Purpose of ICV Certification in the UAE
The ICV Certification is a national-level program set by the Ministry of Industry and Advance Technology. The program aims to benefit companies that route their strategic goals with the development of the UAE economy.
Most companies in the UAE have similar attributes. They can benefit from the bidding process for participating entities’ tender process by having an ICV-certified leverage over companies that are not.
The objective of the ICV program is as follows:
The companies that want to secure the ICV certification must invest, procure, and hire more within the UAE. The accreditation aims at boosting the local market and the local talent available. Hence companies wanting a better score must try to incorporate local attributes, and the spending must reflect on their financials. You might procure and hire locally but need to be made aware of the potential an ICV certification can benefit you. Our experts will provide you with the possible benefits of ICV certification for your business, help you locate the ICV attributes, and help you get a better ICV score.
Several companies are investing in the UAE and bringing investments from foreign countries. Companies that create opportunities for foreign investments are eligible to get a better In Country Value certificate score. Foreign investments leverage the company’s chance of procuring tenders through ICV certification.
Investors view the UAE as a potential market. Companies that bring in Foreign Investments play a crucial role in showcasing the opportunities UAE offers for its foreign counterparts.
Recently, the government has made it mandatory for companies to hire local UAE citizens as a part of Emiratization. Emiratization and hiring local ex-pats comprise a large percentage of the weightage in calculating the ICV score. More companies are encouraged to employ Emiratis, and the total spending on their salary, training and development forms a component of the ICV calculation score. Also, creating job opportunities and hiring local ex-pats adds to the leverage of the ICV score.
The government of the UAE provides an opportunity for companies to score well on the ICV score when a minimum of 300,000 up to 20 million is spent as the cost of recruitment and development of the local UAE citizens.
Hiring and procuring food and services locally strategically aims to increase the nation’s GDP growth. Local companies that invest in hiring and procuring locally can score better through the ICV Calculation. Companies are thus encouraged to go local rather than hire and procure from other countries. The UAE aims to create over 7000 ICV-certified companies by outsourcing 50% of its projects to local companies. The In-country value certification will see a fair and better tender management process across medical, aviation, real estate, manufacturing, and other service industries.
In-country value Certification provides considerable scoring leverage for businesses that spend on research and development within the UAE. From conducting Market Research to developing prototypes. Investing in the R&D conducted within the UAE helps develop the UAE market and, in turn, boosts the company’s GDP.
Hence the development of research and development, through setting up Research and Development facilities and encouraging foreign investors, helps diversify the economy. If you conduct research and development in the UAE but need to learn how this attribute can help you with a better ICV score, you can get in touch with one of our experts.
Read more: Easy step guide to gain your In Country Value Certificate (ICV) in the UAE
As mentioned earlier, the government of the UAE is planning to outsource most of its services to the local UAE business. To win such tenders, the ICV certificate provides a fair opportunity for companies that strive to create a better economy. 40% weighted leverage is given to companies that are ICV certified during a tendering process conducted by the participating entities.
The private sector forms a considerable part of the UAE’s GDP, and its development is directly impacted by increased GDP. Hence investors are encouraged to invest in the private sector, which provides job opportunities to local ex-pats and UAE citizens.
The participating entities that consider the ICV Certification are influential organizations such as Emirates Steel, ADNOC, Etihad Airways, Aldar Group, Etisalat, and many more. These companies have a strict tendering process. The ICV certification allows tier 2 and 3 companies to participate in bidding. They stand a chance to win the bid with an ICV Score as it is a percentage-based calculation. ICV Certificate UAE helps you understand the benefits of gaining an ICV Certification and how to improve your ICV Score. Get to know your contention ICV Certification attributes through an in-depth analysis of your financial statements