Why Does Your Company Need The ICV Certification For Business?

International trade is an important part of the UAE’s economy. From time to time, a foreign company wants to do business in the UAE. The company's management decides that it needs the In-Country Value (ICV) certification for its product or service before it can market & sell its products in the country. So what is ICV? ICVs are an important part of your business plan if you want to be successful in selling your products or services in the UAE. It refers to the value added by an organization or person based on their efforts and skills. The ICV initiative was launched in 2018 by the Abu Dhabi National Oil Company (ADNOC) to promote the Emiratization and diversification of the economy. As part of the initiative, suppliers need to get an ICV Certificate from a recognized ICV certifying body in UAE. And this allows them to be given more money and contracts because of their ICV score when tenders are looked at. 

The Purpose of the ICV Certificate   

For doing business in the UAE, operating as a supplier, or collaborating with ADNOC or other government/ semi-government entities, your business entity must get ADNOC ICV certification. It confirms that a certain supplier or contractor has passed the ICV certification procedure & received a verified ICV score from the pre-approved ICV certifiers.   A supplier or contractor must go through this process to show how they help the local economy. It explains how the company provides ICV, which shows how they help the local economy. To reach their goals, this certification process looks at things like:   

• Goods made   
• Revenue from outside the UAE
• Emiratization   
• Investment 
• Expatriate contributions.   

The primary aim of this certification process is to make sure that the information suppliers give about their ICV contributions is legal and accurate. The UAE aims to expand and diversify its economy with this ICV certificate program. The prime objectives include: 

• To enhance Emiratis' job options inside the private sector.
• To allow GDP diversification.
• To transmit knowledge of technology to local businesses.
• To enhance local supply networks.  

The ICV Certificate will be a company's first right of refusal in a tender procedure. Yet, ADNOC Group bids will treat enterprises without an ICV certificate as having a zero ICV score, putting them at a disadvantage when competing against companies with better ICV scores.       

Who Needs An ICV Certificate And Is It Mandatory?   

According to the ICV rules, companies located within or outside of the UAE may apply for an ICV Certification. All businesses in Abu Dhabi that want to compete for government and semi-government contracts need to get ICV accreditation first.   To take part in a tender with ADNOC and all its affiliated companies, each legal entity must have an ICV certificate.   There is no restriction on the number of firms that may apply for accreditation. The ICV certificate of a business expires 14 months after the company issues audited financial accounts. The company must get a new ICV certificate two months after it releases its audited financial statements to show that it is safe.       

Requirements for Obtaining an ICV Certificate   

The Ministry of Industry and Advanced Technology (MoIAT) in the UAE has established a set of standards & requirements for businesses requesting an ICV certificate. Here is a list of requirements suppliers must meet to receive an ICV certificate in the UAE.       
 

• As part of the ICV certification process, suppliers must provide audited financial statements produced according to International Financial Reporting Standards (IFRS). Only a professional auditor may sign the audit report, and it cannot be older than two years from the certifying year.

• Each legal entity in a business group that has more than one legal form of existence must receive a unique ICV certificate. A company may get this certificate if they have many branches in the same UAE emirate that are all owned by the same company.

• If a company has both a manufacturing & a commercial license, it must keep separate records for each of these.

• Entities that aren't even 10 months old and do not yet have audited financial statements can use management accounts for the ICV certification process for 9 months.

• Suppliers must make sure that the numbers in the ICV certificate match the numbers in their most recent audited financial statements so that the ICV certificate is valid.

Connect With the Best ADNOC ICV-Certified Company in UAE     

To get the most accurate and comprehensive ICV score, working with the best approved ADNOC ICV certifying bodies in UAE is indispensable. ARC Associates is one of the approved certifying bodies that may assist firms in achieving a unified ICV certification. MoIAT has made a template for suppliers to use when they send their documents to certification bodies. It's called the ICV Certificate Sample. It is important to fill out the ICV Certificate template after the most recent financial audit report. This is when Dubai-based ADNOC ICV auditors like ARC Associates come in to help.   We have an in-house team that will analyze financial statements in detail under ICV criteria and offers our customers the best option to earn a high ICV score. Besides, we keep our customers informed of any changes to the ICV program if any. Get in touch with us today to find out more about our services.