In-Country Value – ICV Certificate in Dubai, UAE
Abu Dhabi National Oil Company (ADNOC) group companies introduced the ICV program in November 2017. The program was initiated by the UAE government to boost the country’s economic growth. The ICV Certificate in Dubai, UAE, 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 5 other participating entities were 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:
What is an ICV certificate?
The ICV Certificate in its full form is the Inland Value Certificate, first developed by ADNOC, the national oil company of the United Arab Emirates. The national ICV program is implemented by MoIAT to achieve optimal value from the UAE’s oil and gas resources. The program is expanding to cover sectors other than oil and gas. ICV certification bodies award UAE companies a value rating, which determines how much a company contributes to the national economy.
The purpose of introducing in-country value certification
The ICV certificate aims to increase the private sector’s contribution to the UAE’s national GDP. The ICV program contributes to the UAE government’s key objectives, such as:
- 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?
ICV certification is mandatory for companies that intend to do business with ADNOC or its group of companies. Suppliers must apply to ADNOC’s designated approval organization for ICV certification. This must be obtained in order to be able to evaluate tenders and award contracts with partners. Suppliers benefit from ICV incentives when participating in government tenders. However, it is also important that different companies owned by the same person have separate ICV certificates. A single combined ICV certificate is only valid for a business owner if he/she has different branches in the same emirate with similar activities.
Does the ICV certificate change the situation of companies?
The ADNOC ICV certificate changes the rules of the game, but it is directly linked to the ICV score that you obtain from the regulatory authorities. There is no failing on ICV – you either get 1% or 100%. If you get a high score, you will get high priority from the government when applying for tenders. To get this competitive advantage, you need to outsource your accounting and auditing services in Dubai, UAE, and let them handle the situation.
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, and 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.
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.
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!