An In-Country Value (ICV) certificate in the UAE is an essential requirement for businesses seeking government and ADNOC contracts. This article provides a clear and practical breakdown of the ICV scoring process to help businesses enhance their value and competitiveness in the UAE market.
The ICV Formula: How It’s Calculated
Your percentage depends on your total cost with adjustments for differing categories, such as:
- Goods and Services Procurement – Spending with UAE-based suppliers.
- Emiratization – Hiring and training UAE nationals.
- Investments – Investment in local infrastructure, technology, or premises.
- Expatriate Costs – Credited against the number of local recruits.
- Profit Retained in UAE – Profits that are retained within the country.
Official ICV calculation methodology is applied to your accounts by the auditor, who verifies supporting documents and gives a score that is then reflected on your ICV certificate UAE.
Step-by-Step: ICV Score Calculation
Following is how businesses typically follow the procedure:
Prepare audited financial statements – The basis for your ICV score.
Collect supporting records – Payroll, invoices of suppliers, investment details.
Provide evidence of Emiratization – Proof of UAE national employment and training.
Submit to an ADNOC-approved auditor – They are the only ones who can verify and issue your certificate.
Obtain your ICV score and certificate – Valid for 14 months from the date of the financial statement.
How to Achieve the Highest ICV Score in UA
The strategies include:
Hire and train UAE nationals – Invest in Emiratization programs.
Source from local suppliers – Build partnerships within the UAE.
Retain profits locally – Keep reinvesting in your UAE operations.
Invest in local assets – Offices, technology, and facilities contribute positively.
How Top ICV Consultants in the UAE Can Assist
Ultimately, your ICV certificate in the UAE represents more than just a numerical value; it serves as tangible evidence of your company’s commitment to supporting the nation’s vision for sustainable economic growth. To seamlessly obtain ICV certification in UAE, businesses should seek the expert services of top ICV Consultants in UAE. Contact us today, and we shall be glad to assist you.
FAQs
- What does ICV mean in the UAE?
ICV stands for In-Country Value. It measures how much your business contributes to the UAE economy through local sourcing, Emiratization, investments, and profit retention. Your ICV score is then shown on the official ICV certificate UAE, which is required for government and ADNOC tenders.
- How is the ICV score calculated?
The ICV score calculation is based on audited financial statements and supporting documents. An ADNOC-approved auditor reviews your procurement, employment, investments, and profits, then applies the official ICV formula to determine your score as a percentage.
- What is considered a good ICV score in the UAE?
There is no fixed benchmark, but generally, a score above 50% is seen as strong. The ideal score varies by industry. Manufacturers often achieve higher scores through local sourcing, while service companies may focus on hiring UAE nationals.
- How long is an ICV certificate valid?
Your ICV certificate UAE is valid for 14 months from the date of your audited financial statements. After that, you’ll need to renew it to continue participating in government and ADNOC tenders.
- How can I improve my ICV score?
Businesses can raise their score by:
Hiring and training more UAE nationals.
Increasing procurement from local suppliers.
Retaining profits within the UAE.
Making new investments in offices, technology, or infrastructure.
Working with an experienced ADNOC-approved auditor also ensures your efforts are captured accurately in the final score.
