The National In-Country Value (ICV) Program is a comprehensive policy tool designed to reshape government procurement, strengthen local industries, promote investment, and enhance employment within the country. When exploring ICV certification services in Dubai, it is essential to understand the broader objectives of the program. The following outlines the primary goals of the ICV Program in the UAE, their significance, and how businesses can align their operations to meet these objectives.
Major objectives of the ICV program in the UAE
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Localization of Supply Chain and Local Industry Development.
The program ensures that a greater amount of goods, services, and manufacturing occurs locally. The UAE does not want to import everything and use outside sources; instead, the country desires to create an efficient ecosystem in which local suppliers, manufacturers, and service providers would be part of it.
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Economic Diversity and Foreign Investment Attraction.
One of the key objectives is to minimize the reliance on oil revenues and to diversify the economic sector. The ICV Program brings the economy to the manufacturing, advanced technology, clean energy, and priority sectors.
In addition, when the UAE is made a more desirable destination to both local and foreign investors by ensuring that there are consistent regulatory frameworks, incentives, and precise measures related to ICV, more capital enters these non-oil sectors.
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Expanding Local Procurement and government expenditure in the UAE Economy.
Among the less strategic and more potent goals is the redirection of government and large corporations’ spending (procurement, services, investments) towards the UAE economy. Instead of spending money on buying overseas, additional money will be spent domestically. This stimulates local products and services demand, SMEs, as well as domestic industrial capacity.
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Job Creation & Emiratization
UAE desires additional UAE citizens operating in the private sector, not only in the government or in the state agencies. The ICV Program compels companies to hire and develop the local talents, whereby when computing the ICV scores, preference is given to Emiratis.
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GDP Growth and National Self-Sufficiency.
The ICV Program boosts GDP growth by directly encouraging investment, encouraging local procurement, and localizing supply chains. The greater aim is self-sufficiency in most crucial areas, decreased dependence on imports, and enhanced resilience.
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Increasing Competitiveness, Innovation, and Sustainability.
Firms that have high ICV scores benefit in tenders and contracts. The program promotes innovation, using new technologies and sustainable ways (e.g., Green ICV incentives). That forces businesses to become modern, efficient, and to lessen their impact on the environment.
How Businesses Can Ensure Compliance with ICV Requirements in UAE
It is advisable to:
- Ensure audited financials (IFRS) are solid, because procurement entities or certification bodies will look closely at local spending, investment, salary costs, etc.
- Plan your supply chain: increase local procurement of goods and services, find local partners/suppliers.
- Prioritize hiring and developing Emiratis. Invest in training programs, upskilling, and transparent processes.
- Embrace technology, innovation, and sustainability—because newer versions of ICV criteria/bonus points are tied to those.
How ICV Certificates UAE Can Help
To seamlessly obtain an ICV Certificates UAE, businesses are advised to seek the expert services of top ICV Consultants in the UAE. Thus, contact us today, and we shall be glad to assist you.
Frequently Asked Questions
FAQ 1. What is the ICV Certificate, and who issues it?
The ICV Certificate is an official credential confirming a company’s contribution in terms of local spending, investment, workforce (especially Emirati employment), and other local value-added activities. It is issued by accredited certifying bodies in the UAE under the supervision of the MoIAT or other designated entities. Companies normally provide audited financials, fill in templates, and must meet the required criteria.
FAQ 2. Is it mandatory to have ICV Certificate to participate in government tenders?
It depends on the entity and the tender. In many cases (especially large ones, like with ADNOC or major federal procurements), having an ICV Certificate is strongly advantageous and sometimes mandatory. Even when not strictly required, having it significantly boosts your evaluation score. Without it, you might score zero in the ICV component.
FAQ 3. What are the main components used to calculate an ICV score?
Components typically include: local procurement (goods & services sourced locally), capital investment in the UAE, hiring of Emirati nationals, and in some cases local expatriate workforce, research & development or technology adoption, ESG factors including sustainability practices. The exact mix depends on current ICV criteria.
FAQ 4. How does the ICV Program benefit companies beyond compliance?
Major benefits of the IVC program are:
- Access to more government and large-entity contracts with better evaluation scores.
- Improved reputation and competitiveness.
- Drives internal efficiency (local sourcing, better workforce planning).
- Strategic risk mitigation: being less exposed to disruptions overseas.
- Possibly financial or incentive advantages from government bodies.
FAQ 5. How often must I renew the ICV Certificate and how long is it valid?
Typically, the certificate is valid for a period after issuance (often linked to the financial year audited). Renewal is required after that validity period, with updated financials and updated local-value contributions. (Specific duration can vary depending on certifying body and sector/tendering entity.)
