The UAE’s National In-Country Value (ICV) Program: A Comprehensive Guide to Certification and Registration

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The UAE’s National In-Country Value (ICV) program fosters local economic growth by encouraging investments, employment of Emiratis, and sourcing from domestic suppliers, benefiting over 3,000 companies and contributing significantly to the economy. Certified businesses gain access to government contracts and enhance their competitiveness in the market.


By Giulia Interesse

The UAE’s National In-Country Value (ICV) program, introduced by the Ministry of Industry and Advanced Technology (MOIAT), is now a vital part of the country’s business strategy and procurement operations across multiple Emirates.

The program is designed to drive local economic growth by promoting domestic manufacturing, sourcing of local products and services, and increasing investments within the UAE. Additionally, it places emphasis on the recruitment and development of Emiratis. By directing more spending toward national suppliers and industries, the ICV program aims to strengthen the local economy.

As organizations prepare to adopt the ICV framework, by applying to the ICV Certificate, it’s crucial for them to fully understand its objectives to ensure successful implementation.

In this article, we will explore the UAE’s ICV certification process, its eligibility criteria, the types of companies that can apply, and the numerous benefits associated with obtaining the certification.

Understanding UAE’s ICV certification process

The ICV Certificate is a pivotal framework established by the UAE to enhance local economic contributions from suppliers and aims to promote sustainable economic growth by encouraging companies to increase their local investments, procurement, and employment.

Key stakeholders involved in the program

The National ICV program operates with a broad network of stakeholders, including:

  • ICV Program Certifying Bodies: These entities are authorized by the MOIAT to carry out technical evaluations of companies’ applications for ICV Certificate and issue certificates that comply with the Ministry’s standards.
  • ICV Certified Companies: These are businesses that have received the National ICV Certificate through the program’s approved certifying bodies.

General instructions to obtain an ICV Certificate

To obtain an ICV Certificate, each legal entity of the supplier must apply individually, regardless of shared ownership. Companies with multiple branches in the same emirate, sharing identical activities and ownership, can opt for a combined ICV Certificate.

Before applying for the ICV certificate, the following considerations must be taken into account.

General Guidelines Before Applying for ICV Certificate

Guidelines Details
Financial reporting requirements The figures entered in the ICV certificate must align with the supplier’s latest audited financial statements, which should adhere to International Financial Reporting Standards (IFRS) and be no older than two years. For newly established companies, management accounts from the past nine months may be used in lieu of audited statements.
Validity of the certificate An ICV Certificate remains valid for 14 months from the date of the latest audited financial statements. Suppliers have the option to re-certify during this period, but the original validity timeline persists.

 

Certifying body protocol Once a certifying body is appointed, suppliers must maintain that relationship for the Certificate year unless justified reasons for a change are provided.
Cost and revenue reporting Suppliers must consider all costs incurred and revenue earned during the financial year when submitting their ICV application. Costs should be reported in AED, with specific currency conversions based on prevailing rates.
Consumption details For suppliers engaged in industrial activities, annual consumption metrics (e.g., electricity and gas usage) must be reported.
Documentation and compliance Suppliers are required to maintain documentation supporting their reported figures, ensuring transparency and accountability. Any gross negligence in submissions may lead to punitive measures, including bans from future participation in business with relevant entities.

 

Template and methodology The ICV Certificate must be generated using the official ICV Certificate Template, ensuring all entries are accurate and reflect the supplier’s financial reality. Suppliers are encouraged to adapt their accounting practices to facilitate this process in subsequent years.
Source: UAE Government Portal

Eligibility criteria for ICV certification

To qualify for the ICV Certificate in the UAE, companies must meet specific eligibility criteria. Here are the key factors to consider:

  • Registration and licensing: Businesses must be registered with the appropriate government authority and possess a valid trade license.
  • Physical presence: Companies must operate physically within the UAE and offer goods or services locally.
  • Sector-specific requirements: Organizations must adhere to particular ICV requirements relevant to their industry. Each sector has specific guidelines that outline the standards for certification. These guidelines consider factors such as the local content in products and services, investments in regional infrastructure, and the level of Emiratization in the workforce, particularly in the oil and gas sector.
  • Independent audit: To obtain the ICV Certificate, companies must undergo an independent audit by an authorized certifying body. This body will assess the company’s performance against the relevant ICV criteria and assign an accreditation based on the resulting ICV score.

