The In-Country Value (ICV) Audit is a crucial process in the United Arab Emirates (UAE) aimed at promoting local economic growth and development. It assesses the level of contribution that companies operating in the country make to the UAE’s economy by measuring the percentage of their total expenditure retained within the country.
Purpose and Objectives of ICV Audit
The ICV Audit serves several key purposes:
- Enhancing Local Economic Participation: It encourages companies to utilize local resources, engage Emirati workforce, and invest in the UAE’s infrastructure and services, thereby stimulating economic activity and job creation.
- Promoting Sustainable Development: By fostering a culture of local value creation, the ICV Audit contributes to the UAE’s long-term economic sustainability and diversification.
- Ensuring Fair Competition: It levels the playing field for businesses by incentivizing them to generate economic value within the country, promoting transparency and fairness in the business landscape.
ICV Audit Methodology and Requirements
The ICV Audit methodology involves a comprehensive evaluation of a company’s expenditure patterns, considering various factors such as:
- Procurement of Goods and Services: Assessing the proportion of goods and services procured locally from UAE-based suppliers and manufacturers.
- Emirati Employment: Evaluating the company’s commitment to hiring and training Emirati nationals, contributing to the development of the local workforce.
- Investment in the UAE: Assessing the company’s investments in UAE-based projects, infrastructure, and businesses, driving economic growth and diversification.
- Expatriate Contribution: Evaluating the company’s efforts to retain expatriates’ salaries and expenditure within the UAE, maximizing the economic benefits of their presence.
Benefits of Complying with ICV Audit
Companies that successfully demonstrate a high level of ICV gain several advantages:
- Enhanced Reputation and Credibility: Demonstrating a commitment to local economic development enhances a company’s reputation and credibility among stakeholders, including investors, partners, and customers.
- Increased Market Access and Opportunities: Compliance with ICV regulations can open doors to new business opportunities, government contracts, and preferential treatment in tenders and procurements.
- Alignment with UAE’s Economic Vision: Complying with ICV aligns a company’s business objectives with the UAE’s national economic vision, fostering a positive relationship with the government and regulatory authorities.
- Contribution to Sustainable Growth: By actively contributing to the UAE’s economic growth and development, companies can secure their long-term success and stability in the country’s dynamic market.
The ICV Audit plays a pivotal role in shaping the UAE’s economic landscape by promoting local value creation, encouraging sustainable development, and ensuring fair competition. Companies that embrace the principles of ICV and demonstrate a genuine commitment to contributing to the UAE’s economic growth can reap significant benefits, positioning themselves as valuable partners in the country’s journey towards a diversified and prosperous future
