ICV Advisory
ICV Certification in UAE
In the Middle East, the In-Country Value (ICV) program has been introduced within Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Its evolution since its implementation has seen growth in both, the national economy and the personal economic growth of small and big organizations and corporations.
The In-country Value certification, also known as the ICV certificate is an initiative taken by the Abu Dhabi National Oil Company, also known as ADNOC, the national oil corporation, in January 2018 and became effective from April 1, 2018, proved beneficial not only to the individual suppliers and businesses but makes sure to boost the country’s economy as well.
ICV Certification in UAE
ICV Certification is a program launched by the Abu Dhabi National Oil Company (ADNOC) in UAE to measure the contribution of goods and services produced by businesses within the UAE, as well as the local investment and employment, in the oil and gas sector.
ICV Certification in Abu Dhabi and The Abu Dhabi Local Content Programme (ADLC) was formed with the following goals by the Abu Dhabi Department of Economic Development (ADDED):
• GDP Growth: Promoting GDP growth by sourcing more products and services domestically, expanding foreign direct investment in Abu Dhabi, and boosting the GDP contributions of the private sector and SMEs;
• Human Capital Development: Increasing Emiratis’ access to private sector employment opportunities and strengthening local labor force competencies;
• Technology adoption: includes raising research and development (R&D) expenditures, boosting national industry competitiveness, and accelerating technological advancement and application.
What Business should get an ICV Certification?
All suppliers and contractors of the Abu Dhabi National Oil Company (ADNOC) and its subsidiaries are required to obtain ICV Certification. This includes companies that provide goods and services to ADNOC, such as drilling contractors, engineering firms, and logistics providers.
The ICV Certification program is also applicable to companies in other sectors that wish to do business with the UAE government. For example, companies that bid on government contracts in industries such as construction, transportation, and healthcare may be required to obtain ICV Certification.
How to obtain ICV Certification in UAE?
Companies can obtain ICV Certification in the UAE by complying with the ICV Financial criteria established by ADNOC and submit their ICV score to ADNOC. To comply with the ICV criteria, companies may need to make changes to their operations, such as increasing local investments, sourcing more goods and services from local suppliers, and hiring and training more UAE nationals.
Joining with CLEAR BOOKS ICV audit and certification services, you can be a step ahead of time in obtaining ICV Certification in UAE. However, here’s the ICV Certification process
Release audited financial statements
The disclosure of audited financial records is the first requirement for ICV certification in the UAE.
Fill ICV Certification
The ICV score of a company is determined using the ICV template, a standard form. The template is made to record data on various aspects of a business's operations.
Evaluation of Form
Approaching one of the recognized certifying bodies for assessment of the ICV template is the third step in obtaining ICV certification in the UAE.
Obtain IVC Certificate
Receiving the ICV certificate is the last step in the UAE ICV certification process. The certifying body will issue the ICV certificate .
Validity of an ICV Certification
An ICV certification in UAE usually has a 14 Months validity from the date of submitting audited financial documents, or after new financial statements have been issued (whichever is earlier). To keep receiving ICV benefits after a year, businesses must renew their ICV certification.
Companies must submit revised financial statements and complete a fresh ICV template throughout the renewal process to prove that they are still in compliance with the program’s guidelines. The certifying body will then assess the updated data and, if the company persists to meet the ICV program requirements, issue a renewed ICV certificate.
It’s important for companies to maintain compliance with the ICV criteria throughout the year to ensure that their ICV score meets the requirements for renewal. Here’s how you should improve ICV Score.
Key Consideration to obtain ICV Certification in UAE
If you have decided to get an ICV Certification, here are some key considerations where you should look for and enhance it.
International Financial Reporting Standards (IFRS) financials
Financial statements to be submitted for ICV must be comply with IFRS, the mandatory accounting standards in Dubai.
Branches eligibility for one certificate
Businesses having two or more branches in emirate under one ownership is eligible for ICV Certification.
Owner salary credits
Owners salary will be included if they are registered under Wage Protection System (WPS). It will be limited to AED120,000 each month for each owner.
Internal costs
Except for depreciation cost, all of a supplier's internal costs will not be included in the calculations.