ICV Certification in UAE

ICV (In-Country Value) certification is a program initiated by the Abu Dhabi National Oil Company (ADNOC) to promote local economic growth and development in the UAE. The purpose of the ICV program is to encourage companies operating in the UAE to invest in the local economy, thereby increasing the economic benefits for the country. By obtaining ICV Certification UAE, companies demonstrate their commitment to contributing to the local economy through local sourcing, employment, and investment. The ICV certificate is issued by ADNOC, and it serves as a testament to a company’s dedication to supporting the UAE’s economic diversification and development goals.

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ICV Certification in UAE – ADNOC Approved Certification Services

ICV Certification in Abu Dhabi – Abu Dhabi

The Abu Dhabi Local Content (ADLC) program is a strategic initiative launched by the Abu Dhabi Department of Economic Development (ADDED) to drive local economic growth and development in Abu Dhabi. The ADLC program is designed to promote the development of a competitive and sustainable local economy by encouraging companies to invest in Abu Dhabi. The initiative also aligns with the objectives of the ICV Certificate Abu Dhabi, ensuring businesses contribute meaningfully to the local economy.
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Who Needs ICV Certification?

ICV certification is mandatory for companies that wish to do business with ADNOC, including suppliers and contractors. However, the benefits of in country value certificate extend beyond ADNOC, and it is highly recommended for companies operating in various industries, including:

  • Oil and Gas: Companies involved in the exploration, production, and distribution of oil and gas.
  • Construction: Contractors, builders, and developers involved in infrastructure projects.
  • Transportation: Companies providing logistics, transportation, and warehousing services.
  • Healthcare: Hospitals, clinics, and medical facilities providing healthcare services.

Also, ICV certification is a requirement for companies bidding on government tenders. By obtaining ICV Certification, companies demonstrate their commitment to contributing to the local economy and increasing the economic benefits for the UAE.

Benefits of ICV Certification in UAE

Obtaining ICV certification in UAE offers numerous benefits for businesses, the economy, and the community. Some of the key advantages of ICV certification uae include:

Economic Contribution: ICV certification has contributed significantly to the UAE’s economy, with an estimated impact of Dh44 billion.

Preference in Government Tenders: Companies with ICV certification are given preference in government tenders, increasing their chances of securing lucrative contracts.
Improved Chances in ADNOC and Other Government Procurement: ICV certification is mandatory for ADNOC suppliers and contractors, and it also enhances a company’s chances of securing contracts with other government entities, driving business growth and revenue.
By obtaining ICV certification, businesses can contribute to the UAE’s economic growth, create job opportunities for Emiratis, and gain a competitive edge in government tenders and procurement contracts.
Job Creation for Emiratis: By prioritizing local content, ICV certification helps create job opportunities for Emirati nationals, promoting their participation in the workforce.
Boost to SME Growth and Supply Chain Localization: ICV certification encourages the growth of Small and Medium-sized Enterprises (SMEs) and promotes the localization of supply chains, driving economic diversification and development.

Eligibility to Obtain an ICV Certificate

To obtain an ICV certificate, companies must meet specific eligibility criteria, which include:
  • Valid Trade License: A valid trade license issued by the relevant authorities in the UAE.
  • UAE Physical Presence: A physical presence in the UAE, which can be demonstrated through a registered office or a branch.
  • Industry-Specific ICV Guidelines: Compliance with industry-specific ICV guidelines, which outline the requirements for each sector.
  • Emiratization, Investment, and Local Content: Demonstration of Emiratization efforts, investment in the local economy, and commitment to local content.
  • Independent Audit by ADNOC-Approved Certifiers: An independent audit conducted by ADNOC-approved certifiers. They helps to verify compliance with ICV requirements.

How to Obtain ICV Certification in UAE?

Obtaining ICV certification in UAE involves a straightforward process. Here’s a step-by-step guide to help you navigate the process:

Step 1

Release Audited Financial Statements (IFRS compliant): Ensure your company’s financial statements are audited and compliant with International Financial Reporting Standards (IFRS).

Step 3

Submit Template to an ADNOC Approved Certifying Body: Submit the completed template to an ADNOC-approved certifying body.

