In Country Value Program (ICV)

The National In-Country Value (ICV) Program is a UAE government program that aims to boost economic performance and support local industries by redirecting higher portions of public spending into the national economy.

In Country Value Program (ICV) Report

The In-Country-Value Program (ICV) pioneered by ADNOC in 2018 is an initiative designed to achieve the optimum value from our nation’s oil and gas resources to stimulate the UAE’s economic growth and diversification.

Recently, the Abu Dhabi Department of Economic Development (ADDED), Abu Dhabi National Oil Company, Abu Dhabi Ports Company PJSC, Aldar Properties PJSC, Emirates Nuclear Energy Corporation, and Mubadala Investment Company (Participating entities) also have collaborated in this program by implementing a unified In-Country Value (ICV) Program, Rev. 3.0.

Why ICV Certification

Supplier & Vendor Participation

ICV score is an integral part of bid evaluation of the participating entities and it will give added weightage for the suppliers and vendors in the award process.

National Contribution

Entities who are indirectly connected with the tenders also benefit from the ICV certification program; as ICV-certified supplier “spend” that remains within the UAE or contributes to the UAE economy, is considered for ICV calculation purpose.

The primary objectives of ICV are:

The ICV program focuses on Emiratization by generating more job opportunities for Emiratis, promoting GDP diversification through sourcing goods and services within the country, and strategically localizing critical parts of the value chain for specific business categories.

Emiratization

Generating more employment opportunities for Emiratis in the private sector

GDP Diversification

More goods and services are sourced within the country, in a move to support diversification

Strategic considerations

Critical parts of the value chain are localized for certain categories of businesses

Key considerations in ICV Certification

The program takes into consideration local expenditure on manufacturing, local products and services, investments, and the hiring and development of Emiratis. It aims to support the national industry and redirect expenditure on procuring goods and services into the national economy.

ICV certification is based on the last audited IFRS financial statements of the entities and shall not be older than 2 years from the certification year.

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 10 months can be considered for ICV calculations.

The ICV certificate shall be valid for a period of 14 months from the date of issuance of audited financial statements.

ICV Scores are calculated using a pre-defined methodology by assessing the economic value added within the country for the goods or services provided by the entity.

Areas Of ICV

Following areas are taken into the consideration for the calculation of ICV Score:

Goods Manufactured

Third Party Spend

Revenue

Export Outside UAE

Investment in UAE

Emeratistion

Expatratiate Contribution

FAQ

What is the National in-country value program?

The National In-Country Value Program (ICV) is a UAE government program that aims to boost economic performance and support local industries by redirecting higher portion of public spending into the national economy. The National ICV is a certificate issued to suppliers in which their contribution to the local economy is evaluated. The certified suppliers are then given an advantage during the award of contracts and purchases based on their ICV score.

Who are the Participating entities of the ICV programme in UAE?

All the entities who have implemented the In-Country Value (ICV) program jointly are referred to as “Participating Entities” and include the Abudhabi Department of Economic Development (ADDED), ADNOC, ALDAR, MUBADALA, Etisalat, Emirates Nuclear Energy Corporation, Etihad Rail, Shurooq, EDGE. ICV Certificates are used by the Participating entities in evaluating their tenders for procurement.

What are the economic benefits of the ICV Certificate in UAE?

As a part of the ICV program, more goods and services are sourced within the country, in a move to support UAE’s GDP diversification. Also, the Program will generate more employment opportunities for Emiratis in the private sector and critical parts of the value chain will be localized for certain categories of businesses.

How can suppliers join the ICV Program in UAE?

To join the ICV Program, suppliers need to follow few simple steps:

Issue audited financial statement based on International Financial Reporting Standards (IFRS) (management accounts for new established entities less than 10 months.)
Fill in the ICV template as per the guidelines.
Approach one of the authorized certifying bodies for evaluation.
Once the ICV certificate is received, a supplier can submit it to participating entities.

Who issues the ICV Certificate?

Ministry of Industry and Advanced Technology (MOIAT) has authorized certain professional firms called “Certifying Bodies” to verify and issue the ICV certificate. HLB HAMT is one of the authorized certifying bodies for the ICV certification.

What is a Certifying body as per ICV program?

A Company who has been authorized by the MOIAT for verification of Suppliers’ ICV certificate application and issues the ICV certificate.

What does an ICV score represent?

ICV Scores are calculated using a pre-defined methodology by assessing the economic value added within the country for the goods or services provided by the entity. The score is determined after taking the below into consideration and is described as a percentage:

Goods manufactured/ Third party spend
Investments
Emiratization
Expatriate contribution
Bonus- Exports, Emirati headcount and investment growth

Is the ICV certificate limited to small and medium-sized companies only or large as well?

No, the ICV certificate is not limited to company size.

What are the requirements for issuing an ICV Certificate?

The entity needs to have audited IFRS financial statements which shall not be older than 2 years from the certification year and other requirements requested by the certifying bodies.

What is the duration/validity of the ICV Certificate in UAE?

The certificate’s validity is 14 months from the date of issuance of the company’s audited financial statements. The supplier can get recertified during the validity of the ICV certificate if he chooses to, using the same audited financial statements, but the validity of 14 months from the first issue will remain.

Is ICV Certificate a mandatory requirement in UAE?

ICV certification is required for all companies that wish to apply to governmental and semi-governmental procurements. The ICV factor accounts for a certain weightage in tender evaluation. However, this is not a mandatory requirement.

Can companies located in UAE-free zones obtain an ICV Certificate?

Yes, free zone companies can obtain an ICV certificate.

If the company has four branches in 4 emirates, is it possible to issue one ICV Certificate?

Branches can be combined if they exist in one emirate and their activities are similar. For the branches in different emirates, a certificate for each license must be obtained.

What are the critical considerations for obtaining an ICV Certificate in UAE?

Below are the critical considerations for the national ICV program:

Audited financial statements, prepared under IFRS and not older than two years from the certifying year and signed by a licensed auditor.
ICV certificate shall be obtained for each company’s license (legal entity). However, if a company has different branches in the same emirate with identical activities and ownership, then a combined ICV certificate will be issued.
For companies with manufacturing and commercial licenses, all the accounting records must be split between manufacturing and commercial activities; ICV will be issued for each license separately.
For companies that are less than 10 months old and do not have audited financial statements, management accounts for a period of 9 months can be used for ICV certification purposes.