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What is ICV Certificate?
The In-Country Value (ICV) certification, launched by the Abu Dhabi National Oil Company (ADNOC) in January 2018, represents a strategic initiative aimed at enhancing the economic landscape of the UAE. Effective from April 1, 2018, the ICV certification is designed to not only benefit individual suppliers and businesses but also to bolster the nation’s economy as a whole. By encouraging local procurement and supporting domestic industries, the ICV program aims to diversify the country’s Gross Domestic Product (GDP), thereby reducing dependency on oil revenues and fostering sustainable economic growth. This initiative underscores ADNOC’s commitment to promoting local content and maximizing the contribution of UAE-based suppliers to the national economy.
The National In-Country Value Program plays a pivotal role in this initiative by incentivizing local suppliers to prioritize obtaining an ICV Certificate. The certification process evaluates a company’s contribution to the local economy, focusing on factors such as the percentage of local goods and services used in operations, employment of UAE nationals, and investment in local communities. By aligning with the ICV program, businesses can enhance their competitive edge when bidding for contracts with ADNOC and other government entities, as ICV-certified companies are favored in procurement decisions. This creates a mutually beneficial scenario where suppliers can grow their businesses while simultaneously contributing to the UAE’s economic diversification goals.
This guide serves as a comprehensive resource for understanding ICV certificates in the UAE. It outlines the numerous benefits of certification, including increased visibility in the marketplace, improved chances of winning contracts, and access to a network of like-minded businesses focused on local development. Additionally, it details the eligibility criteria required for certification and offers valuable tips on how to successfully navigate the application process. By empowering businesses with the knowledge needed to obtain ICV Certification, this guide aims to facilitate their journey towards becoming key players in the UAE’s thriving economy. Continue reading to learn more about how you can take advantage of this important initiative.
What is ICV Certificate in UAE?
The In-Country Value (ICV) Certificate in the UAE is a certification issued as part of the In-Country Value Program, an initiative introduced by the Abu Dhabi National Oil Company (ADNOC) in January 2018 and implemented from April 1, 2018. The ICV Certificate assesses and certifies companies based on their contribution to the UAE’s economy. This includes their local procurement of goods and services, their investment in local employment and training, and their support for local manufacturing and supply chain development.
By obtaining an ICV Certificate, companies demonstrate their commitment to supporting the UAE’s economic goals, which can enhance their competitiveness and opportunities for securing contracts with government agencies and other participating entities like ADNOC. Tulpar Global Taxation offers comprehensive consultancy services to help businesses navigate the ICV certification process. Our expert team provides guidance on local procurement strategies, employment initiatives, and training programs tailored to enhance your company’s ICV score. With our support, you can ensure compliance with the ICV Program requirements, ultimately positioning your company for greater success in securing contracts and contributing to the UAE’s economic development.
Benefits of ICV Certification
Obtaining an In-Country Value (ICV) Certificate in the UAE not only helps businesses grow but also actively participates in and contributes to the UAE’s long-term economic vision. Its benefits include:
- Increases Business Opportunities: Companies with an ICV Certificate are often preferred in procurement processes by government entities and major corporations, such as ADNOC. This can lead to more contracts and business opportunities.
- Enhances Competitiveness: The ICV Certificate can improve a company’s competitiveness by highlighting its contribution to the local economy, making it more attractive to potential clients and partners.
- Recognizes Economic Contribution: The certification acknowledges and validates a company’s commitment to supporting the UAE’s economic objectives by promoting local procurement, creating valuable job opportunities, and attracting foreign investments into the domestic market.
- Access to Government and Major Corporate Projects: Many government and corporate projects in the UAE require or prefer suppliers with ICV Certification, providing certified companies with access to high-value projects and contracts.
- Boost Reputation and Trust: Having an ICV Certificate can enhance a company’s reputation, showcasing its commitment to supporting the UAE’s economic development, which can build trust with stakeholders and customers.
- Increase Support for Local Economy: By obtaining the ICV Certificate, companies contribute to the diversification and growth of the local economy, which can lead to a more sustainable business environment.
