Getting an ICV Certification is not mandatory for all businesses in the UAE. But it is important to note that, it is highly suggested for those companies seeking to involve in government tenders and contracts. The ICV certification validates a company’s assurance to support local production. It can impact their aptitude to win bids and secure bonds with entities that prioritize ICV scores in their criteria. The UAE is now a hub for businesses in the Middle East and beyond. An understanding of the ICV process is an imperative part of the business environment.
What are the major attributes for calculating the ICV score?
The most important attributes for calculating the ICV score in the UAE are;
- The ratio of goods and services purchased from local suppliers
- Cost of Emiratization such as Hiring, training, and development of UAE Locals
- Use of local subcontractors in numerous projects
- Investment in training local employees, such as professional and educational programs
- Investment in local set-up, services, and other capital projects
- Investment in local Research and Development events and modernization
- The scope of local ownership and contribution in joint ventures and companies
- Contributions to local communities via Corporate Social Responsibility initiatives
- Efforts to convey knowledge and technology to local businesses and institutions
- Payment of taxes, and other government fees that subsidize the local economy
Who is eligible to apply for the ICV Certification in the UAE?
Any local or foreign company can obtain an ICV certificate as per the ICV guidelines such as;
- Suppliers considered tier 1 that are directly providing goods or services to the Program’s Associates may be mandatory to declare their ICV score. It may be considered as a part of the tender assessment and award process of the National ICV Program.
- Subordinate suppliers may also be obligated to deliver their ICV Certificate to strive with the tier 1 suppliers in tenders.
Why it is important to get an ICV certification in the UAE?
There are several benefits to getting an ICV certification in the UAE but some important ones are;
1. Easy access to Government projects
Several government tenders and projects in the UAE look for companies with ICV certification along with high ICV scores. In some circumstances of the projects, only ICV certified businesses are qualified to bid. This ICV certification gives businesses a significant benefit to get involved in profitable government projects.
2. Quicker Business Approvals
It is recommended to be an ICV certified company because you may benefit from a faster reversal time for several situations such as license renewals, authorizations, and extra regulatory approvals from the certifying authorities. This is the main reason that can rationalize your business processes.
3. Viable Edge
The UAE market is modest. It is important to have an ICV certificate that may set your business apart from others that don’t. It validates your assurance to contribute to enhancing the local economy. It can make you an extra striking choice for customers and investors.
4. Access to Incentives
Some government entities might offer funding incentives. Sometimes they offer some other personalized benefits to ICV certified businesses. It may seem an extraordinary perk for your business to contribute to the program.
5. Higher Status
An ICV certificate depicts a higher status or reputation of your company due to positive involvement in the UAE’s financial growth objectives. This factor enhances your status and business’s brand image in the UAE.
What are the essential documents required for ICV certification in the UAE?
The essential documents required for ICV certification in the UAE are;
- Audited Financial Statements as per IFRS
- Valid Trade License
- Association Memorandum (MoA)
- Shareholder Certificates
- Accounts Payable Records
- Business Details
- Information about Employees
- Contractual Records
- Corporate Social Responsibility Reports
- Supplier Development Initiatives
- Tax Registration and Compliance Documents:
- Procurement and Subcontracting Records
Conclusion
The UAE is continuously developing its economic modification in several sectors including non-oil sectors. The structure of In-Country Value (ICV) has become of the highest policy importance. ICV certification gives access to several benefits. It gives you a major opportunity for a win-win situation. It also allows businesses to support Emirati objectives that open the vacancy of job creation, supply chain expansion, and substructure investment. It also gives companies special access to profitable government contracts and incentives. To make it all easy, Farahat & Co is one of the dominant audit firms in the UAE. Their proficient team makes it easy for you to put effort. They understand the criteria, localization numbers, and more domestic supplies, and make reports transparently as per guidelines. It is key to get guidance from Farahat & Co. in order to secure this desired certification.
