The In-Country Value (ICV) Certification was implemented in the emirate of Abu Dhabi in 2018 by the Abu Dhabi Oil Company. From since the demand for ICV Certification Services in UAE has spiked since the certification holds more value for businesses to pave their way to success in the market.
The program has made considerable advancements since it began. The idea not only encourages Emiratization but also diversifies the GDP and gives providers a chance to win contracts with semi-government and government entities.
The ICV program has partnered with numerous government entities and well-known national organizations from various sectors. To put into action a united In-Country Value (ICV) Program, several organizations have joined forces that include The Abu Dhabi Department of Economic Development (ADDED), the Abu Dhabi National Oil Company, the Abu Dhabi Ports Company PJSC, Aldar Properties PJSC, Emirates Nuclear Energy Corporation, and Mubadala Investment Company.
ICV Certificate in UAE
The ADNOC advises that suppliers obtain an ICV certificate from recognized ADNOC entities. When participating in group tenders, suppliers who do not have the certificates will have their ICV score dropped to 0.
Companies must undergo an assessment process that measures their compliance with the program's requirements to obtain the ICV Certification. The Certification can be renewed after two years. The Certificate is valid for 14 months and can be renewed after that period. The certifying entity will periodically assess the company's dedication to in-country value during this period.
After receiving updated, audited financial statements, suppliers are required to get a revised ICV certificate within two months.
Any company that wants to participate in tenders with ADNOC or other Abu Dhabi government entities must now have an ICV certificate.
BMS Auditing is an ADNOC approved ICV Certifying body to offer ICV Certification services to submit audit, get approval & obtain ICV Certification in UAE.
Objectives of the ICV Program
- Increase access to employment opportunities in the private sector to promote the nationalization of the workforce.
- Encourage the sourcing of more goods and services from the UAE to help the UAE's GDP become more diverse. This involves fostering local industry and encouraging local sales, which boosts the economy as a whole.
- Irrespective of whether they are located domestically or globally, Companies have the option to obtain the ICV Certificate. But, certain guidelines must be followed. The ICV score of Tier 1 suppliers, who provide goods and services directly to the program's partners, must be disclosed. On the other hand, Tier 2 and lower-level suppliers might get an ICV certification to increase their ability to compete in tender processes.
- Encourage the localization of strategically important value chain components for particular categories. This entails locating and developing crucial regions within particular industries that are strategically crucial for the development and sustainability of the country.
ICV Certification for Group Companies/Branches in the same Emirate.
Each license with common ownership is recognized as a separate legal entity. However, it is acceptable to obtain a consolidated ICV certificate for the company in that Emirate if it has many branches in the same Emirate with identical operations and ownership details on their licenses. Individual audit reports based on a single trade license are therefore necessary.
ICV for New Trade License
An ICV certificate for a new trade license is not bound by a minimum time limit. ICV can be calculated using the management accounts for a period of up to 9 months, even for recently established businesses that are less than 10 months old and do not yet have audited financial statements. But, the management accounts must first be audited if their duration is greater than nine months before they may be used for calculating ICV.
Importance of Audited Financial Statements
ICV certification is solely based on the company's audited financial statements. The maximum age of these financial statements from the certification year should be two years, and they must comply with IFRS. For instance, the audited financial statements that are taken into account for ICV certification in 2021 cannot be older than 2019. The audited financial statements must be standalone reports that give a thorough assessment of the company's financial performance.
BMS Auditing prepares the most precise and accurate audited financial statements through ICV audit services in UAE handled by the ICV approved auditors.
ICV Certification Process
ADNOC suppliers are required to provide their ICV Certificate and their assured In-Country Value score for the most recent fiscal year to demonstrate how they contribute to in-country value. An ICV appraisal is a part of the evaluation and awarding process for tenders when working with ADNOC, ALDAR, DED, or Musanada.
To obtain the ICV certification, vendors should get in touch with the designated confirmation organization that has been approved by ADNOC. To conduct the audit and verification, the organization needs proper documents and information from the supplier.
The ICV Certification score must be obtained every year from a certifying authority that has been approved by ADNOC, and suppliers must submit it to ADNOC with each proposal. The economic value created in Dubai as a result of the organization's goods or services is evaluated as part of the ICV score calculation.
Is acquiring ICV Certification mandatory?
ICV certification is not mandatory in UAE, however, it is highly recommended for companies planning to take part in government tenders. This is primarily because the ICV score of a company is considered throughout the evaluation process for the majority of public sector contracts and tenders.
Companies that score higher have a better chance of winning government contracts, while those who don't have the certification may be at a disadvantage compared to competitors who do.
ICV Certifying Body in UAE
You must go through a thorough evaluation conducted by the appropriate governing entities if you're thinking about getting ICV certification. The level of your local content will be evaluated based on the submission of several documents, including financial statements and other important company records.
BMS Auditing is an ADNOC Approved ICV Certifying Body in UAE. We have in-class ICV Consultants in UAE to offer thorough assistance throughout the entire process of launching your company in the country. In addition to offering professional advice on how to maximize your score on the assessment, we help you collect all the required documents. We offer services that guarantee that you're well-prepared and supported during the ICV certification process. So, Please don't hesitate to contact us today to avail our services!