- Offer Incentives and Support: The UAE government and large corporations may offer incentives and support to companies with ICV Certification, including financial benefits, training programs, and preferential treatment in tendering processes.
What is The National In-Country Value Program (ICV)?
The National In-Country Value (ICV) Program is an initiative launched by the UAE government, spearheaded by the Abu Dhabi National Oil Company (ADNOC), to enhance the economic impact of businesses operating within the country. Introduced in January 2018 and effective from April 1, 2018, the program aims to boost the UAE’s economy by encouraging local businesses to increase their economic contribution to the national economy through various means.
The key objectives of the National ICV Program are to:
Diversify the Economy: Reduce dependence on imports by promoting local manufacturing and procurement of goods and services, thereby diversifying the UAE’s Gross Domestic Product (GDP).
Increase Private Sector Participation: Encourage private sector investment and involvement in strategic sectors of the economy.
Localize Supply Chains: Enhance the localization of supply chains to make the UAE’s economy more self-sufficient and resilient.
Boost Employment and Skill Development: Promote the employment and training of UAE nationals, contributing to the development of a skilled local workforce.
Encourage Technological Investment: Support the adoption and development of advanced technologies within the UAE to drive innovation and efficiency.
The ICV Certificate is a formal recognition of a company’s efforts to support these goals, making it more competitive in securing contracts with government entities and major corporations in the UAE. Through the ICV Program, the UAE aims to create a more sustainable and robust economy that benefits both businesses and the broader society.
Tulpar Global Taxation is dedicated to assisting companies in their journey to obtain the ICV Certificate. Our expert consultancy services provide insights into optimizing local procurement practices and enhancing employment and training initiatives. By partnering with us, businesses can not only achieve compliance with the ICV requirements but also strengthen their competitive edge in the UAE market, ensuring they contribute positively to the nation’s economic development.
Who Issues the ICV Certificate?
The ICV Certificate is issued by approved certifying bodies accredited by the Abu Dhabi National Oil Company (ADNOC), which initiated the program, the Ministry of Industry and Advanced Technology (MoIAT), the Department of Economic Development (DED), the Federal Tax Authority (FTA), and the Ministry of Economy. These certifying bodies collaborate to assess and verify the contributions of companies to the local economy based on the criteria set by the National In-Country Value (ICV) Program.
Who are the Strategic Partners of the National ICV Program?
The National ICV Program collaborates with several strategic partners which are mostly made up of some government agencies and leading national companies to achieve its objectives. These partners include:
1. Abu Dhabi National Oil Company (ADNOC):
As the initiator of the ICV Program, ADNOC plays a central role in its implementation and promotion across various sectors.
2. Ministry of Industry and Advanced Technology (MoIAT):
This ministry supports the program by fostering industrial development and technological advancements, aligning with the ICV Program’s goals of localizing supply chains and increasing private sector participation.
3. Department of Economic Development (DED):
The DED collaborates with the ICV Program to ensure it aligns with broader economic policies and initiatives aimed at diversifying the UAE’s economy.
4. Other Government Entities:
Various other government bodies and ministries may be involved as partners, providing regulatory support and facilitating the integration of the ICV Program into their respective sectors.
5. Major Corporations:
Key industry players and major corporations in the UAE, particularly those in strategic sectors such as oil and gas, manufacturing, and technology, often participate in and support the ICV Program by prioritizing suppliers with ICV Certification.
These strategic partners work together to promote the goals of the ICV Program, ensuring its successful implementation and widespread adoption across different industries in the UAE.
Eligibility to Obtain an ICV Certificate
To be eligible for an In-Country Value (ICV) Certificate in the UAE, a company must meet several criteria:
- Legal Registration: The company must be legally registered and operating within the UAE.
- Local Operations: The company should have significant operations within the UAE, including procurement, employment, and investment activities.
- Financial Documentation: The company must provide audited financial statements, typically for the most recent fiscal year, to verify its economic contributions.
- Compliance with Regulations: The company must comply with all relevant local laws and regulations, including labor laws, tax regulations, and industry-specific standards.
- Commitment to ICV Goals: The company should demonstrate a commitment to the goals of the ICV Program, such as increasing local procurement, employing UAE nationals, and investing in local industries and supply chains.