Step 2

Fill in the ICV Certification Template: Complete the ICV certification template, which can be obtained from ADNOC’s website or an ADNOC-approved certifying body.

Step 4

Undergo On-site Evaluation & Audit: The certifying body will conduct an on-site evaluation and audit to verify the information provided in the template. 

Validity of ICV Certification

To obtain an ICV certificate, companies must meet specific eligibility criteria, which include:

ICV certification is valid for 14 months from the date of the audited financial statements. To maintain compliance and ensure uninterrupted business operations, it’s essential to renew the ICV certification before its expiration.

Renewal Process Requirements:

– Companies must submit their renewed audited financial statements.
– Update the ICV certification template with the latest financial and operational data.
– Undergo a new on-site evaluation and audit by an ADNOC-approved certifying body.

Importance of Maintaining Compliance Year-Round:

– Ensures uninterrupted business operations and avoids potential disruptions to government contracts and tenders.
– Demonstrates a company’s ongoing commitment to contributing to the UAE’s economic growth and development.
– Helps maintain a competitive edge in the market, as ICV certification is often a requirement for government contracts and tenders.

How to Obtain ICV Certification in UAE?

When you’re going for ICV certification, there are a few important things to think about:
1. IFRS Financials Mandatory: Companies must submit audited financial statements prepared in accordance with International Financial Reporting Standards (IFRS).
2. One Certificate for Multiple Branches: Companies with multiple branches under the same ownership can obtain a single ICV certificate.
3. Owner Salary Eligibility (WPS Registered): Owner salaries are eligible for ICV calculation if the company is registered with the Wages Protection System (WPS).
4. Internal Costs Handling: Companies must ensure accurate handling of internal costs, including allocations and eliminations.
5. Headcount and Employment Stats: Companies must provide accurate headcount and employment statistics, including Emiratization rates.
6. 10% Score Reward for Mainland Suppliers: Companies that procure goods and services from mainland UAE suppliers can receive a 10% score reward.
7. Governmental Payments Included at 100% ICV Value: Governmental payments, such as taxes and fees, are included in the ICV calculation at 100% value.

ADNOC Approved ICV Auditors in UAE

When it comes to obtaining ICV certification, it’s essential to partner with recognized ADNOC-approved certifiers. Karendsoth is a prominent example of a certified auditor who offers end-to-end assistance in the ICV process. By working with certified auditors like Karendsouth, companies can benefit from their expertise and guidance, ensuring a seamless and efficient ICV certification process. Certified auditors provide valuable insights and support, helping companies navigate the in-country value certificate requirements and optimize their local content contributions.Obtaining an ICV certificate Abu Dhabi becomes more manageable with the right certified partner.

The ICV program has changed a lot over time, and now with Version 3, it focuses more on Corporate Social Responsibility (CSR) and clear company structures. This program is really important for diversifying the economy and supporting Emiratization. When companies prioritize local content, they not only help develop the UAE’s economy but also gain advantages from ICV certification. It’s all about aligning with the country’s goal for a sustainable and varied economy through the ICV Certification Dubai from Kerand South.

Frequently Asked Questions About ICV Certificate

Is ICV certification restricted to SMEs?
No, ICV certification is not restricted to SMEs. Companies of all sizes can apply for ICV certification.
The processing time for ICV certification can vary, but it takes around 2-4 weeks after submitting the required documents.
Yes, ICV certificates issued by ADNOC-approved certifiers are recognized nationally and can be used to bid on government contracts and tenders across the UAE.
The cost of ICV certification varies depending on the certifying body and the company’s size and complexity. On average, the cost can range from AED 5,000 to AED 20,000.

Yes, foreign companies can apply for ICV certification if they have a registered presence in the UAE and meet the ICV requirements.

Companies that fail to obtain ICV certification may face challenges in bidding on government contracts and tenders, and may also miss out on business opportunities with ADNOC and other government entities.
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Let our ADNOC-approved auditors guide you through every step.

Shajin Sha

info@kerandsouth.com
+971527561330

Sai

info@kerandsouth.com
+971527561330
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