ICV Certification in
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
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.
The program contributes to urging local suppliers to more
concentrate on obtaining an In-country Value Certificate. The participating
institutions in the United Arab Emirates, are also welcome to join to localize
their business and hence help encourage national economic growth. The schedule
of the national ICV certificate is functioned by MoIAT (Ministry of Industry
and Advanced Technology) to generate an optimized value of oil and gas in the
What is an 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.
An ICV Certificate is a document issued by the ADNOC in UAE
that certifies the level of In-Country Value achieved by a company operating in
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.
includes raising research and development (R&D) expenditures, boosting
national industry competitiveness, and accelerating technological advancement
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
To obtain an ICV certification, suppliers must collaborate
with specific vendors. There are now 23 certifying firms renowned for ICV
Certifying Body in UAE with ADNOC Approved ICV Auditors to get you ICV
Certification in UAE.
Benefits of ICV
Certification in UAE
Since its inception, the ADNOC ICV program has helped more
than 1,500 Emiratis find employment in the private sector and accounted for
over Dh44 billion ($12 billion) in the economy of the UAE. Additionally, ICV
certification has been granted to more than 3,000 businesses in the UAE.
The ICV program examines a number of variables, including
investment, employment of Emiratis, funding from expatriates, income earned
outside of the UAE, and a rise in investment. As a result of this program, a
new business line has emerged that must be supplied from the UAE.
The ICV certification
boosts the private sector's participation, increases the GDP's diversification,
and localizes crucial supply chain components.
The ICV certification also
helps people owning small-chain businesses or medium-sized businesses to expand
and increase their developments as the supply chains are easily localized.
The ICV certification
holders can benefit from the contract from the federal authorities and partner
For the purchase of goods,
ADNOC tends to promote local manufacturing units bidding directly for a tender.
Accordingly, for all purchasing tenders the local manufacturing bidders or
their Local Agents will be preferred over Agents of Manufacturers located
abroad during the tender evaluation. This in return help uplifts the ICV score
of the suppliers and benefits them personally along with lifting the nation’s
Obtain an ICV Certificate
Companies must meet specific eligibility requirements in
order to receive ICV certification in the UAE. Here are some things you should
consider to see if you are eligible to obtain ICV Certificate.
Businesses that want to
apply for ICV certification typically need to be registered with the
appropriate government agency and have a current trade license.
In addition, they must be
physically present in the UAE and working on a product or offering a service.
Organizations must also
fulfill specific ICV requirements that correspond to their industry sector in
addition to these general qualifications.
Each industry sector's
specific ICV program guidelines specify the standards that businesses must meet
in order to be certified. For instance, the ICV program takes into account,
among other things, the degree of local content in the products and services
offered, the investment in regional infrastructure and amenities, and the
degree of workforce Emiratization in the oil and gas industry.
Companies must go through
an audit conducted independently by an authorized ICV certification body in
order to receive ICV certification. In accordance with the pertinent ICV
requirements, the certification body will evaluate the performance of the company
and award an accreditation based on the ICV score.
As a whole, the obligations
for ICV certification are made to make sure that certified businesses are
committed to the expansion and improvement of the UAE and to the local economy.
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
Joining with GoTrack, 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. For newly formed companies that
are less than 10 months old, financial reports must be created utilizing
management accounts or in accordance with International Financial Reporting
A set of accounting standards known as IFRS offers a
universally accepted vocabulary for financial reporting. Using IFRS will
increase a company's financial reporting's transparency and reliability, both
of which are crucial for gaining the trust and credibility of stakeholders.
2. 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, including local sourcing, investment in
community amenities, employment of Emiratis, and other elements that support
the growth and success of the local economy. Companies must adhere to the ICV
program's instructions when filling out the ICV template.
3. 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. Independent businesses that have been given permission by the ICV
program to assess and certify businesses for their ICV compliance are known as
authorized certifying bodies.
These certifying organizations have the knowledge and tools
required to assess the ICV template and other supporting materials supplied by
the business. After reviewing the supplied information, the certifying body
will carry out an on-site audit to confirm the information.
4. 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
once they have examined the ICV template and any supporting documentation and
found that the business complies with the program's requirements.
ADNOC ICV certification shows a business's dedication to
boosting the local economy and can offer advantages like special consideration
in government tenders and deals. Our ADNOC ICV-approved auditors make it simple
for you to obtain ICV certification and guide you through each step of the way,
making a complex task like this much more seamless and time-effective.
Validity of an ICV
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.
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.
Except for depreciation cost, all of a supplier's internal costs will not be
included in the calculations.
Headcount of employees:
Number of employees will be accounted for a year.
Credit to mainland
suppliers: If you are a supplier from Mainland UAE, You will get an 10%
reward in ICV Score.
Payments to governmental
authorities: Payments made by the supplier to governmental free zone
authorities and organisations with licenses will be counted as 100% ICV.
ADNOC Approved ICV
Auditors in UAE
GoTrack is a reputable auditing firm based in the UAE,
offering a range of financial and compliance services to businesses of all
sizes. We can provide comprehensive ICV Certification Services to companies
operating in the UAE.
Our ICV Auditors work closely with clients to ensure that
their compliance with the ICV criteria is accurately measured and reflected in
their ICV score. By partnering with GoTrack, clients can be assured of a
rigorous and reliable ICV audit process that meets the requirements of ADNOC.
The ICV certification has evolved since its implementation
and is determined to keep growing. Currently, the ICV in UAE is in its third
version, and though the ICV score is not affected in the UAE, the CSR
activities of the corporations are captured and displayed on the ICV
documentation and a clear corporate structure can be profoundly seen. This
makes sure of the fact that doing business in the UAE is a long-term
relationship that benefits the nation and the stakeholders.
The program also protects various initiatives other than oil
and gas. The ICV certification authorizes companies with value ratings that
show how much the nation is benefitting from that corporation. Strategic
considerations, GDP diversification, and Emiratization were encouraged by its
1. Is ICV certification restricted to SMEs?
No, the size of the company does not affect ICV
2. How long will it take to receive the certificate for the
Depending on each supplier's circumstances, different
amounts of time are required to process each application. It relies on the
business's size, the number of workers, and its willingness to give the
certification agencies the necessary paperwork. The application shall be
processed within a month after receiving all necessary documents.
3. Can vendors who have already received an ICV certificate at
the local scale use it at the national degree?
It is true that suppliers who have received local ICV
certification may use their certificates at a national level.
4. How much does it cost to get a certificate from the National
In-Country Value Programme?
The costs are set by the certifying bodies and are
established using the following criteria.
The company's size (small,
medium, and large) as measured by the number of workers, cost, and revenue per
The ability of the business
to implement an integrated accounting system
The facility's nature:
industrial or commercial
5. Can foreign companies obtain ICV Certification?
Yes, foreign companies can obtain ICV Certification in the
UAE if they meet the program's requirements. Foreign companies must comply with
the same ICV criteria as local companies. Foreign companies must also calculate
their ICV score based on their compliance with these criteria and submit the
score to ADNOC for review.
6. What happens if a company failed to obtain ICV Certification
The consequences of failing to obtain ICV Certification in
the UAE depend on the company's relationship with ADNOC and its subsidiaries.
The effects of not getting an ICV Certification can lead to the following,
Inability to Bid on ADNOC
Damage to Reputation
Possibilities for Potential