In Country Value Program (ICV)
The In-Country-Value Program (ICV) pioneered by ADNOC in 2018 is an initiative designed to achieve the optimum value from our nation’s oil and gas resources to stimulate the UAE’s economic growth and diversification.
Recently, the Abu Dhabi Department of Economic Development (ADDED), Abu Dhabi National Oil Company, Abu Dhabi Ports Company PJSC, Aldar Properties PJSC, Emirates Nuclear Energy Corporation, and Mubadala Investment Company (Participating entities) also have collaborated in this program by implementing a unified In-Country Value (ICV) Program, Rev. 3.0.
The primary objectives of ICV are:
- Emiratization: Generating more employment opportunities for Emiratis in the private sector
- GDP Diversification: More goods and services are sourced within the country, in a move to support diversification
- Strategic considerations: Critical parts of the value chain are localized for certain categories of businesses
Why ICV Certification
- ICV score is an integral part of bid evaluation of the participating entities and it will give added weightage for the suppliers and vendors in the award process.
- Entities who are indirectly connected with the tenders also benefit from the ICV certification program; as ICV-certified supplier “spend” that remains within the UAE or contributes to the UAE economy, is considered for ICV calculation purpose.
Key considerations in ICV Certification
- ICV certification is based on the last audited IFRS financial statements of the entities and shall not be older than 2 years from the certification year.
- For newly established companies (less than 10 months old), who do not have audited financial statements, the management accounts for a period of up to 10 months can be considered for ICV calculations.
- The ICV certificate shall be valid for a period of 14 months from the date of issuance of audited financial statements.
- ICV Scores are calculated using a pre-defined methodology by assessing the economic value added within the country for the goods or services provided by the entity. Following areas are taken into the consideration for the calculation of ICV Score:
How we can help?
HLB HAMT is empaneled as one of the certifying bodies to issue an ICV Certificate with the respective authorities. Along with issuing the certificate, we work with clients to understand their requirements, help them with ICV calculation and recommend the required improvements in the business as well as operational activities. We also make it a point to constantly update our clients on the latest information regarding ICV program and suggest policy changes, if required.
Frequently Asked Questions – ICV
What is the National in-country value program?
The National In-Country Value Program (ICV) is a UAE government program that aims to boost economic performance and support local industries by redirecting higher portion of public spending into the national economy. The National ICV is a certificate issued to suppliers in which their contribution to the local economy is evaluated. The certified suppliers are then given an advantage during the award of contracts and purchases based on their ICV score.
Who are the Participating entities of the ICV programme in UAE?
All the entities who have implemented the In-Country Value (ICV) program jointly are referred to as “Participating Entities” and include the Abudhabi Department of Economic Development (ADDED), ADNOC, ALDAR, MUBADALA, Etisalat, Emirates Nuclear Energy Corporation, Etihad Rail, Shurooq, EDGE. ICV Certificates are used by the Participating entities in evaluating their tenders for procurement.
What are the economic benefits of the ICV Certificate in UAE?
As a part of the ICV program, more goods and services are sourced within the country, in a move to support UAE’s GDP diversification. Also, the Program will generate more employment opportunities for Emiratis in the private sector and critical parts of the value chain will be localized for certain categories of businesses.
How can suppliers join the ICV Program in UAE?
To join the ICV Program, suppliers need to follow few simple steps:
- Issue audited financial statement based on International Financial Reporting Standards (IFRS) (management accounts for new established entities less than 10 months.)
- Fill in the ICV template as per the guidelines.
- Approach one of the authorized certifying bodies for evaluation.
- Once the ICV certificate is received, a supplier can submit it to participating entities.
Who issues the ICV Certificate?
Ministry of Industry and Advanced Technology (MOIAT) has authorized certain professional firms called “Certifying Bodies” to verify and issue the ICV certificate.
HLB HAMT is one of the authorized certifying bodies for the ICV certification.
What is a Certifying body as per ICV program?
A Company who has been authorized by the MOIAT for verification of Suppliers’ ICV certificate application and issues the ICV certificate.
What does an ICV score represent?
ICV Scores are calculated using a pre-defined methodology by assessing the economic value added within the country for the goods or services provided by the entity. The score is determined after taking the below into consideration and is described as a percentage:
- Goods manufactured/ Third party spend
- Expatriate contribution
- Bonus- Exports, Emirati headcount and investment growth
Is the ICV certificate limited to small and medium-sized companies only or large as well?
No, the ICV certificate is not limited to company size.
What are the requirements for issuing an ICV Certificate?
The entity needs to have audited IFRS financial statements which shall not be older than 2 years from the certification year and other requirements requested by the certifying bodies.
What is the duration/validity of the ICV Certificate in UAE?
The certificate’s validity is 14 months from the date of issuance of the company’s audited financial statements. The supplier can get recertified during the validity of the ICV certificate if he chooses to, using the same audited financial statements, but the validity of 14 months from the first issue will remain.
Is ICV Certificate a mandatory requirement in UAE?
ICV certification is required for all companies that wish to apply to governmental and semi-governmental procurements. The ICV factor accounts for a certain weightage in tender evaluation. However, this is not a mandatory requirement.
Can companies located in UAE-free zones obtain an ICV Certificate?
Yes, free zone companies can obtain an ICV certificate.
If the company has four branches in 4 emirates, is it possible to issue one ICV Certificate?
Branches can be combined if they exist in one emirate and their activities are similar. For the branches in different emirates, a certificate for each license must be obtained.
What are the critical considerations for obtaining an ICV Certificate in UAE?
Below are the critical considerations for the national ICV program:
- Audited financial statements, prepared under IFRS and not older than two years from the certifying year and signed by a licensed auditor.
- ICV certificate shall be obtained for each company’s license (legal entity). However, if a company has different branches in the same emirate with identical activities and ownership, then a combined ICV certificate will be issued.
- For companies with manufacturing and commercial licenses, all the accounting records must be split between manufacturing and commercial activities; ICV will be issued for each license separately.
- For companies that are less than 10 months old and do not have audited financial statements, management accounts for a period of 9 months can be used for ICV certification purposes.
How much does it cost to obtain an ICV Certificate in UAE?
The fee for an ICV certificate varies depending on the size of the company and the procedures required to be performed.
Is ICV a national program?
ICV is a national program implemented of Ministry of Industry and Advanced Technology as it aims to support the national industry and redirect amounts spent in procuring goods and services towards the national economy.
Latest insights, case studies and news from across the network
Audit Compliance in the UAE: Understanding Regulatory Requirements
Have you ever considered why companies seek auditing services in the UAE? Numerous factors drive the need for an audit, most of which can be categorized into three main reasons:
Understanding Audit Services in the UAE: A Comprehensive Guide
Imagine you are an entrepreneur or business owner overseeing a rapidly growing enterprise that has captured the attention of investors and customers alike. As your company scales
Becoming a Digital Citizen: Embracing Learning and Development in the Workplace
The ever-changing digital landscape ensures that adopting innovative technologies in the workplace will always be necessary. Accountancy and finance professionals must