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The UAE has become a hotspot for businesses in the Middle East and beyond, and the In-Country Value (ICV) process is an important part of understanding the country’s business environment. This blog will serve as an introduction to the process and its importance in the UAE. Throughout this blog, we will discuss which entities are required to obtain an ICV certificate, the role of the certifying bodies, and the ICV implementation process.
ADNOC (Abu Dhabi National Oil Company) launched the In-Country Value (ICV) program for its contractors and suppliers in 2018. The program provides incentives to businesses in developing countries that meet specific quality and delivery requirements. The ICV program focuses on reducing costs associated with importing goods while also improving product quality and delivery. The Department of Economic Development, Aldar Properties, and Abu Dhabi Ports have all joined the ICV program in recent years, making it a more robust scheme.
An ICV certificate certifies that a specific supplier or contractor has completed the ICV certification process and received a validated ICV score from independent, pre-approved ICV certifiers. The certificate declares an organization's ICV "achievement," which represents the total amount spent within the UAE or contributed to the UAE's economy.
The ICV Score of a supplier or contractor is established using a pre-established methodology by assessing the economic value added for the company's goods or services within the UAE. Through this process, which includes an explanation of how the business provides the required ICV, the supplier or contractor in question is able to show their contribution to the local economy.
The ICV certification process takes into account goods manufactured revenue from outside the UAE, Emiratization, investment, and expatriate contribution to achieve their proposed goals. By using this certification procedure, suppliers' information about their ICV contribution will be verified for validity and accuracy.
A number of certifying bodies have been chosen to carry out independent third-party verification of the numbers in the ICV Certificate as part of the implementation of the ICV program for ADNOC Group Companies. Annually, this third-party verification must be carried out.
ICV certification is necessary for all businesses based in Abu Dhabi that wish to submit applications for governmental and semi-governmental procurements. To participate in a tender with ADNOC or any of its group companies, a legal entity must obtain an ICV certificate.
No business is excluded from the certification process based on its size. A company's ICV certificate is good for 14 months from the date the company's audited financial statements were issued once it has been obtained. Within two months of the release of the audited financial statements, the organization must have the updated ICV certificate.
If you want to obtain an ICV certificate, you must first contact one of the certifying bodies to receive a quote. The certifying bodies will then send you an application form and a request for additional information. After you submit this information, the certification body will review your application and issue you an ICV certificate.
When you have selected a certifying body, you will sign an engagement letter. From there, the certifying body will begin its evaluation. The evaluation process can take anywhere from a few weeks to several months, but it is always important to stay in communication with your certifying body so that you know what is happening and how they are progressing.
In the end, the final decision on your certification will be made by your certifying body, and there is no getting around it. Make sure that you are fully prepared for this process, and be ready to answer any questions that your certifying body may have.
The ICV certificate program is a key part of the UAE's economic diversification strategy. The program offers businesses and individuals the opportunity to invest in clean technology projects that can create jobs and contribute to the country's long-term growth prospects.
Since its inception, the ICV certificate program has helped support more than 50 clean technology projects across a range of sectors, including energy, agriculture, water resource management, and waste management. In addition, the certificates have helped attract investments worth more than AED 1.5 billion (US$385 million).
The UAE is committed to promoting sustainable development and achieving its Vision 2030 goal of becoming a high-income nation by providing opportunities for businesses and individuals to invest in innovative technologies that will build a stronger economy and society. The ICV certificate program is an important part of this effort.
The UAE is looking to prioritize creating opportunities for its nationals in the private sector through its ICV certificate program. The program applies to both local and foreign businesses operating in the UAE. The certificate program intends to help businesses increase their competitiveness and create more jobs for Emiratis. By implementing the program, the UAE aims to improve economic prospects and the quality of life for its citizens.
The ICV certificate program was introduced by the UAE in order to strategically localize critical parts of the value chain for selected categories and industries. The goal of the program is to create a more sustainable and competitive economy as well as improve labor productivity. In addition to this, the ICV certificate program also aims to improve quality control and increase export competitiveness.
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