ICV CERTIFICATION SERVICE
Arabian Wingz is a leading provider of ICV (In-Country Value) Certificate Consultation Services in Dubai, assisting businesses across the UAE, including Abu Dhabi and Sharjah, to navigate the requirements for participating in government tenders and contracts by measuring and optimizing their local value-added through expenditures on local goods, services, employment, and investment.
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What is ICV Certificate?
The In-Country Value Certificate program was undertaken by Abu Dhabi National Oil Company (ADNOC) and has been in operation since April 1, 2018. All UAE-based suppliers of goods must get an In-Country Value Certificate from the ADNOC ICV Certificate agency in order to participate in the program. In order to deliver the ICV, the suppliers must also acquire the computed ICV score that shows their contribution to the prior fiscal year. Even if their ICV score is zero, suppliers who are not curious about obtaining the ICV Certification can still participate in the ADNOC group tender.
One of the foundations of ADNOC’s purchase process is ICV in the United Arab Emirates. All awarded contracts are subject to review. Suppliers’ ICV obligations will vary depending on whether they deal with ADNOC directly or indirectly. Depending on how they interact with ADNOC, suppliers must obtain an ICV certification in the UAE and make an ICV advancement plan there, or they can enlist the aid of contractors.
Eligibility Criteria to Get an ICV Certificate in UAE
- Valid Business Registration: Companies must hold a current and valid trade license, registered with the relevant UAE government authority.
- Physical Presence and Operation: The business must maintain a physical operational presence within the UAE, actively providing its products or services.
- Industry-Specific ICV Compliance: Organizations must fulfill the unique ICV requirements tailored to their specific industry sector, which may include local content targets and Emiratization goals.
- Independent Audit Verification: A mandatory independent audit, conducted by an approved certifying body, is required to assess performance and calculate the official ICV score.
- Adherence to Industry Standards: Organizations have to complete the particular ICV demands for their sector.
- Contribution to Local Economy: Obtaining certification guarantees that companies are accountable for the evolution and enhancement of the regional economy.
Companies that Require ICV Certification
According to the ICV criteria, businesses both inside and outside the United Arab Emirates are eligible to apply for an ICV Certification. All businesses who want to apply for governmental and semi-governmental procurements must be ICV certified. When evaluating tenders, the ICV factor is given a particular amount of weight. This is not a necessary condition, though.
As a crucial component of their contract evaluation and award process, Tier 1 suppliers—those who directly supply goods or services to the Program’s Partners—may be required to disclose their ICV Score. To maintain competitiveness in their tenders with Tier 1 suppliers, suppliers in Tier 2 and lower categories must also show their ICV Certificates.
Benefits of Having ICV Certification for Your Business in UAE
ICV certification takes a few things into account. These include Emirati employment, foreign-sourced money, revenue generated (outside the United Arab Emirates), increasing investment, etc. A new business line that should be supplied from the UAE has emerged as a result of the program.
Enhanced Access to Government Contracts
ICV certification is a prerequisite for participating in UAE government tenders, opening doors to significant market opportunities.
Strengthened Competitive Edge
Possessing an ICV certificate distinguishes your business, demonstrating a commitment to local economic contribution, which is a crucial advantage in competitive bidding.
Ensured Regulatory Compliance
Obtaining ICV certification guarantees adherence to mandatory local regulations for businesses engaging in government contracts.
Contribution to National Economic Growth
The ICV program fosters the use of local resources, employment, and investment, directly contributing to the UAE’s economic development.
Stimulation of Local Supply Chains
ICV certification encourages the development of local supply chains, creating new business opportunities within the UAE.
Increased Private Sector Participation and Diversification
ICV certification increases the involvement of the private sector, diversifies the GDP, and localizes the main components of the supply chain.
Support for SMEs Growth
ICV certification facilitates the expansion and development of small and medium-sized enterprises (SMEs) by stimulating localized supply chains.
Preferential Treatment in Federal Contracts
Holders of ICV certification are eligible to take advantage of the advantages of the contract they receive from partner businesses and federal bodies.
Key Requirements for ICV Certification
To obtain the ICV certification, providers must meet a number of conditions outlined by the MoIAT. Suppliers that are unclear about the procedure might seek advice from Dubai-based companies that offer ICV certification services. The following criteria must be met in order to receive an ICV certificate in the United Arab Emirates –
- In accordance with International Financial Reporting Standards (IFRS), suppliers are required to produce audited financial statements. The report must be completed within two years of the year of certification. Furthermore, a certified auditor should sign the report.
- A company's ICV certificate needs to be acquired separately for each of its legal entities. Nonetheless, businesses with several branches within the same Emirate that encounter the same functions and have the same ownership can apply for a combined ICV certificate under their corporate name.
- A company should have a separate accounting record for its production and commercial activities if it holds both licenses. The MoIAT certification bodies will issue the ICV for each license separately.
- A company should have a separate accounting record for its production and commercial activities if it holds both licenses. The MoIAT certification bodies will issue the ICV for each license separately.
- Management Accounts may be used for up to nine months during the ICV certification process by newly formed businesses (less than ten months old) and entities without audited financial reports.
- The ICV certificate's numbers must match the most current audited financial report of the provider.
- The ICV certificate will remain in effect for 14 months after the audited financial accounts are released.
GUIDELINES
Only a group of recognized and authorized certifying organizations in the United Arab Emirates are able to grant ICV Certification.
A supplier would require a different ICV certificate for each business license they hold when requesting a certification. Each company license will be treated as an independent legal entity. A single combined certificate will be adequate if a company has several branches operating under a single license.
The applicant is needed to fill out ICV Certification Templates.
All of the data entered in the template must come from the most recent audited financial statements of a business that complies with IFRS. No more than two years should pass between these financial statements.
Companies that are less than ten months old and do not yet have audited financial information may use data from their control accounts.
No more than nine months should pass between managing accounts. If so, their usage will be contingent upon their being audited by an authorized audit firm.
Following receipt, the certificate has a 14-month validity period (from the date of issuance of audited financial accounts). Businesses have one more chance to seek certification before this period expires. They might also make use of the same financial statements. Receiving an updated certificate, however, won’t make the previously received certificate any less legitimate.
A corporation cannot change certifying bodies for the life of their certification (unless they have a valid cause) once they have chosen an Empaneled Certifying Body to confirm them for certification.
A company’s application must include all of its expenses and income from the previous fiscal year.
The ICV Template requires all figures to be in AED. Only when specifically stated can an exception be made.
Purchases made by the business during that year may be taken into consideration in the event that the company is unable to provide consumption details (specified by invoice and vendor).
Any computations and assumptions included in the ICV Template must adhere to the guidelines’ recommendations.
For all supplied data to be thoroughly analyzed, each figure that the supplier presents must be supported by pertinent documentation. A chosen representative of the participating units may ask for a quality assessment of any ICV Certificate Template under examination by the Certifying Body at any point during the verification procedure. Any necessary information must be provided to the representative upon request from the supplier and certifying authority.
Companies that are found to have been negligent or to have tampered with their submissions will be subject to sanctions. One of these sanctions may be a prohibition that stops them from doing business with ADNOC.
A business can start bidding to participating companies after obtaining certification. The certifying company’s ICV score will define the precise advantage that is gained during the bidding process.
