ADNOC (Abu Dhabi National Oil Company) launched an ICV initiative driven by procurement in 2018 to encourage Emiratization and GDP diversification. The Ministry of Industry and Advanced Technology (MoIAT) introduced a nationwide ICV certification program in 2021 as a result of the program’s success. ICV certification is essential for firms in the UAE for this reason.
The ICV certification increases suppliers’ chances of winning government and semi-government tenders. It gives companies a defined weightage in tender evaluations. Suppliers can get an ICV certificate with a score based on recent audited financial reports and other factors.
The ICV certificate program aims to develop and diversify the economy by procuring more goods and services domestically. The program also prioritized private sector opportunities for UAE citizens and localized key value chain components for selected classes.
WHAT IS ICV?
The National In-Country Value Program (ICV) of the United Arab Emirates Government is an endorsement of the Ministry of Industry and Advanced Technology’s (MoIAT) responsibility for improving efficiency and ensuring the long-term growth of the industrial sector in the United Arab Emirates.
The initiative encourages the production of goods in the UAE and redirects consumer spending into the national economy through purchases of goods and services.
WHO NEEDS AN ICV?
According to the ICV rules, businesses within or outside the UAE can apply for an ICV certificate. Furthermore, there are two types of suppliers eligible to apply for the certification. They are Tier 1 and Tier 2 suppliers.
- A Tier 1 supplier must report their ICV score to obtain weightage during the evaluation and awarding process for their offer. Tier 1 suppliers directly provide the goods or services.
- To increase their competitiveness in bids against Tier 1 suppliers, suppliers in Tier 2 and lower categories must show their ICV certificate.
Companies can receive the Certificate quickly and easily with the assistance of Dubai’s ICV certification service providers.
WHY IS ICV NECESSARY FOR SUPPLIERS?
If suppliers become part of the ICV, they can actively participate in UAE’s aim of supporting the local industries and cutting the reliance on imports. The suppliers may enjoy the financial benefits in the future, too, when announced. Some of the benefits suppliers will have are;
- When a supplier participates in the program, they gain access to several benefits, including the chance to compete for government contracts and an increase in the demand for locally produced goods and services.
- As a result of the ICV program, value chains are becoming increasingly localized, which presents an opportunity for both sole proprietors and small and medium-sized businesses (SMEs) to expedite the expansion of their respective companies.
- Promoting local businesses, commercializing the goods produced by those businesses, and creating highly skilled employment opportunities are three of the primary goals of the ICV program.
- The ICV certification program allows local businesses to expand their collaboration options with international companies interested in capitalizing on the competitive benefits of a combined supply chain.
- Those with an ICV certificate can enjoy a contractual advantage when dealing with partner companies and federal authorities.
HOW TO OBTAIN AN ICV?
Companies or suppliers applying for ICV certification have to follow a series of steps and fulfill the requirements of most. In Dubai, several companies offer bespoke ICV certification services. Suppliers that have questions about the certification process can speak with these companies. However, here’s how you can get an ICV certification.
- The first thing you should pay attention to is that only Empaneled ICV-certifying bodies in the United Arab Emirates can grant you ICV certification.
- When a provider applies for the certification, they must provide evidence of possessing a unique ICV Certificate for each business license.
- The applicant must fill out the ICV Certification templates.
- The company’s most recent audited financial statements comply with IFRS; you can use them as a source for the figures entered into the template. You should use the most recent two years’ financial statements.
- The Certificate will continue to be valid for 14 months after you have received it. Before the end of this period, businesses have the opportunity to reapply for certification. They may use the same financial information. The acquisition of an updated certificate will not affect the previous Certificate’s validity.
- Once a firm has chosen an Empaneled Certifying Body to verify them for certification, the company will only be allowed to switch to another certifying body for part of its certification period.
- A company’s submission must consider its expenses and income throughout its fiscal year.
- Every single one of the numbers in the ICV Template has to be in AED.
- The supplier must make calculations and assumptions by strictly following the guidelines that are present in the policy.
- The appropriate documents should support every figure provided by the supplier.
- If a corporation tampers with its submission in any way, the company in issue will have to bear the consequences. One of these sanctions may prohibit the defendant from engaging in commercial activity with ADNOC.
LOOKING FOR ASSISTANCE IN ICV CERTIFICATION APPLICATION IN UAE?
To successfully finish the difficult process of acquiring an ICV certification in the UAE, expert help is very necessary. Suppliers must comply with a number of other requirements in addition to submitting the audited financial statements and completing the MoIAT-required supplier submission form. Experts are a premier provider of ICV certification services in the UAE, and successfully help suppliers uphold complete compliance with the established ICV rules and regulations. Additionally, experts firms have a knowledgeable staff of accountants and auditors that can successfully implement the Template Filing requirements. The list of top services provided by Farahat & Co. includes the creation of audited financial statements that are compliant with International Financial Reporting Standards and the provision of knowledgeable ICV guidance to firms.