The Financial Benefits of Having a Strong ICV Score
To promote Emiratization, localize supply chains, and push economic growth, the government of the United Arab Emirates launched the ICV certificate UAE program. A good ICV score helps UAE businesses succeed in a competitive market and support the national economy, thereby helping them financially.
Started by ADNOC in 2017, the ICV project was later extended by MoIAT, a division of the Ministry of Industry and Advanced Technology. It assesses how companies help the UAE economy by means of local service spending, manufacturing investment, local sourcing, and Emiratization. Higher ICV ratings not only offer companies preference in government contracts but also qualify them for tax benefits and subsidies.
Obtaining Profitable Government Contracts: Many semi-government and government organisations want companies looking for contracts to possess an ICV certificate. Companies with a high ICV score have a competitive advantage that helps them obtain profitable projects. For example, under its ICV program, ADNOC has given contracts totaling billions of dirhams to more than 4,000 certified vendors.
Tax saving and grants: Businesses with high ICV ratings may be eligible for grant money set aside for developmental goals and significant tax benefits. These financial advantages increase profitability and lower operational expenses.
Enhanced market position: Investing savings back into basic operations might help businesses increase capacity and improve their market position. A stronger ICV score builds trust and attracts new clients who value congruence with national economic goals.
Cost Reduction: Localizing the supply chain reduces import reliance, hence reducing sourcing costs. Apart from cost reductions, local suppliers and SMEs gain from this simplified strategy.
Support for Long-Term Development: A high ICV score benefits businesses financially and guides them toward long-term success. Grants allow companies to investigate novel ideas; tax advantages free money for infrastructure or technical spending.
Competitive Advantage: In a competitive market like the UAE, companies with strong ICV ratings stand out as they show dedication to the economic goals of the nation. This benefit fosters teamwork and partnerships with significant companies.
Federal legislation and rules in the United Arab Emirates control the ICV certification procedure. Accreditation seekers must fulfill certain criteria:
If suppliers want to raise their ICV score, they must make sure their contributions to manufacturing or innovation investments, Emiratisation initiatives, and local procurement are well recorded.
The ICV initiative has greatly improved the economic resilience of the United Arab Emirates:
To maximize financial gains:
A strong ICV score is not just a compliance tool; it gives UAE companies access to financial growth and sustainability. Companies that follow the objectives of the program will be able to assist national development projects like Vision 2030, save a significant lot of money, get government contracts, and improve their market status. Companies operating in the United Arab Emirates have a strategic need and a chance to prosper in one of the most dynamic economies in the world by investing in raising their ICV score.