The In-Country Value (ICV) Certification has become a strategic requirement for companies looking to engage with the UAE government and major state-owned entities such as ADNOC, Mubadala, and Aldar. The ICV program, launched by the Ministry of Industry and Advanced Technology (MoIAT), aims to boost the UAE’s economy by encouraging local production, creating employment opportunities for Emiratis, and supporting GDP growth.
If your business wants to participate in government tenders or work with ICV-compliant organizations, obtaining the ICV Certificate is essential. This article provides a comprehensive, step-by-step overview of the process of obtaining ICV Certification in the UAE.
What Is ICV Certification?
The In-Country Value (ICV) Certificate is a document that quantifies a company’s contribution to the UAE economy. It assesses factors like:
- Local goods and services procurement
- Emiratization (hiring UAE nationals)
- Investment in the UAE
- Revenue retained in the UAE
- Exports of goods and services
Companies with a high ICV score gain a competitive advantage when bidding for government and semi-government contracts. The certificate is issued based on audited financial statements and is valid for 14 months from the date of issuance of those statements.
Who Needs ICV Certification?
ICV certification is not mandatory for all businesses in the UAE. However, it is highly recommended for:
- Suppliers looking to work with government entities
- Vendors or subcontractors involved in projects with ADNOC, Aldar, Mubadala, and others under the ICV program
- Businesses that want to gain a competitive edge in procurement bids
Benefits of ICV Certification
- Priority in government contracts
Companies with higher ICV scores receive preference in tender evaluations. - Market access
Eligibility to supply goods and services to key sectors like oil and gas, construction, and energy. - Business reputation
Enhances your company’s standing as a national contributor to the UAE economy. - Growth opportunities
Encourages investment in local infrastructure, training, and Emirati talent development.
Step-by-Step Process of Obtaining ICV Certification
Step 1: Prepare Audited Financial Statements
The most critical prerequisite for obtaining the ICV Certificate is having audited financial statements prepared in accordance with International Financial Reporting Standards (IFRS).
Key points to note:
- The financials must not be older than 2 years from the date of submission.
- For new companies (less than 10 months old), management accounts may be used, provided they are audited.
- Financial statements must cover a minimum of 10 months of operations.
Ensure the auditor is licensed in the UAE and approved by MoIAT.
Step 2: Engage a Certified ICV Certifying Body
The MoIAT has appointed several certifying bodies authorized to issue ICV Certificates. These include reputable audit and consultancy firms.
Choose an approved certifier from the official list provided by MoIAT. Submit a request along with:
- Audited financial statements
- Trade license
- Emirates ID/passport copy of the authorized signatory
- Organization chart
- Employee data (Emiratis and expats)
- Lease agreements and utility bills
- List of suppliers and procurement details
- Fixed asset register
Step 3: ICV Evaluation and Verification
Once the documentation is submitted, the certifying body will:
- Analyze your financial and operational data
- Assess your local contribution under the ICV formula
- Cross-check expenses such as third-party procurement, Emirati payroll, depreciation, and investments
Each component is evaluated using a weighted score system, which results in your final ICV score.
Step 4: Draft Review and Clarifications
Before issuing the certificate, the certifying body may request:
- Additional documentation
- Clarifications on certain transactions
- Evidence of local procurement or payroll details
This stage ensures that your data is accurate, consistent, and aligned with ICV scoring methodology.
Step 5: Issuance of ICV Certificate
Once the review is complete and all data has been validated, the certifying body will issue the official ICV Certificate. This document includes:
- Company name and license number
- Certificate validity period
- Final ICV score as a percentage
- Breakdown of score components (local goods, Emiratization, etc.)
The certificate is valid for 14 months from the date of your audited financial statements. After expiration, you must renew it with updated audited financials.
Types of ICV Certificates
- Single Entity Certificate
For one legal entity with a single license. - Group Certificate
For companies operating under a holding structure with consolidated financial statements. - Certifications for Newly Established Companies
Issued based on audited management accounts (minimum 10 months of activity).
Tips for Maximizing Your ICV Score
- Increase local sourcing of goods and services
- Invest in fixed assets and manufacturing facilities within the UAE
- Hire and retain UAE nationals
- Retain more revenue within the UAE banking system
- Establish long-term contracts with UAE-based suppliers
These initiatives not only improve your ICV score but also align your business with the national strategy for industrial and economic development.
Conclusion
The ICV Certification process is a structured and transparent framework that evaluates a company’s contribution to the UAE’s economy. Though it may appear complex at first, businesses that understand and follow the proper steps can gain significant benefits from obtaining this certificate.
From preparing audited financials to engaging with an authorized certifying body, the process involves meticulous documentation and compliance. However, with expert guidance and early planning, your business can achieve a high ICV score, enhance its reputation, and secure valuable public sector contracts.
Whether you’re a local SME or a multinational with a UAE presence, investing in ICV Certification is a strategic move toward long-term growth in the Emirates.
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