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By meeting these criteria, companies can apply for and obtain an ICV Certificate, which can enhance their competitiveness and access to business opportunities within the UAE.
Key Consideration for Obtaining ICV Certification in UAE
When obtaining an In-Country Value (ICV) Certificate in the UAE, companies should consider the following key factors:
- Local Procurement: Emphasize purchasing goods and services from UAE-based suppliers to support the local economy and increase your ICV score.
- Employment of UAE Nationals: Prioritize hiring and training UAE nationals. Demonstrating a strong commitment to Emiratization will positively impact your ICV evaluation.
- Investment in Local Infrastructure: Invest in local facilities, technology, and infrastructure to show your long-term commitment to the UAE’s economic development.
- Financial Transparency: Maintain accurate and up-to-date financial records. Audited financial statements are crucial for the ICV assessment process.
- Compliance with Local Regulations: Ensure full compliance with UAE labor, tax, and industry-specific regulations. Non-compliance can negatively affect your eligibility and score.
- Contribution to GDP Diversification: Engage in activities that contribute to the diversification of the UAE’s GDP, such as innovation, research, and development within the country.
- Sustainability Practices: Incorporate sustainable and environmentally friendly practices in your operations to align with broader economic goals.
- Documentation and Reporting: Prepare thorough documentation to support your ICV application, including detailed reports on local procurement, employment, and investment activities.
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By focusing on these key considerations, companies can improve their chances of successfully obtaining an ICV Certificate and benefiting from the associated business opportunities.
How to Obtain ICV Certification in UAE?
To obtain an In-Country Value (ICV) Certificate in the UAE, follow these steps:
Step 1: Prepare Financial Statements:
Ensure your company has up-to-date and audited financial statements for the most recent fiscal year. These documents are crucial for the ICV assessment. Note that ICV certification requires that the financial statements comply with International Financial Reporting Standards (IFRS).
Step 2: Choose an Approved Certifying Body:
Select one of the certifying bodies approved by the Abu Dhabi National Oil Company (ADNOC) or other relevant UAE authorities. These bodies are responsible for evaluating and issuing the ICV Certificate.
Step 3: Gather Required Documentation:
Collect all necessary documents, including your financial statements, details of local procurement, employment records, and any other relevant information demonstrating your company’s contribution to the UAE economy.
Step 4: Submit an Application:
Complete the ICV certification application form provided by the certifying body. Attach all required documentation and ensure that your application is thorough and accurate.
Step 5: Undergo the Evaluation Process:
The certifying body will review your application and assess your company based on the ICV criteria, which include local procurement, employment of UAE nationals, investment in local infrastructure, and compliance with regulations.
Step 6: Receive the ICV Certificate:
If your application is approved, the certifying body will issue your ICV Certificate. This certificate will indicate your company’s ICV score, reflecting its contribution to the UAE economy. Keep in mind that a supplier can obtain a single, combined ICV certificate if multiple branches operate within the same Emirate and share the same ownership details.
Step 7: Maintain Compliance:
To retain your ICV certification, continue adhering to the program’s requirements. Regularly update your financial statements and ensure compliance with local regulations and ICV criteria.
Step 8: Renew the Certificate Annually:
The ICV Certificate is valid for one year. Prepare to renew it annually by submitting updated financial statements and other necessary documentation to the certifying body.
By following these steps, your company can successfully obtain and maintain an ICV Certificate, enhancing its competitiveness and access to business opportunities within the UAE.
Conclusion
The ICV Certificate is an essential document for businesses operating in the UAE, especially in the oil and gas sector. The ICV certification process promotes local industries and increases the private sector’s contribution to the national GDP. By obtaining an ICV Certificate, companies can enhance their chances of winning government contracts and tenders, contributing significantly to the economic development of the UAE.
Tulpar Global Taxation is here to support your business in navigating the ICV certification process. Our expert team provides tailored guidance to ensure compliance and maximize your ICV score.
For more information on how we can assist you, contact us today to discuss your ICV certification needs and help your business thrive in the UAE market.
