A Guide for Small and Medium Enterprises to Get In-Country Value Certificate

In-Country Value (ICV) Certification has been introduced in many countries including the United Arab Emirates. Since its effectiveness, the national economic growth has reached a significant level for small and large businesses. Local businesses have gained endless opportunities to diversify their services and goods within and outside of the UAE.

The initiative of the ICV certificate is taken by Abu Dhabi National Oil Company, also known as ADNOC. The program encourages local suppliers to focus more on getting an In-Country Value certificate and contributing to the national economy. The ultimate purpose of introducing this certificate is to utilize in-house manufacturing and talent by opening job opportunities and quality delivery for the growth of GDP. The schedule of the national ICV certificate is controlled by MoIAT (Ministry of Industry and Advanced Technology) which works to generate high value of oil and gas in the UAE.

What is an ICV Certificate UAE?

It is a program launched by the UAE government that redirects maximum public spending into the UAE economy and boosts economic performance by supporting small and local industries. Other than increasing the demand for local goods and services, ICV certification promotes local talent and attracts foreign investments into local industries.

Is ICV Certificate Mandatory in UAE?

Yes, the companies that want to work with government entities need ICV Certification. If your company needs expansion and growth while having the aim of boosting goods and services for the national economy, you must need an ICV certificate. It is advisable to consult with the experts before diving into the process and ensure that your company meets all requirements to get registered.

Advantages of In-Country Value (ICV) Certification

The In-Country Value (ICV) Certificate is very significant in UAE culture. There are several benefits to obtaining ICV certification, including:

• Opportunities for investments and funding from strong expatriates to grow business in the UAE.
• High means of employment and possibilities to increase business revenue. 
• ICV certification maximizes the participation of private sectors and small businesses ultimately contributing to the diversification of the country’s GDP.
• Localization of the supply chain across the UAE to help small businesses grow.
• Opportunities to expand small or medium-sized businesses by collaborating with investors and sponsors who appreciate your business.
• Promotion of local manufacturing factories to boost in-house goods and services. 
• ICV certification increases your brand reputation and helps you stand out among your competitors. It demonstrates a strong company background that is playing a role in stabilizing the country’s economic efforts.
• An ICV certification increases the trust among stakeholders and builds a sense of social responsibility. It symbolizes honesty, strength, and commitment, and paves the way to successful collaborations.
• Businesses with ICV certification get an edge over UAE’s government initiatives that are working to promote local businesses by offering them means of development and growth.

What is the ICV Score and How to Calculate it?

The process of getting an ICV Certificate includes the record of financials that is verified by any certified entity in UAE. On submission, all the documents are verified against a checklist prepared by the ICV program. Each point holds a specific score based on which formula is calculated to count the overall score based on the requirements filled by the applicant. The total of this score is called the ICV score.

The following points are considered while calculating the ICV score of a company. 

• Investments
• Manufactured Goods 
• Emiratization
• Expatriate Contribution
• Third-Party Spending

How Can I Get an ICV Certificate in the UAE?

If you are also looking forward to complying with the ICV criteria, you must be wondering how to apply for an ICV Certificate in UAE. For this the very first step for companies is to make changes in the business operations including hiring and training of the staff. Generally, the process for ICV Certification in UAE includes the following steps.

• Provide Financial Statements

The very first requirement to obtain an ICV Certification in the UAE is to provide audited financial records for verification. For startups or small companies, it is important to follow the International Financial Reporting Standards (IFRS) to submit financial records. IFRS is a set of accounting standards that is universally accepted to present financial reporting. Your company must follow the template to maximize the chances of application approval and proceed with the next steps of ICV Certification.

• Fill Form for ICV Certification

A certifying body issues a standard form for businesses to fill up all the required information. The template required data based on various business operations, financials, investments, etc. to know your company better. It is important to follow all the instructions and give all the required information and documents to ensure a high CV score.

• Requirements Evaluation

Once you have filled out the form and submitted it for approval from a certified entity, all the provided information will be verified and evaluated against the predetermined criteria. The staff has tools and data to authenticate your business profile and check it throughout the provided documents. After review, the entity will perform an audit of your business for verification purposes.

• Receive your ICV Certificate

This is the last step of the ICV verification process. The certified entity will issue your company an IICV Certificate once all the provided requirements are fulfilled and documentation meets their program’s needs. After this step, you are all set to promote your business in the local economy and take advantage of government deals and partnerships.

Conclusion

The ICV Certification has revolutionized since its implementation started. It offers several benefits to the UAE’s local businesses by prompting them to contribute to economic growth. Not only this, foreign investments help businesses expand and build long-term relationships that not only benefit companies but also the stakeholders. If you are also looking to get your company’s ICV certificate and looking for the best consultation in the UAE, we have got you covered.