ICV Certification Dubai – Step-by-Step Guide For UAE Companies

The In-Country Value Certification program is a cornerstone of the UAE’s economic strategy, set to stimulate local economic evolution, creating job prospects for Emiratis, and diversifying the national GDP. While initially led by ADNOC, the program has grown nationwide and is overseen by the Ministry of Industry and Advanced Technology, making an ICV certification Dubai a crucial credential for doing business with government and semi-government units in the Emirates.

Understanding the ICV Program and Its Importance

A government-run program called the National ICV Program gauges how much a company’s operations contribute to the economy of the United Arab Emirates. It is essentially an evaluation of how much value a business adds locally through its employment, investment, and spending policies.

Why is an ICV Certificate Dubai Essential?

1. Competitive Advantage in Tenders – Dubai’s ICV certification is not the essential requirement for all tenders and campaigns, but still, obtaining an ICV certificate UAE has conferred a huge competitive advantage and also taken the lead during the evaluation process of the tenders of the Government and semi-government projects across various entities like ADNOC, ADDED, Dubai Ports, and so on.

2. Economic Alignment – It tags your company as a dedicated partner to the UAE’s national vision for the sustainable economic development and localization of the supply chain.

3. Support for SMEs – The program is a constant aid to Small and Medium Enterprises (SMEs) as it allows them to get larger government contracts, which in turn creates more demand for the local business community.

4. Supplier Preference – When the government agencies with large budgets are purchasing goods and services, they give preference to companies with high ICV scores, which is the policy of ensuring that the money spent is circulated within the local economy.

Key Components of the ICV Score Formula

The ICV score is a quantifiable metric computed utilizing a unified formula. Comprehending these elements permits organizations to strategically adjust their procedures to enhance their score.

Component	Weightage (Approximate)	Description & Key Consideration
Manufacturing & Third-Party Cost	50%	Measures the cost of goods and services incurred within the UAE compared to total cost. Includes local sourcing and services. Payments to ICV-certified suppliers gain better weightage.
Investment	25%	Based on the net book value (NBV) of assets owned within the UAE (e.g., property, plant, equipment, and IT infrastructure).
Emiratisation	15%	Contribution based on the cost of salaries, training, and benefits provided to Emirati employees.
Expat Contribution	10%	Related to the number and cost of expatriate employees within the entity.
Bonus	5%	Additional points for factors like revenue generated from outside the UAE (exports), growth in NBV, and specific Emirati headcount targets.

The higher the ratio of your business expense that stays within the UAE through local sourcing, employment, and capital assets, the higher your ICV certificate Dubai score will be.

Pre-Requisites for ICV Certification

Companies have to pass some primary conditions before they can start the certification process.

A. Audited Financial Statements (FS)

• Requirement – The fundamental information for the ICV score should come out from the company’s Audited Financial Statements (FS).

• Validity – The FS should be made in compliance with the International Financial Reporting Standards (IFRS).

• Age – The FS should usually not exceed two years from the date of the ICV certification application. The ICV certificate resulting from this will be valid for 14 months from the date of issue of the Audited Financial Statements used in the assessment.

• New Companies – Newly formed companies (less than 10 months old) without audited financial statements may use management accounts (up to nine months), which may need auditing if they cover a period longer than nine months.

B. Separate Legal Entities

• An ICV certificate should be acquired for each individual lawful entity (Trade License).
• However, if a company has numerous branches in the same Emirate with the same ownership and business activities, a single, integrated ICV certificate can be given for those branches.

Step-by-Step Guide for ICV Certification Dubai

The ICV certification services procedure is standardized in the United Arab Emirates and is handled through the MoIAT platform with the help of authorized Certifying Bodies.

1. Data Preparation and Document Gathering

This is the most crucial internal move. The company needs to collect and reconcile all financial and functional data necessary for the ICV calculation template. critical internal step.

