Is an ICV Certificate Mandatory in UAE?

ICV (In-Country Value) certification measures how much economic benefit a company creates inside the UAE through local sourcing, investment, Emiratization, and related activities. The ICV certificate UAE is issued after an audit of a company’s local expenditure, investment, and employment practices. The ICV score helps public and private sector buyers prioritize suppliers who contribute more to the UAE economy. 

How the ICV Score is Calculated — five core attributes

ICV scoring evaluates several components that together determine your final ICV score. The primary attributes used in the calculation are:

• The cost of manufacturing goods/cost of third party (which depends on whether you are a manufacturing company or service provider).
• Investment in the UAE- capital expenditures, plant and equipment, and domestic investments.
• Emiratization expenses- recruitment, education, and training of the UAE nationals.
• Expat contribution- organized recruitment based on the expatriate workforce in the UAE, where necessary.
• Bonus factors – e.g., revenue made outside the UAE, but to local operations, increase of local investments, or employ more UAE citizens.

Why Businesses Need an ICV Certificate in the UAE?

• Competitive bidding advantage: ICV-employed businesses may receive a commercial evaluation boost (to 40%), which increases their chances of winning tenders.
• Government outsourcing accessibility: The UAE has the goal of expanding local procurement; public institutions intend to outsource a significant part of their expenditure in the country, which opens more opportunities to the vendors adhering to the standards of ICV.
• Long-term positioning: The initial movers establish credibility and relationships with suppliers that accumulate with future rounds of bidding.

Practical next steps

1. Assess your activities: Determine whether your business is categorized as a goods manufacturer or a service provider — this affects which cost lines are eligible.
2. Gather records: Compile invoices, payroll records, investment documents, lease agreements, and utility bills that demonstrate local spend and hiring.
3. Get expert support: Consider engaging certified ICV auditors or consultants who specialize in preparing the ICV template and guiding the audit process.

How Top ICV Consultants in the UAE Can Assist?

To seamlessly obtain ICV certification in UAE in compliance with regulations, businesses are advised to seek the expert services of top ICV Consultants in the UAE. Contact us today, and we shall be glad to assist you.

Frequently Asked Questions

Are all UAE companies legally required to have an ICV certificate?

No– not every company in the present day has to be of this nature. Nonetheless, most government agencies and large tenders rely on ICV scoring in the award of their procurement, and that ICV certification may be well imposed as being competitive in these tenders. 

What is the weight of an ICV certificate on the tender evaluation?

ICV-approved suppliers may enjoy an up to 40 percent advantage in the commercial assessment section of the tenders, which may be a decisive factor in the competition. 

Who is to seek the ICV certification: manufacturers or service providers?

Both. Manufacturers are evaluated based on local manufacturing and sourcing expenses; service providers and local expenses are evaluated based on the third-party costs and local expenses. The scoring methodology depends on the type of activity of your company. 

What are the documents needed to support an ICV application?

The typical supportive documentation is local invoices, payroll documentation, lease agreements, utility bills, contracts with local suppliers, and proof of local investment and Emiratization efforts. The certification will require evidence on the part of the auditors.