In-Country Value – ICV Certification in Dubai, UAE
Abu Dhabi National Oil Company (ADNOC) group companies introduced the ICV certification program in November 2017 to boost the country’s economic growth. The program, initiated by the UAE government, aims to improve the sustainability of the industrial sector by supporting the Ministry of Industry and Advanced Technology (MoIAT).
Later, a unified ICV program was established, bringing together various government and semi-government companies. ADNOC and five other participating entities merged to expand the Domestic Value Program in Abu Dhabi and the UAE. The provision of ICV certificates has been part of our consultancy expertise for many years. Let us look at this process in more detail
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What Is An ICV Certificate?
The In-Country Value Certificate, also known as the Inland Value Certificate, was first developed by ADNOC, the national oil company of the United Arab Emirates. The national ICV program, implemented by MoIAT, aims to achieve optimal value from the UAE’s oil and gas resources. It is expanding to cover sectors beyond oil and gas. ICV certification bodies award UAE companies with the certificate to recognize their contribution to the national economy.
ICV auditors in Dubai play a crucial role in the certification process. They assess and evaluate the compliance of companies with the ICV requirements and issue the ICV certificate in Dubai, UAE. As a trusted ICV service provider, we assist businesses in obtaining the necessary certification.
The Purpose Of Introducing in-Country Value Certification
The in-Country Value Certification serves a crucial purpose in enhancing the private sector’s contribution to the UAE’s national GDP. This certification program aligns with the UAE government’s key objectives, which include
- Diversification of GDP to move goods and services within the UAE.
- Emiratization, to open up more job opportunities for Emiratis in the private sector.
- Strategic localization in the national supply chain across business categories.
- Stimulating foreign investment and value in the country.
Are All UAE Companies Subject to ICV Certification?
Through the ICV certification services offered by authorized entities, businesses in the UAE can obtain the prestigious in-Country Value Certificate. This certification demonstrates a company’s commitment to the country’s economic objectives and positions them favorably in various business opportunities.
The ICV certification process involves assessing a company’s performance based on specific criteria set by the certification authorities. ICV certified companies in the UAE showcase their dedication to the nation’s development and are recognized for their contributions to the local economy.
Does The ICV Certificate Change The Situation of Companies?
Obtaining the ICV certificate in the UAE requires compliance with the program’s guidelines and demonstrating substantial value generation within the country. By obtaining this certificate, businesses showcase their commitment to national development and gain a competitive edge in the market.
Overall, the in-Country Value Certification program plays a vital role in promoting economic growth, job creation, and localization in the UAE. It encourages businesses to contribute to the country’s vision and align their operations with the nation’s strategic goals.
How Do Certifying Authorities Calculate ICV?
ICV scores are calculated by a dedicated team of more than 30 members from all certification bodies. ICV contributors include partners, directors, managers, senior consultants, associate consultants, the ICV core team, the project coordination, and the support team. Providers can declare their ICV certificate in relation to the results of the financial year. This value is calculated based on the total value of purchases made by the supplier during the year from UAE-registered suppliers. The valuation always varies depending on the last year’s operating model. As there is no specific threshold for obtaining an ICV certificate, each company should strive to obtain a higher ICV score in the country’s internal value program.
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Validity of The National Value Certificate
The ICV certificate is valid for 14 months from the date of issue of the organization’s audited financial statements. Recertification of the ICV certificate may be obtained from the same certification body using the same audited financial statements during the ICV validity period. However, the validity of the domestic certificate of value will remain the same for 14 months.
How To Obtain An ICV Certificate In Dubai, UAE?
ICV certification bodies in the UAE have approved this specific process when applying for the country’s domestic value program. The process is described below:
- Collecting data
The company completes the “Supplier Application Form” provided by ADNOC depending on the latest audited financial statements.
- Agreed procedures
The completed data is compared with the agreed procedure.
The provision of a factual findings report, based on the work carried out during the session, helps to identify weaknesses in the company.
- Validation of forms
The ICV certificate is signed and stamped in Dubai by ADNOC-approved authorities and is valid for 14 months from the date of issue.
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BestaxCA ICV Improvement Plan
In recent years, many companies have already applied for the ADNOC ICV program. Unfortunately, due to the strict evaluation criteria of the authorities, companies obtain very low ICV scores. The presentation of your commercial offers and ICV-related documents is the most influential factor in the award of ICV points. The Institutions are putting in place an ICV improvement plan for companies wishing to achieve higher ICV scores than in the previous financial year.
BestaxCA will help you in this situation as we are chartered accountants and understand all the expectations of the certifying bodies. We will provide expert opinions on how to improve operational performance and update your accounting records in line with regulatory guidelines. If you have had poor ICV scores in the past, you don’t need to worry about this in future years.
Why choose us?
Bestax Chartered Accountants and Financial Advisors serve a variety of business sectors in the ICV certification process. Our team of professionals helps suppliers, manufacturers, SMEs, large companies, and entrepreneurs to participate in the country’s internal assessment program. Our goal is to ensure that you get the best ICV certification results and can compete with your competitors on federal contracts and competitions.
Let us know how our team can help you with the ICV certification process!