In the United Arab Emirates, the ICV programme was launched in January 2018 for suppliers of the Abu Dhabi National Oil Company (ADNOC). Since its inception in 2019, the initiative has grown to include a variety of governmental and semi-governmental organisations.
In-Country Value (ICV) Certification
The National In-Country Value Program (ICV) aims to help the Ministry of Industry and Advanced Technology improve the industrial sector’s performance and long-term viability. The ICV programme supports national industry by redirecting spending on products and services into the national economy. Simply put, it means working with local stakeholders to recruit, buy, and invest in the local economy.
The UAE’s visionary leadership has placed a high value on getting ICV Certificates with a high ICV score in order to win bids from various government and semi-government entities in the UAE.
Other government and semi-government entities, including the Abu Dhabi Department of Economic Development (ADDED), Aldar Properties, Abu Dhabi Ports, Environment Agency Abu Dhabi, Mubadala, Etisalat, and Etihad Rail, have joined the ICV initiative in 2019 and 2020, alongside ADNOC Group.
The Abu Dhabi National Oil Company (ADNOC) has launched an In-Country Value (ICV) program with the objective of growing and diversifying the UAE’s economy and creating opportunities for UAE nationals in the private sector.
ADNOC hopes to foster local and international collaborations and opportunities by incorporating the ICV criteria into its commercial evaluation process, enhancing knowledge transfer and creating job chances for UAE nationals. The ICV review is now a required component of ADNOC’s tender evaluation and award procedure.
- Suppliers shall possess ICV certificate issued by an ICV Empaneled Certifying Body.
- ICV certificate shall be obtained for each legal entity of the Supplier, which intends to be certified.
- Latest audited Financial Statements shall be made available.
- For newly established Companies (less than 10 months old), who do not have audited financial statements, the Management Accounts for a period of up to 9 months can be used for ICV calculations.
- The ICV certificate shall be valid for a period of 14 months from the date of issuance of Audited Financial Statements.
- Draft the ICV improvement plans that is required to be submitted.
Companies working directly as supplier or indirectly as sub supplier with Government and Semi-Government entities are required to acquire the unified ICV certificate.
ICV scores are calculated by assessing the economic value-add within the UAE for the goods or services offered by the company, according to a pre-defined methodology. The following factors are taken into consideration:
- Goods manufactured
- Third party spend
- Expatriate contribution
We at MARS ensure that you are ready and prepared for ICV requirements. Our professional team will assist you:
|Pre Certification review||Review and Re- align||Future planning|
|To ensure that all the eligibility criteria and components of ICV have been considered in the certificate preparation. Also, review the preparation to avoid any disallowances at the certification time. Coordinate with the certification body in the certification process.||Review the financial reporting system and re-align the same with the ICV requirements to ensure both are integrated seamlessly.||Consult and support the client on the effective ways to increase their future ICV score in compliance with the guidelines issued by the ICV committee.|
Mr Mustafa Saifuddin