National In-Country Value (ICV) Certification has been saved
1. What is the National ICV Program?
The National In-Country Value Program (ICV) is a program launched by the UAE Government and aims to support the Ministry of Industry and Advanced Technology’s (MoIAT) mandate of improving the productivity and sustainability of the UAE’s industrial sector. The Program takes into consideration local expenditure on manufacturing, local products and services, investments, the hiring and training of Emiratis, and the creation of job opportunities. The Program supports manufacturing in the UAE and redirect expenditure on procuring goods and services into the national economy.
2. Who are the strategic partners of the National ICV Program?
The Program’s strategic partners comprise of a cluster of government entities and leading national companies in diverse fields, including the Program’s implementers, such as the Abu Dhabi Department of Economic Development (ADDED) represented by the Department of Government Support, which provides an umbrella for 62 local entities, Abu Dhabi National Oil Company (ADNOC) and Aldar Properties. A number of new partners are expected to join the Program in near future.
3. What are the objectives of the Program?
The key objectives of the Program are:
- Strategic localization of supply chains and the development of new local industries and services;
- Stimulating and attracting foreign investments, diversifying the economy, and increasing exports;
- Creating valuable job opportunities in the private sector;
- Contributing to the growth of national GDP;
- Enhance spending on R&D and advanced technology; and
- Increase the private sector’s contribution to national GDP.
4. Is the Unified ICV certificate still valid under the National ICV Program?
Yes, companies who have previously obtained the Unified ICV certificate can use the same certificate for the National ICV Program.
5. Who issues the ICV Certificate?
MoIAT has authorized certain professional firms for the verification and issuance of the ICV Certificate. We, being one of the Certifying Bodies, look forward to assist you with the certification process.
6. Who needs an ICV Certificate?
An ICV Certificate may be obtained by any company inside or outside UAE, in accordance with the ICV guidelines. As part of the National ICV Program, Tier 1 suppliers (suppliers directly providing goods or services to the Partners of the Program) may be required to declare their ICV Score as this is an integral part of their tender evaluation and award process. Tier 2 and below suppliers may also be required to provide their ICV Certificate to ensure competitiveness in their tenders with Tier 1 suppliers.
7. What does the ICV Score represent?
The ICV Score represents the Company’s value-add within the UAE economy. The Score is determined after taking the below into consideration and is represented as a percentage:
- Goods Manufactured/Third Party Spend
- Expatriate Contribution
- Bonus – Exports, Emirati Head Count and Investment Growth
8. What are the key considerations for obtaining an ICV Certificate?
Below are some of the key considerations for the National ICV Program:
- Audited Financial Statements, prepared in accordance with IFRS and not older than two years from the certifying year, and signed by a licensed auditor from the UAE Ministry of Economy.
- ICV certificate shall be obtained for each license (legal entity) of a company. 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 the Company in that Emirate.
- For companies with manufacturing and commercial licences, all the accounting records must be split between manufacturing and commercial activities; ICV certificate will be issued for each licence separately.
- For companies that are less than 10 months old and do not have audited financial statements, management accounts for a period of up to 9 months can be used for the ICV certification purposes.
9. What is the validity of the ICV Certificate?
The ICV Certificate is valid for a period of 14 months from the date of issuance of the audited financial statements.
10. Is there a benchmark or threshold to achieve in order to bid for a tender?
There is no minimum score or benchmark required to bid for a tender. The score is fully evaluated based on the Company’s audited financial statements and will vary based on the different attributes.
A company can participate in tenders without an ICV certificate; however, the ICV score will be calculated as zero.
11. Is it possible to obtain an ICV Certificate at the combined or consolidated
The ICV Certificate shall be obtained for each individual license and thus each legal entity within a group would be required to obtain a separate ICV Certificate. In case of combined or consolidated financial statements, proper disclosures about the group entities along with the related breakdown of assets, liabilities, revenues and costs for each legal entity is required.
12. How much does it cost to obtain an ICV Certificate?
The fee for the ICV Certificate varies depending on the size of the Company and the procedures required to be performed to issue the ICV Certificate.
For more information about our ICV service offerings, kindly send us an enquiry at firstname.lastname@example.org. or visit us at www.deloitte.com