Having an ICV (In-Country Value) Certification and maintaining a high ICV score is crucial for businesses in the UAE. This certification has become increasingly important, especially with the implementation of various economic projects that offer benefits to companies of all sizes through tenders and bidding processes. By obtaining ICV certification, businesses gain a competitive edge when bidding for tenders with participating entities such as ADNOC, Aldar, and Emirates Steel.
Determinant to calculate ICV Score
The calculation of the ICV score is based on the percentage contribution rather than the total spending. This means that tier 2 and tier 3 companies have an equal opportunity compared to tier 1 companies. All certified companies can actively participate in the bidding process.
Read more: Strategies to enhance ICV score in UAE
Significance of ICV Certificate
Possessing the ICV certificate provides significant leverage, as it gives up to a 40% advantage in the bidding process. While companies without the ICV certificate can still participate, their ICV score will be considered as “zero.” On the other hand, ICV certified companies receive up to 40% weightage in the commercial evaluation of the bidding process. This strategic goal supports the future development of the country’s economy by promoting fair competition and creating opportunities for both local UAE residents and expatriates.
Additionally, ICV certification allows businesses to be recognized as approved suppliers and vendors within the Ministry of Industry and Advanced Technology’s (MoIAT) database. This grants priority access to various procurement requirements within participating entities, even for projects that are not publicly posted as tenders.
ICV requirements for Businesses
Whereas distinct certifying agencies for ICV certification offer competitive quotes for the certification process, businesses must ensure their financial statements are completed and audited before applying for ICV certification. Audit service providers like Farahat and Co in Dubai, the UAE, can assist in meeting the ICV requirements and improving the ICV score.
The ICV certification process has been digitalized, utilizing a newly launched platform that incorporates blockchain technology and artificial intelligence. This online process enables companies to complete the application and certification, check their application status, and receive the ICV certification within a two-week timeframe. The platform ensures high-quality data collection, making the application process more accessible.
Benefits of ICV Certification
Being ICV certified contributes to the growth of the UAE’s economy by emphasizing five key attributes: investment, Emiratization (hiring of UAE nationals), expat hiring, revenue generated within and outside the UAE, and bonuses for Emirati headcount, investment growth, and revenue generated from outside the UAE. Lowering costs and procuring locally through ICV certification supports local businesses and stimulates economic development, reducing dependence on foreign companies.
Companies aiming for a better ICV score must prioritize local hiring, increased investment, and procurement within the UAE. These factors apply not only to local companies but also to foreign companies seeking ICV certification. Aligning with the UAE’s strategy to boost the economy, emphasizing local participation can have a positive impact on job creation.
Scope of ICV Certification
ICV certification is not limited to a specific sector but encompasses various industries, including heavy machinery, medical, aviation, telecommunications, real estate, and more. This broad applicability provides certified companies with opportunities to apply for tenders across different sectors.
Seek the expert services of ICV Consultants in UAE.
In summation, obtaining ICV certification is essential for UAE businesses to thrive in the competitive market. It offers advantages in the bidding process, access to the MoIAT database, and participation in the country’s growing economy. By prioritizing local hiring and investment, companies can enhance their ICV score and contribute to job creation and economic development. Therefore, contact a trusted ICV Consultant in UAE and we shall be glad to assist you.