Required Documents Include –

• Valid Trade License.
• Latest Audited Financial Statements (IFRS Compliant).
• Detailed breakdown of goods and services purchased (local vs. international suppliers).
• Wage Protection System (WPS) reports or employee payroll details (crucial for Emiratisation and Expat Contribution).
• Details of local capital investments and asset registers.
• Bank account details for verification.

2. Selecting an Approved Certifying Body

MoIAT certifies a limited number of audit firms (Certifying Bodies) that are officially recognized to carry out the verification and issue the ICV certificate UAE.

• Procedure – The organization needs to approach different certifying bodies that are already approved in the list to get their quotations for ICV certification services.
• Decision – Choose a body based on its quote, knowledge, and return time. It is necessary to sign an engagement letter with the selected firm.

3. Completion of the Official ICV Template (Scorecard)

The supplier (the applicant company) is obliged to completely and correctly fill the standardized ICV template (ICV Scorecard), which MoIAT provides.

• Input – The template requires the company to put figures directly taken from their audited financial statements into the areas designated for Manufacturing/Third Party Cost, Investment, Emiratisation, and so on.
• Support – ICV certification services providers usually help their customers to the fullest extent when it comes to making their financial data correlate with the template so that they can get the full score of the ICV legally allowed.

4. Verification and Audit by the Certifying Body

The process is taken over by the Certifying Body in order to validate and check the correctness of the provided data.

• Technical Review – They perform a technical review of the filled ICV template along with the entire set of supporting documents (invoices, WPS reports, asset registers).
• On-Site Audit (if necessary) – A certifier may conduct an on-site visit to determine the presence of assets, verify stock, and check operational processes, depending on the complexity and size of the company.
• Factual Finding Report (FFR) – The Certifying Body drafts an FFR that outlines its method of discovery and legitimizes the computed ICV score.

5. Issue of the ICV Certificate

The Certifying Body, after being convinced with the documentation and audit results, sends the final FFR to the MoIAT system.

• The system creates and issues the official ICV certificate UAE, with the verified ICV score included.
• The certificate, which is signed by the Certifying Body, is then available for use in tender submissions.

Cost and Validity of the ICV Certificate

1. ICV Certification Cost

The ICV certificate does not have a predetermined government cost. The most considerable expense is the fee for an authorized Certifying Body’s professional ICV certification services (the entire process of auditing and verification).

• Variance – This price is usually dependent on the company’s size and turnover, as well as the complexity of its financial statements and business structure. It is advisable for companies to seek quotations from various bodies for comparison purposes.

2. Validity and Renewal

• Validity – An ICV certificate remains valid for 14 months starting from the date of issuance of the Audited Financial Statements that were used for calculating the score.
• Renewal – For the renewal of the certificate, the company has to go through the same process with their most recent Audited Financial Statements, and then the new data will be submitted to the Certifying Body for a new audit.

Strategic Advice for Maximizing Your ICV Score

The ICV program should be seen by companies as a strategic opportunity rather than a burden. To get a better score and become more competitive –

1. Local Procurement – Sourcing goods and services from ICV-certified suppliers should be given priority. This will result in a higher ICV benefit for your business.

2. Emiratisation – Invest heavily in the recruitment, training, and development of the Emirati workforce since their salary is a big contributor to the score.

3. Investment – If possible, invest in physical assets (machinery, real estate, and major IT infrastructure) in the UAE to increase the Investment component.

4. Export Revenue – The focus should be on generating sales revenue from outside the UAE (exports), as this gives a potential bonus to the overall score.

Conclusion

The process of getting an ICV certification Dubai or ICV certificate Abu Dhabi is a very important strategic move for any company that wants to get long-term contracts and cooperate with the UAE’s economic plan. Although the procedure is very detailed and requires strict adherence to IFRS-audited financials and MoIAT guidelines, the competitive advantages that come with a high ICV score in the UAE’s robust public sector market are priceless. Utilizing ICV certification services from a respectable auditing firm is the best way to go through the process in an accurate and fast manner.