Why ICV Certification is Significant in UAE?
The ICV (In-Country Value) certification in the United Arab Emirates is a vital measure designed to support and boost local economic growth. This certification assesses the extent to which a company’s operations contribute to the development of the UAE’s economy. By encouraging businesses to invest in local resources and engage with the community, ICV certification plays a significant role in advancing sustainability, fostering local partnerships, and enhancing the competitiveness of companies operating in the UAE. Eligibility for ICV Certification ICV certification is open to both local and foreign companies operating in the UAE. Companies that supply goods and services to ADNOC and its subsidiaries are required to obtain ICV certification. This includes suppliers in industries such as drilling, engineering, logistics, and more. Additionally, companies in other sectors that wish to do business with the UAE government, such as construction, transportation, and healthcare, may also be required to obtain ICV certification in UAE. To be eligible for ICV certification, companies must fulfil certain criteria. These include being registered with the appropriate government agency, having a current trade license, and being physically present in the UAE. Each industry sector has specific ICV program guidelines that companies must meet to be certified. These guidelines consider factors such as the degree of local content, investment in infrastructure, and Emiratization efforts in the oil and gas industry. Benefits of ICV Certification Obtaining an ICV certification in the UAE brings several benefits to companies and contributes to the overall growth of the economy. Some of the key benefits include: Validity of ICV Certification An ICV Certificate in the UAE is typically valid for 14 months from the date of issuance of the audited financial statements. It is crucial for companies to renew their ICV certification before it expires to continue benefiting from the program. During the renewal process, companies must submit revised financial statements and update their ICV templates to demonstrate ongoing compliance with the program’s requirements. To ensure a smooth renewal process, companies should maintain compliance with the ICV criteria throughout the year. This includes fulfilling obligations related to local sourcing, investment, Emiratization, and other factors that contribute to the company’s ICV score. Renewing the ICV certification allows companies to continue enjoying the benefits associated with ICV compliance and strengthens their commitment to the growth of the UAE’s economy. Choosing an ICV Certifying Body To navigate the ICV certification process effectively, companies can collaborate with authorized certifying bodies. These certifying bodies are independent organizations approved by the ICV program to assess and certify businesses for ICV compliance. Working with an experienced ICV certifying body ensures that the evaluation process is conducted accurately and efficiently, allowing companies to obtain their ICV certificates within the specified timeframe. Our expert ICV consultants at AMA Audit Tax Advisory, will navigate you throughout the process to achieve the ICV Certification. Conclusion Obtaining an ICV certificate provides companies with various benefits, such as access to government contracts, enhanced reputation, business growth opportunities, and a competitive advantage in the market. It is essential for companies to meet the eligibility requirements, undergo the certification process, and maintain compliance to ensure the validity of their ICV certification. For further information about ICV Certification, read our In-Country Value Program Blog.