The National In-Country Value (ICV) Program is a strategic initiative launched by the UAE government to enhance economic diversification and boost local industries. By incentivizing companies to increase their contribution to the national economy, the program aims to create more job opportunities for UAE nationals, encourage local production, and foster sustainable economic growth. The ICV program requires businesses operating within the UAE, particularly those seeking government contracts or participating in large tenders, to obtain an ICV certificate.
What is an ICV Certificate?
An ICV certificate, also known as the In-Country Value certificate, is a document issued to businesses after an audit and evaluation of their financial and operational activities. This certification evaluates the company’s contribution to the UAE’s economy based on factors such as:
- Local procurement of goods and services.
- Employment of UAE nationals.
- Investments in local infrastructure.
- Exports and value-added activities.
The ICV certificate is part of the UAE’s strategy to ensure that a greater share of investments and revenues stays within the country, promoting industrial growth and enhancing the competitiveness of UAE-based companies. The certificate is valid for 14 months and is required by companies involved in procurement with government and semi-government entities.
Role of ICV Consultants
Navigating the complexities of the National In-Country Value Program can be challenging for businesses, especially for those unfamiliar with the audit and certification process. This is where ICV consultants play a crucial role. These consultants are experts in the ICV certification process and assist companies in maximizing their ICV scores.
ICV consultants guide businesses through the preparation of documentation, financial reviews, and ensure compliance with ICV requirements. They help companies identify areas for improvement, such as increasing local procurement, hiring more UAE nationals, or investing in innovation. By doing so, companies can enhance their ICV score, making them more competitive in tendering for government projects.
Moreover, ICV consultants provide tailored strategies for businesses to align their operations with the UAE’s long-term economic goals. They offer valuable insights into how a company’s operations can contribute to the overall economic development of the UAE while benefiting from greater access to local opportunities.
Benefits of the ICV Certificate
Obtaining an ICV certificate offers numerous advantages to businesses operating in the UAE. The program is designed to encourage companies to contribute to the country’s industrial and economic growth. Some key benefits include:
- Increased Competitiveness: Companies with higher ICV scores gain a competitive edge when bidding for government contracts, as the ICV score is often a determining factor in awarding contracts.
- Economic Diversification: By prioritizing local sourcing and job creation, the ICV program supports the UAE’s goal of diversifying its economy away from oil dependence.
- Stronger Industry Partnerships: The program encourages companies to establish partnerships with local suppliers, thus strengthening the supply chain within the UAE.
How to Apply for an ICV Certificate
To obtain an ICV certificate, businesses must undergo a formal audit by an approved certifying body. The process includes a thorough review of the company’s financials and operations from the previous year. The certifying body then calculates the ICV score based on the company’s contribution to local employment, procurement, and investments.
Approved certifying bodies must be recognized by the Ministry of Industry and Advanced Technology (MoIAT). The ICV certificate, once issued, is valid for 14 months, allowing companies to participate in government tenders and procurement processes. Engaging with ICV consultants can make the certification process smoother and help businesses achieve a higher ICV score.
Conclusion
The National In-Country Value Program is a significant initiative that aligns with the UAE’s broader vision for economic development and diversification. The ICV certificate plays a key role in assessing a company’s contribution to the local economy, and businesses aiming to succeed in this competitive landscape must prioritize obtaining it. With the support of ICV consultants, companies can not only achieve higher ICV scores but also contribute to the UAE’s long-term goal of fostering sustainable growth and local industry development. By aligning business strategies with the program’s objectives, companies will find themselves well-positioned to thrive in the UAE market.