Any business that wants to work with ADNOC and its subsidiaries, UAE government departments in areas like construction, healthcare, and logistics has to get an In-Country Value audit in order to apply for an ICV certificate.
What is the ICV Program in UAE?
ADNOC launched the ICV program in 2018. Initially intended only for oil and gas companies, it now applies to businesses in all sectors across the country. The Ministry of Industry and Advanced Technology (MoIAT) oversees the program in the UAE.
The program has a few main objectives:
- Emiratization (hiring more UAE nationals)
- Buying more goods and services from local businesses
- Enhancing local capabilities for major business operations
ICV certificate in UAE
An ICV certificate shows how much value your company adds to the UAE’s economy. You only need one certificate per legal entity, as the document is considered to be unified.
Every certificate has an ICV score which shows the percentage of your company’s spending that stays within the country. The ICV score is a number that shows how much of your company’s total operations benefit the UAE.
It’s based on:
- Revenue from exports or foreign sources
- How much you spend locally
- Your investments within the UAE
- Number of UAE Nationals you employ
- How much you pay non-UAE national employees
The higher your ICV score, the higher chances you have at securing tenders. If you’re working with other entities who also follow the ICV program, having high scores will work in your favor.
Only certifying bodies listed by MoIAT are allowed to issue ICV certificates. These certifying bodies follow a strict review process called an “Agreed Upon Procedure”. Any certificate issued by an unauthorized company will be rejected.
Benefits of the ICV Certification Process
While it’s not mandatory to have an ICV certificate, there are certain benefits to getting a certificate:
- Adds a competitive edge: It boosts your chances to win government contracts.
- Attracts buyers: High ICV scores make your business more attractive to government buyers.
- Potential for cost savings: Aligning with national procurement goals, ICV certification could lead to tax breaks.
How to Apply for the ICV Certificate
- Audit your financials: Before you can apply for a ICV certificate, your company should have audited financial statements that are compliant with the International Financial Reporting Standards (IFRS). These statements must be under two years old. xNew companies under 10 months old can submit management accounts.
- Fill out the template: You must fill out a standard ICV template, which includes employee headcount, nationality, UAE investments, and export revenue.
- Choose a certifying body: You have to submit your completed ICV template and supporting documents to one of the MoIAT-authorized certifying bodies.
- Get the ICV Certificate: The certifying body will review your financials and ICV template. They might ask for clarification or request additional documents. You will get an ICV score percentage after all the provided information has been verified.
Every ICV certificate is valid for 14 months after which it must be renewed. You will need to undergo another ICV audit to re-apply for the certificate.
ICV Audits
An ICV audit is a process where a certified auditor reviews a company’s documents and ensures its compliance with the ICV program. As a critical part of the ICV certificate process, the audit:
- Demonstrates your commitment to UAE’s long-term growth and Emiratization
- Helps identify gaps in how your company supports local economic growth
- Confirms your compliance with ADNOC and other entities’ tender requirements
- Encourages internal improvements through better tracking and reporting
How Does the ICV Audit Process Work?
- Define the Scope of the Audit: Think about what areas of your business will be reviewed. This step helps you make sure that the audit is focused and in alignment with the ICV program goals.
- Collect Information: The auditor gathers all the necessary documents. This can mean things like financial records, employee data, and invoices from vendors.
- Analyze the Data: A mix of numbers and strategy is reviewed to see how your operations impact the UAE economy.
- Calculate Your ICV Score: The auditor uses a specific formula to assign a percentage-based score showing your local value-add.
- Prepare the Audit Report: All findings are documented and presented in a formal report.
Receive the ICV Certificate: If you meet the criteria, you receive an ICV Certificate valid for 14 months.
Apply for an ICV Certificate With A&A Associate
A&A Associate provides expert internal and external audit services, helping companies evaluate their documents and stay compliant with global reporting standards. Our auditors perform independent, impartial reviews and can help you apply for an ICV certificate, handling the entire process. Get in touch today!
