ICV Certification: A Guide for SMEs to Get In-Country Value Certificate

Authorized by the Ministry of Industry and Advanced Technology (MoIAT), an ICV certification is a performance metric for suppliers that measures their contribution to the UAE economy. This certificate provides SMEs with a market advantage when bidding for government and enterprise tenders.

ICV certification in the UAE is an official measure of the local economic contribution of a supplier. The metrics, such as local spending, third-party partnerships, and Emiratization, are taken into consideration as primary indicators. As an SME operating in a constantly evolving economy, having an ICV certification opens the way to government and enterprise tender bidding, significantly improving your market reputation and access to new business opportunities. 

What is an ICV Certificate?

Officially launched by the UAE’s Ministry of Industry and Advanced Technology (MoIAT), an ICV certification is a framework that evaluates your (supplier’s) contribution to the local economy. Though it is not a mandatory requirement, if you are bidding for projects with these companies, you do need an ICV certificate from an authorized body:

• ADNOC (The pioneer and primary driver of the ICV program)
• Ministry of Industry and Advanced Technology (MoIAT)
• Mubadala Investment Company
• Etisalat (e&)
• Aldar Properties
• Abu Dhabi Ports
• Abu Dhabi Department of Economic Development (ADDED)

Key Factors That Impact Your ICV Certification

How is an ICV Certificate Abu Dhabi, Dubai, or anywhere in the UAE calculated? This is a question that bugs many SMEs who are new to ICV certification. Therefore, below are the key pillars that lay the foundation of your ICV score:

• Emirati Workforce
• Local Procurement
• Capital Investments
• Supplier Development
• Training Programs
• Research & Development (R&D) and Operational Excellence

What are the Benefits of ICV Certification for SMEs?

Here are the benefits of the ICV Certification:

• Tender Priority & Access

SMEs that have an ICV certificate UAE are considered more viable to bid for government tenders and enterprise contracts, such as those of ADNOC, Aldar, Etihad Rail, etc. On the other hand, companies without an ICV score zero in the bidding and contract processes.

• Market Reputation

An ICV certification marks your contribution to the UAE economy. In the market, this reflects you as a trusted and national-level partner who aligns with the nation’s long-term goals and contributes to its economy and citizens.

• Enhanced Credibility

UAE is a marketplace of global businesses, investors, and entrepreneurs. In such a thriving environment, having IV certification enhances your credibility and reflects transparency among major industry leaders, investors, and shareholders.

• Access to Lucrative Partnerships

For SMEs, securing highly profitable partnerships in the UAE is a way to grow exponentially in a business-friendly environment. Therefore, companies that are ICV certified can access highly profitable business partnerships with UAE-based entrepreneurs, improve supply chain scores, and build strong, long-term business relationships.

• Alignment with the UAE Long-Term Vision

Obtaining an ICV certificate ensures that you perfectly align with the nation’s long-term interests with strong commitment. As an SME, this becomes highly valuable for you to lead sustainable long-term growth.

What are the ICV Certificate Requirements UAE?

Here are the necessary ICV certificate requirements that you, as an SME, need to fulfill to secure an ICV certificate:

• Audited Financials: Bank statements must not be older than 2 years from the certification year.

• Trial Balance: Trial balance data must match the audited financials.

• General Ledger: Ledger that outlines every expense and revenue for the financial year.

• Trade License: A valid trade license.

• Supplier Data: A list of vendors with their Tax Registration Numbers (TRN).

• Government Spends: Evidence of payments made to government entities.

• Emiratization: Number of Emirati workforce in your company.

• Wage Protection System (WPS): WPS reports covering the last 12 months with verified employee salary and benefits.

Step-by-Step Process to Obtain an ICV Certificate UAE

After completing the ICV certificate requirements UAE, follow the step-by-step process to obtain your certificate:

1. Prepare Required Documents

Gather audited financials in compliance with International Financial Reporting Standards (IFRS). Make sure they are prepared by an authorized auditor in the UAE. Also, if you are among the new SMEs with over 9 months of operating period, ensure that you provide audited accounts as well.

2. Fill Out the ICV Template

Download a standard template of the ICV certificate from the official MoIAT e-Services Portal. Then, fill in the information, including third-party local spend, local investment, Emiratization, and expatriate contributions.

3. Appoint an Approved Certifying Body

Choose a MoIAT-approved certified local auditing firm from over 20 of them, including HISAB Taskmaster CA Advisors, PwC, Deloitte, and others.

4. Verification and Evaluation

Submit your financials and completed ICV template to the respective local auditing body. Then, they will review your data and calculate an accurate ICV score.

5. Receive the ICV Certificate

Once the calculation process is completed, you will receive your official ICV certificate, which remains valid for the next 14 months.

Note: After you receive your ICV certificate, make sure that you submit it to the ICV portal to get access to bidding for government and enterprise tenders.

ICV Certificate Cost in UAE

The ICV certificate cost in UAE completely depends on the size of your company, operational complexity, and the number of branches you operate. Also, the Ministry of Industry and Advanced Technology (MoIAT) does not have a fixed price, as it depends on the certifying bodies that you consider for your ICV score calculation.

Here is a breakdown of the approximate ICV certificate cost in the UAE: 

• Micro and Small Enterprises (SMEs): AED 500 to AED 2,000
• Medium-Sized Companies: AED 2,000 to AED 5,000
• Large Corporations: AED 5,000 to AED 10,000

Note: Ask for quotes from different certifying firms to secure competitive pricing.

Can an ICV Certificate Be Renewed?

An ICV certificate remains active or legally valid for 14 months. After this period, it expires, and SMEs become ineligible to bid for government or semi-government projects. Therefore, an ICV certificate renewal is a mandatory process if you want to access tender bidding.

Here is the process of ICV certificate renewal:

1. Gather Documents: Prepare audited financial documents through an accredited UAE auditor.

2. Update the ICV Template: Download and fill out the standard ICV template with updated information.

3. Submission: Submit the filled template for calculation to a local and MoIaT-authorized auditing firm.

4. Certificate Issuance: After they review and approve the template, submit it to the ICV portal and start bidding for government tenders and projects.

Conclusion

An ICV certificate Abu Dhabi or anywhere in the UAE is a performance metric of a supplier that measures its economic contribution. It allows businesses to bid for government and semi-government tenders, increasing credibility, market reputation, and alignment with the UAE’s economic goals for development and innovation.

HISAB Taskmaster CA Advisors is a highly trusted firm that helps businesses obtain ICV certification in Dubai with the utmost ease. Therefore, if you are an SME and want accurate and reliable ICV score calculation and renewal services, reach out to us to secure our expert services.

Also Read : How to choose the right ISO Certification Consultant in Dubai?