an ICV Certificate UAE which evaluates their contribution to the local economy. Suppliers with a higher ICV score are then given preference in government contracts and purchases. This article focuses on the calculation of ICV scores in the UAE and ways for suppliers to improve their ICV scores during the calculation.
The ICV score is calculated using the following formula:
ICV Score = (Total ICV Value + Emirati Cost + 0.6 x Expat Cost) / (Total Cost) x 50%
where:
The following factors can affect a supplier’s ICV score:
The contribution of each factor is calculated as a percentage of the supplier’s total eligible costs. These individual percentages are then added to determine the overall ICV score.
Suppliers can improve their In-Country Value (ICV) score by taking several steps to increase their contribution to the UAE economy, which includes:
One of the most effective ways to improve the ICV score is to increase the percentage of goods and services procured from within the UAE. This can be done by:
By increasing local content, suppliers can reduce their reliance on imports and support the growth of the UAE’s economy.
Suppliers can also improve their ICV score by making investments in the UAE. This includes investments in:
By investing in the UAE, suppliers can demonstrate their commitment to the country and its economic development.
Increasing the number of Emirati employees and the percentage of Emirati employees in the workforce can also help suppliers improve their ICV score. This can be done by:
By hiring Emirati employees, suppliers can contribute to the UAE’s goal of Emiratization and develop a more diverse and inclusive workforce.
Suppliers can reduce their ICV score by reducing the number of expatriate employees and the percentage of expatriate employees in the workforce. This can be done by:
By reducing their expatriate workforce, suppliers can reduce their costs and contribute to the UAE’s goal of increasing Emiratization.
Increasing the percentage of revenue generated from outside the UAE can also help suppliers improve their ICV score. This can be done by:
By increasing revenue from outside the UAE, suppliers can diversify their customer base and reduce their reliance on the domestic market.
Finally, suppliers can also improve their ICV score by meeting the criteria for bonus points. These criteria include having a high percentage of Emirati employees and investing in research and development.
The ICV Certification program is a valuable tool for businesses that want to increase their contribution to the UAE economy. By obtaining an ICV certificate in UAE, suppliers can demonstrate their commitment to the UAE and its economic development goals.
Suppliers who are looking to improve their ICV score should consider seeking the guidance of ICV Certificate Consultants in UAE. These consultants can provide expert advice and support to help suppliers navigate the process of obtaining an ICV Certificate UAE and implement strategies to improve their ICV score.
Read More: How to Calculate ICV Score?