The ICV (In-Country Value) certificate is an official document issued by an ADNOC-approved auditor. It reflects your company’s ICV score, which measures the extent of your business’s contribution to the UAE economy.
The score is determined based on key factors, including:
- Expenditure on local suppliers
- Employment and training of UAE nationals
- Investments within the UAE
- Profits retained in the country
In essence, the ICV certificate serves as formal recognition of the economic value your company generates within the UAE.
Is the ICV Certificate Mandatory in the UAE?
Yes, if you are looking to trade with ADNOC, government entities, or large semi-government entities, then an ICV certificate UAE is mandatory.
Many companies ask, “Is an ICV certificate mandatory in the UAE for all companies?” The answer is: no, not every company is required to have one. However, if you want to bid on tenders, contracts, or projects issued by ADNOC and other government-related entities, then the certificate is a must.
For example, irrespective of whether your company is based in Dubai, Abu Dhabi, or Sharjah, without an ICV certificate, you will be denied substantial procurement opportunities in Dubai or Abu Dhabi.
ICV Certificate Requirements: The Mandatory Documents
In order to apply for the certificate, you’ll have to collect and submit a set of documents. These ICV requirements are designed to give auditors a clear picture of your company’s financial well-being and its contribution to the local economy.
This is what you should prepare:
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Audited Financial Statements
Your latest audited financial statements are the basis of the ICV procedure. These statements must:
Be prepared according to International Financial Reporting Standards (IFRS).
Cover a financial period of 12 months.
Be audited and signed by a licensed audit firm in the UAE.
Without these, no auditor can proceed with your ICV calculation.
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Detailed Payroll Records
Payroll records are needed to verify your company’s Emiratization efforts. This includes:
Number of UAE nationals employed.
Training and development programs for local employees.
Documentation verifying their roles and contributions.
Employment of and retention of UAE nationals have a direct bearing on your ICV score, so these records are crucial.
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Procurement and Suppliers Records
ICV calculation also takes into account how much your business spends on local suppliers as opposed to imports. So, you need to present:
Supplier invoices.
UAE-based supplier agreements.
Purchase records that clearly show local procurement.
These records show that your company is actively involved in adding value to local supply chains.
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Investment Records in the UAE
If your company has invested in facilities, technology, or infrastructure in the UAE, those are facts that must be documented. They are:
Ownership deeds or rental contracts of offices, warehouses, or factories.
Investments in technological upgrades were made in the UAE.
Proof of the capital investments that the local economy receives.
These investments work to enhance your ICV score.
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Expatriate Payroll Costs
Although expatriate work is common in the UAE, your company must also report expatriate payroll expenditures. This is for transparency in the ratio of your labor force that is local versus foreign.
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Company Ownership and Shareholding Structure
Some auditors will request details of company ownership and shareholding information, especially if the company is partly owned by the UAE. This is to align the ICV calculation with your economic contribution to the country’s economic model.
Why Are These Documents Important?
Each document required for the ICV certificate UAE serves a purpose:
- Financial Statements – Verify the overall health and transparency of your firm.
- Payroll Records – Measure Emiratization initiatives.
- Supplier Records – Illustrate commitment to local procurement.
- Investment Proof – Evidence of reinvestment in the UAE economy.
- Expat Costs – Balances the local and expatriate employee contribution.
What if Documents are Missing?
If your company fails to provide the necessary documents, the auditor may:
Delay issuing your certificate.
Provide a low ICV score due to incomplete data.
In worst cases, reject your application completely.
The ICV Certificate UAE Application Process
Now that your documents are prepared, the process is straightforward:
Submit audited financial statements and supporting documents.
Assign an ADNOC-approved auditor.
The auditor verifies your details and calculates your score.
You receive your ICV certificate, which is valid for 14 months from the financial statement date.
Seek the Expert Services of Top ICV Consultants in the UAE
Obtaining an ICV certificate in the UAE is more than a matter of regulatory compliance; it represents a strategic opportunity. By fulfilling the ICV certificate requirements and ensuring all necessary documentation is in place, your business demonstrates its commitment to the economic development of the UAE. With thorough preparation and expert guidance, obtaining the certificate can open doors to larger contracts, strengthen your credibility, and support long-term business growth.
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FAQs
- What is an ICV certificate in the UAE?
An ICV certificate UAE is an official document issued by an ADNOC-approved auditor that shows your company’s ICV score. It reflects how much value your business adds to the UAE economy through local hiring, procurement, and investments.
- Is an ICV certificate mandatory in the UAE?
Yes, the certificate is mandatory if your company wants to participate in ADNOC and other government tenders. Without it, your bids may not even be considered. For businesses not working with government projects, it’s optional but still beneficial for building credibility.
- What documents are required to apply for an ICV certificate?
The ICV certificate requirements include audited financial statements, payroll records, supplier invoices, investment documents, expatriate payroll details, and ownership structures. These are reviewed to calculate your ICV score.
- How long is the ICV certificate valid?
An ICV certificate is valid for 14 months from the date of your audited financial statements. Once it expires, you’ll need to apply for a renewal with updated documents.
- What happens if I don’t have all the documents?
If your documentation is incomplete, the auditor may delay or reject your application. In some cases, a lower ICV score is given. Preparing documents in advance with the help of professional auditors in Dubai ensures a smooth certification process.
