Understanding ICV Auditors in UAE: Who They Are and What They Do?

Written By Akshaya Ashok, Reviewed By Retheesh R S

Published on 12/12/2024

The In-Country Value (ICV) Program, launched by ADNOC in January 2018, boosts the UAE's economy by promoting local goods, services, investments, and Emirati workforce development. It encourages companies to prioritize local procurement and contribute to sustainable economic growth.

Objectives of the ICV Program 

The primary objectives of the ICV Program include:

• Economic Diversification: Reducing reliance on imports by promoting local manufacturing and procurement. 
• Increasing Private Sector Participation: Encouraging private investments in strategic sectors of the economy. 
• Localizing Supply Chains: Enhancing self-sufficiency and resilience within the UAE's economy. 
• Boosting Employment and Skill Development: Fostering the employment and training of UAE nationals to develop a skilled workforce.
  
  
  

Benefits of the ICV Program for UAE Businesses

Businesses that participate in the ICV Program can enjoy  benefits, including:

• Obtaining an ICV certificate can enhance a company's profile, providing an edge in bidding for government contracts and tenders.
• Companies with higher ICV scores are more likely to win government contracts, as these scores are considered during procurement evaluations.
• Participation may lead to tax incentives, grants, and reduced business costs due to alignment with government procurement strategies.
• By focusing on local sourcing and employment, businesses contribute to the UAE's broader economic diversification goals and sustainable development initiatives.
  
  
  

Who are ICV Auditors in UAE?

ICV auditors are certified professionals responsible for conducting In-Country Value (ICV) audits in the UAE. Their primary role is to evaluate a company's compliance with the ICV Program, which aims to enhance local economic contributions through local procurement, employment of UAE nationals, and investments within the country. The audit process involves a thorough examination of financial statements, procurement records, and employee documentation to determine the company's ICV score, reflecting its economic impact within the UAE.

Role of ICV Auditors in UAE

ICV auditors play a crucial role in the following:

• Conducting Audits: They perform formal examinations of companies to assess adherence to ICV Program requirements, which is mandatory for businesses seeking government contracts with entities like ADNOC and other government organizations.
• Issuing Certifications: Upon successful completion of an audit, ICV auditors issue an ICV certificate that validates a company's contributions to the local economy. This certification is essential for participating in government tenders and contracts.
• Providing Advisory Services: Many ICV auditors also offer guidance on improving a company's ICV score by optimizing procurement strategies and enhancing local employment efforts.

Qualifications and Certifications Required for ICV Auditors

To become an ICV auditor in UAE, individuals need:

• Relevant Educational Background: A degree in finance, accounting, business administration, or a related field is often required.
• Professional Certifications: Certifications such as Certified Public Accountant (CPA), Chartered Accountant (CA), or similar qualifications may be necessary to demonstrate expertise in auditing and financial analysis.
• Approval from ADNOC: Only auditors authorized by ADNOC can conduct ICV audits. This approval ensures that they are qualified to assess compliance with the ICV Program's standards and methodologies.

What do ICV Auditors Do?

ICV auditors are certified professionals responsible for conducting In-Country Value (ICV) audits in the UAE. Their primary role is to evaluate a company's compliance with the ICV Program, which aims to enhance local economic contributions through local procurement, employment of UAE nationals, and investments within the country. The audit process involves a thorough examination of financial statements, procurement records, and employee documentation to determine the company's ICV score, reflecting its economic impact within the UAE.

Importance of ICV Auditors for UAE Businesses

ICV auditors play a role in helping UAE businesses navigate the ICV program, ensuring accurate score calculations and compliance with regulations. By partnering with ICV auditors, businesses can improve their ICV scores, enhance their reputation, and access more government contracts and partnerships. Non-compliance, however, can lead to penalties, lost opportunities, and reputational harm. Engaging ICV auditors is essential for mitigating risks and achieving long-term success.

Conclusion

ICV auditors play an unavoidable role in the UAE business world; they also serve as trusted advisors and experts in guiding the complexities of the In-Country Value (ICV) program. By working with ICV auditors, businesses can ensure accurate ICV score calculations, maintain compliance with ICV regulations, and unlock new opportunities for growth and success. As the UAE continues to develop and thrive. Reyson Badger is a reliable partner, offering indispensable support to businesses striving to thrive in this dynamic and competitive market.

Written By

Akshaya Ashok

Akshaya Ashok is a content writer specializing in creating content focused on accounting and auditing. With over two years of experience, she has developed expertise in crafting professional content for the financial sector.