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ICV CERTIFICATION

Unlocking the Benefits of National In-Country Value (ICV) Certification in the UAE

In the United Arab Emirates (UAE), having an In-Country Value (ICV) Certificate is vital, especially for government and ADNOC tender submissions. The ICV Program aims to boost the UAE’s economy by localizing more goods and services, creating job opportunities for Emiratis in the private sector, and promoting the localization of key functions across different industries. Started under the Ministry of Industry and Advanced Technology (MoIAT) in 2021, this program has now been rolled out nationwide.

What Does the ICV Certification Program Offer?

Under this national initiative, certifying bodies in the UAE issue ICV Certificates to companies. This program significantly boosts companies’ ICV Scores through Emiratization of the workforce and local investment. Audit firms play a crucial role in ensuring companies meet the necessary requirements for obtaining the ICV certification, including submitting pre-audited financial statements.

Key Objectives of ICV Certification

The ICV certification program aims to achieve several key objectives:

 

  1. Promote job opportunities for Emiratis in the private sector.
  2. Diversify the GDP.
  3. Provide local businesses with technical expertise.
  4. Strengthen regional supply networks.

 

Having an ICV certificate demonstrates a company’s contribution to the UAE economy, giving them a competitive advantage during the bidding process.

How to Apply for an ICV Certificate in the UAE?

To apply for an ICV certificate in the UAE, suppliers must meet certain conditions and follow specific steps. Here’s a guide to help you navigate the process:

  1. Multiple Legal Entities: If a supplier has multiple legal entities, each entity needs its own ICV certificate. Even if the owner is the same, each license is considered a separate legal entity.
  1. Branches in the Same Emirate: If a company has branches in the same Emirate conducting similar operations and owned by the same entity, they may receive a combined ICV certificate from the MoIAT for that Emirate.
  1. Financial Records: Ensure that the scores submitted in the ICV certificate match exactly with the audited financial records. These financial statements must adhere to international financial reporting standards (IFRS).
  1. Timeliness of Financial Statements: Audited financial statements should not be more than two years old as of the certification year. For example, to be eligible for ICV certification in 2020, financial statements should not be older than 2018.
  1. Young Companies: Companies less than ten months old may not have audited financial statements. They can submit Management Accounts for up to a 9-month period for ICV computations. Audits should be performed on management accounts older than nine months.
  1. Validity Period: The ICV certificate is valid for 14 months from the date the audited financial statements are produced. Suppliers can recertify using the same audited financial statements during this period.
  1. Certifying Organization: Choose an accredited certifying organization to provide the ICV certificate in the UAE. Once selected, suppliers cannot switch certification organizations without valid reasons.
  1. Goods Manufacturers: Suppliers producing completed goods for clients are classified as goods manufacturers under the ICV certification program. They must possess an industrial license to qualify.
  1. Service Providers: Suppliers who are neither goods manufacturers nor hold an industrial license are considered service providers under the ICV certification program.

By following these steps and meeting the necessary criteria, suppliers can successfully apply for an ICV certificate in the UAE.

How to Get an ICV Certificate in the UAE?

To obtain an ICV certificate in the UAE, the Ministry of Industry and Advanced Technology (MoIAT) has streamlined the process, making it easier for suppliers. Leading ICV certification service providers in Dubai can offer guidance on the necessary steps. Here’s a breakdown of the essential procedures to acquire the ICV certificate:

  1. Disclose the audited financial accounts of the company or supplier in accordance with the International Financial Reporting Standards (IFRS).
  2. Fill out the certificate application form according to the current requirements and include the financial statement.
  3. Ensure compliance with the recommendations of each relevant authority when using the certificate.

The ICV score has gained significant importance in the bidding process of ADNOC. All vendors intending to engage with ADNOC must submit the supplier submission form and liaise with an ADNOC-certified body to obtain an ICV certificate.

It’s important to note that ICV certificates are exclusively obtainable in the UAE through ICV-accredited auditors or audit firms. The ICV auditor or audit firm will only utilize the audit report of an entity provided by an authorized external auditor or audit firm recognized by the UAE government to issue the ICV certificate.

Remember, ICV certificates are issued only by accredited auditors or audit firms in the UAE. Square International Auditing and Advisory is one such firm providing ICV services. Choosing Square International ensures expertise and reliability.

Take the first step towards ICV certification and economic contribution today! Contact us at +971 50 708 2400 for a free consultation.

Why Choose Square International?

With over 13 years of experience, Square International guarantees the best service for your ICV certification needs. We’re here to help you navigate the process smoothly and efficiently.