Types of companies and considerations for ICV Certificate

Understanding the types of companies that can apply for the ICV Certificate and their specific considerations is crucial for successful compliance. Below is a breakdown of the various company types and their respective considerations:

Types of Companies and Considerations of ICV

Type of company Consideration for ICV
LLC in Mainland UAE (Limited Liability Company) Considered within the UAE
Free Zone Companies Good manufacturer: considered within the UAE

Service providers: all attributes except investment will be considered within the uAE

Offshore Company Outside UAE
Representative Office Based on parent company
Source: UAE Government Portal

How to register on the ICV platform

Entities wishing to participate in the ICV Program must adhere to the following registration procedure:

  1. Access the official ICV platform: The registration process begins by navigating to https://moiat.gov.ae/en/icv.
  2. Login or create an account: The UAE Pass credentials may be used, or a new account can be created through the MOIAT Single Sign-On (SSO) portal.
  3. Company registration: In cases where the entity does not already have a profile on the platform, the “Register Company” button should be selected, and the necessary details must be provided to establish the company’s presence. If joining an existing company, the provided email invitation code is required.
  4. Complete the registration: After submitting all required information, the registration process will be finalized, with approval from MOIAT expected within a maximum of three working days.

Procedure for applying for an ICV Certificate via the ICV platform

Suppliers that have successfully registered on the ICV platform are required to follow the procedure below to apply for an ICV Certificate:

  • Log into the ICV platform: Access the platform by logging in via the UAE Pass or through the SSO portal at https://moiat.gov.ae/en/icv. After logging in, suppliers will be redirected to the main interface of the ICV platform.
  • Initiate the bidding process: Select the “Bidding Process” tab and proceed by clicking on the “Select CBs” button to initiate a new bidding request.
  • Select certifying bodies: From the list of approved Certifying Bodies (CBs), suppliers should select the ones they wish to solicit offers from. It is important to note that all terms, conditions, and fees related to the ICV Certificate have been pre-negotiated with these CBs.
  • Complete the required questionnaire: Necessary details about the entity’s operations must be provided by completing the questionnaire. Once the information is accurately entered, select “Request Quote” to proceed. The chosen CBs will then receive the supplier’s details and generate a quotation based on the pre-established agreement.
  • Review and approve the quotation: Upon receipt of the quotation from the selected Certifying Body, carefully review the offer and, if acceptable, formally approve it.
  • Sign the engagement letter: The relevant CB will upload a signed engagement letter in the “Engagement Letter” tab of the platform.
  • Submit the ICV Certificate draft: Populate the draft ICV certificate with the relevant details. This draft will then undergo review, endorsement, and final approval by the relevant CB.

Benefits of ICV certification in the UAE

Since its launch, the ICV program has significantly impacted the UAE’s economy, facilitating employment for over 1,500 Emiratis in the private sector and contributing more than AED44 billion (approximately US$12 billion) to the economy. Additionally, the ICV Certificate has been awarded to more than 3,000 companies across the UAE.

The ICV program assesses various factors, including local investment, Emirati employment, expatriate funding, income generated outside the UAE, and overall investment growth. This initiative has led to the creation of new business opportunities that necessitate sourcing from within the UAE.

ICV certification enhances private sector involvement, contributes to the diversification of GDP, and localizes essential supply chain elements. Furthermore, it supports small and medium-sized enterprises by simplifying the localization of supply chains, facilitating growth and development.

Holders of the ICV certificate also gain access to contracts from federal authorities and partner companies. This preference for local suppliers over foreign agents during tender evaluations not only uplifts the ICV scores of suppliers but also bolsters the national economy.

 

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