ICV Audit Services in UAE

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.

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:

Frequently Asked Questions – ICV

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.

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.

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.

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.

Ministry of Industry and Advanced Technology (MOIAT) has authorized certain professional firms called “Certifying Bodies” to verify and issue the ICV certificate.

A Company who has been authorized by the MOIAT for verification of Suppliers’ ICV certificate application and issues the ICV certificate.

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
  • Investments
  • Emiratization
  • Expatriate contribution
  • Bonus- Exports, Emirati headcount and investment growth

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.

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.

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.

Yes, free zone companies can obtain an ICV certificate.

Yes, free zone companies can obtain an ICV certificate.

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