If you are wondering how to get an ICV certificate in the UAE, you are in the right place. The In-country certificate (ICV) program was launched by the Abu Dhabi National Oil Company (ADNOC) in 2018. It benefited individuals and businesses and helped the economy grow. The ICV program was introduced in Qatar, Oman, the United Arab Emirates, and Saudi Arabia. In the UAE, having an ICV certificate is necessary for ADNOC and government tender submissions.
The main goal of ICV in Dubai is to bring more employment opportunities to the private sector and diversify the economy by focusing on local goods and services. Participating companies in the UAE are also encouraged to join the program, localize their business, and help with economic growth. The ICV certificate is managed by the Ministry of Industry and Advanced Technology (MoIAT) to initiate the favorable value of oil and gas in the United Arab Emirates.
ICV Certificate in Dubai
An ICV certificate is an official document issued by the Abu Dhabi National Oil Company (ADNOC) in the UAE that verifies the in-country level accomplished by a company running in the country. It measures the contribution of goods and services produced by companies in the UAE. Additionally, it estimates the employment and local investment in the oil and gas industry.
Abu Dhabi Department of Economic Development formed the ICV certificate in Abu Dhabi and Abu Dhabi Local Content Program with the following goals,
- To promote GDP growth, focus on local goods and services, increase the GDP contribution of small and medium businesses and the private sector, and increase foreign investments in Abu Dhabi.
- Increasing employment opportunities for Emirates nationals in the private sector and growing competence of the local labor force.
- It includes increasing research and development (R&D) and advanced technology spending.
What Businesses Should Get an ICV Certificate in Dubai?
All contractors and suppliers of ADNOC and its subsidiary companies must get an ICV certificate in Dubai. It includes companies providing goods and services to ADNOC, such as engineering companies, drilling contractors, and logistics companies.
Companies from other sectors that wish to work with the UAE government can also obtain the ICV certificate. For example, companies bidding on government contracts in sectors such as healthcare, construction, and transportation are required to get an ICV certificate in the UAE.
ICV certificate requirements include the collaboration of suppliers with specific dealers. You can quickly get your ICV certificate through any certified entity approved by the MoIT.
Eligibility Requirements and How to get ICV Certificate in UAE?
Specific ICV certificate requirements exist for companies to be eligible to get it. These requirements are given below,
- If a company wants to get an ICV certificate in Dubai, it must be registered with a certain government authority and have a trade license.
- They must be physically present in the UAE, providing service or working on a product.
- Besides the general requirements, the companies must fulfill additional requirements regarding their sector.
- Each business sector’s specific ICV certificate program describes the requirements that businesses must fulfill to be certified. For example, the ICV certificate Dubai takes into account many things, including the company’s local content in goods and services, investments in local amenities and infrastructure, and the level of Emiratization of the laborers in the oil and gas sector.
- ICV certificate requirements also include a thorough audit of the company independently conducted by an ICV-certified entity. Taking into account the ICV requirements and conducting an independent audit, the ICV certification body will analyze the company’s performance and award the certificate based on the ICV score.
- The main purpose of ICV certification is to ensure that the companies are dedicated to the growth and improvement of the UAE and local economies.
How to get ICV Certificate in UAE?
Businesses can get an In-Country Value Certificate in Dubai by observing the ICV criteria established by ADNOC and submitting their ICV score to ADNOC. To fulfill the criteria, companies may need to change their business operations, such as increasing their local investments, hiring and training workforce from the UAE, and trading with local suppliers. Here’s the detailed process of getting an ICV certificate in Dubai.
Disclose Audited Financial Records
One of the first ICV certificate requirements is the disclosure of the company’s audited financial statements. If a company is newly established and less than 10 months old, it is required to create its financial records using management accounts and the rules set by the International Financial Reporting Standards (IFRS).
IFRS offers universally accepted rules for financial reporting. Using accounting standards provided by IFRS increases the transparency and reliability of a company’s financial statements, which are essential for gaining the trust and credibility of stakeholders.
Filling out the ICV Template
To determine a company’s ICV score, an ICV template (a standard form) is filled out. The template records different aspects of a company’s operations, including investments in community services, local sourcing, employing emiratis, and other elements that help grow the local economy of the UAE. Companies must follow the instructions for the ICV certification program when filling out the ICV form.
Assessment of ICV Form
The third step involves assessing the ICV from one of the recognized certifying entities in the UAE. These certified entities are independent companies that are granted permission to evaluate and certify businesses’ ICV compliance.
These certifying bodies are equipped with the knowledge and tools required to evaluate ICV templates and other required data provided by the company. After reviewing the information provided by the company, the certified body will perform an on-site audit to confirm its authenticity.
Receive the ICV Certificate Dubai
The last step in the ICV certification process is obtaining the In-Country Value certificate. The certified body will issue the certificate after examining the ICV template and other required documents and ensuring the company is complying with the program’s requirements.
The ADNOC ICV certificate shows the company’s dedication to boosting the UAE’s local economy and its advantage in obtaining government tenders and other deals.
Cost of an ICV Certificate
The cost of an ICV certificate is AED 500, which is a nominal fee set by the Ministry of Industry and Advanced Technology (MoIAT). The cost of attracting small and medium enterprises (SMEs) to get an In-Country Value Certificate (ICV) in the UAE is minimal.
Validity of an ICV Certificate Dubai
The validity of an ICV certificate is about 14 months from the submission date of audited financial statements or after the issuance of new financial statements. Renewing an ICV certificate after one year is essential to receive the benefits.
Companies are required to submit new ICV templates and updated financial records to show that they are in compliance with the program’s guidelines. The certifying entity will verify the data and issue the ICV Certificate. It is important for companies to maintain the ICV criteria throughout the year to ensure their ICV score meets the renewal requirements.
Key Aspects for Obtaining an ICV Certificate
If companies want to obtain an ICV certificate in the UAE, they must consider the following key aspects.
IFRS Financials
The financial statements submitted by the companies for ICV must be according to the International Financial Reporting Standards, the required accounting standards in the UAE.
One Certificate Eligibility for Branches
A company with two or more branches in one emirate under one ownership can get an ICV Certificate in the UAE.
Owner Salary Consideration
Owner’s salary will be considered if they are registered under the Wage Protection System (WPS). The minimum amount is AED 120,000 each month for each company owner.
Depreciation Costs
Internal costs, apart from the supplier’s depreciation cost, will not be included in the calculations.
Number of Workers
Several employees will be considered for a year.
Payments to Government Authorities. The supplier’s payments to the government free zone authorities with a license will be considered 100% ICV.
Credit to Mainland Suppliers
UAE Mainland suppliers will get a 10% reward for their ICV score.
Summary
In the end, we hope this article has given you insight into how to get an ICV certificate in the UAE. The program has advanced since its implementation, and authorities are continuously making new changes to it. The growth in the National ICV program has brought positive changes to the UAE’s economy by providing an attractive investment environment.
The ICV program has increased confidence in the national industrial sector, making the UAE a perfect destination for investments. It has also increased job opportunities for Emiratis in the private sector and increased the competitiveness of Emirati industries in the regional and international markets. If you need further guidance regarding ICV certification, contact Al-Riyady. Our experienced team will help you maintain your ICV score according to the requirements of ADNOC. We also provide Accounting Services, Tax Consultancy, Auditing Services, and more.
