The In-Country Value certificate (ICV) score serves a significant role in business operations. A good ICV score assists corporations to gain an edge over their competitors while winning tender bids and contracts. To enhance the ICV in compliance with ICV statutory regulations and standards, businesses are advised to seek the expert services of ICV Certificate in UAE.
How is the ICV score calculated in UAE?
The ICV score is calculated based on a distinct criterion, added to it, there are different ways of calculating the ICV score for manufacturers, suppliers, and investors in the UAE.
Parameters to calculate the ICV score of a business include the following:
- Procurement of materials by local suppliers
- Hiring and training of UAE nationals
- Localizing the operations within the Oil and Gas industry
Calculation of the ICV score in UAE
The ICV score is calculated using the following formulae for different types of businesses operating inside the UAE.
1. For manufacturers: The ICV score for manufacturers is
Manufacturing cost within the UAE + Emirati cost + 60% expat cost
2. For suppliers within the UAE, the ICV score is calculated using the formula below.
Value of purchase*ICV of the supplier+ Emirati cost+ 60% expat cost
3. For investments within the UAE,
For investments within the UAE, the ICV value increases as the netbook asset value increases.
Net book value of assets within the UAE
Net book value
Read more: All you need to know about getting an ICV Certificate
Strategy to improve your ICV score in the UAE
The ICV score will help identify your business’s potential to provide locally sourced materials in less time. To increase the ICV score, corporations must follow some basic strategies as follows,
- Local resourcing: Businesses must support the local economy. Commitment to support the local economy by buying raw materials and services locally helps improve the ICV score. This means that for your business operations, all raw material sourcing, subcontracting, and any other goods and services should be sourced locally.
- Hire UAE nationals: You must be committed and work towards developing the local workforce. This means hiring and training UAE nationals will help increase your overall ICV score as you will be involved in promoting Emiratization.
- An investment inside the UAE: The next thing is that you can set up local manufacturing units and service centres. This can be done through investment in joint ventures, partnerships, and other kinds of investment initiatives that will further contribute to the local economy of the UAE.
- Community services and community engagement: As a business, you can participate in community programs and initiatives that promote local development. These can be local events, supporting local charities, or participation in social and environmental initiatives.
- Transfer of technology: The last strategy that you can implement is the transfer of technical knowledge and skills for the development of new products and services. This also means sharing your knowledge and skills with local organizations, universities, and research centres.
Overall, the above tips will help in obtaining an ICV score that will help you stand apart from your competitive suppliers while applying for tender bids and contracts for government projects.
How can an ICV consultant in UAE help you improve your ICV score?
ICV Certificate UAE play an important role in helping businesses obtain their ICV certificate as well as guiding businesses on the ways they can improve their ICV scores. They will evaluate the ICV strategy, identify the gaps, and ensure compliance with rules and regulations. We will also help you by providing training and development programs that will help build internal ICV capabilities. Therefore, contact us today and we will be glad to assist you.