In an era of rapidly changing business environment, the United Arab Emirates, a renowned global business hub, has recognized the significance to align their businesses with sustainable corporate practices and to prioritize company’s contribution to the local economy. For this purpose, the Ministry of Industry and Advanced Technology (MoAIT) introduced ICV Certificate UAE, also known as In-Country Value Certificate, to increase UAE’s dedication towards economic growth, development and a prospering business ecosystem within the UAE.

ICV Certification Process Steps

The following steps outline the process of obtaining an ICV certificate:

1. ICV Certificate Application

The company is required to select certified auditing firm in UAE, licensed by the Ministry of Industry and Advanced Technology (MoAIT), which is responsible for technically reviewing and verifying ICV certification application and then issues the ICV Certificate UAE. The ICV Certificate UAE is valid for 14 months starting from the date when the last audited financial statement was provided to the certifying body. With proper justifications, a company can change the selected certified auditing firm during their valid ICV Certification period. 

2. Issue Audited Financial Statements

To issue the ICV Certificate UAE, certified auditing firm in UAE validates the audited financial statements provided by the companies as per IFRS (International Financial Reporting Standards). These financial statements should not be older than two years; however, if a company is a newly established entity, who do not have audited financial statements, the company is eligible to apply for ICV certification by auditing the management accounts that cover a period of 9 months or more.

3. Complete the ICV Template

The companies who aspire to achieve ICV Certificate UAE are required to complete the ICV Certificate Template which calculates the ICV scores of the company as per predetermined formula. All the information provided in the ICV certificate template should be in correspondence with the company’s latest audited financial statements. The ICV certificate template requires company’s general information, i.e. name as per license, license number, company type, company based in, etc.  

4. Evaluation and Verification

The company should have all the documents for the evaluation and verification of ICV certificate template by the authorized certifying body in UAE. Misrepresentation or inaccurate information provided by the company will result in appropriate punitive measures as well as being banned for future ICV certification applications. The ICV Certification verification process takes between 3 to 15 days, during which the certifying body evaluates all the information provided by the company and then issues ICV Certificate UAE.

5. Issuance of the ICV Certificate UAE

In order to issue ICV Certificate UAE the certifying body calculates the ICV score which measures a company’s contribution to the UAE’s economy. After the evaluation, verification and calculation of ICV scores, the authorized certifying body issues the ICV Certificate UAE to the company. This certification process ensures that only the deserving businesses receive valued recognition in the UAE.

Key Components of ICV Certification Process

The ICV certification process requires the authorized certifying body to evaluate the information provided in ICV certificate template that reflects the commitment of the company to development and sustainability within the UAE. The ICV score increases by taking into account the following components:

• Emiratization: The greater is the number of Emirati employees in the company, the higher is the ICV score calculated. Due to this factor the organization makes effort to employ more Emirati nationals within its workforce thus, contributing to economic growth and stability within UAE. 
• Localization: If the company manufactures or assembles goods within the UAE their ICV score increases. This encourages the investors to invest in local market thus, strengthening UAE’s economic growth.
• Local Suppliers: The ICV Certificate UAE encourages the companies to acquire goods and services from local suppliers. In order to enhance their chances in securing bids, the companies make effort to contribute to UAE’s business ecosystem by decreasing imports.
• Investment in Research & Development (R&D): The greater is the organization’s contribution to innovation, technological advancement, and knowledge transfer the higher is their chance of securing bids in tenders.
• Emirati-Owned Businesses: The companies that are involved in businesses owned by Emiratis, whether through joint ventures, partnerships, or other forms of collaboration, is another way for having higher ICV scores.
• Training and Development: Companies who involve their employees in continuous learning and development of new skills adds to the company’s ICV score.
• Corporate Social Responsibility (CSR): Companies that are involved in CSR activities gain benefit to their local community and environment and also earn ICV scores.

In order to gain almost 40% chances of securing bids in the tender process, the companies are encouraged to undergo ICV certification. On the other hand, the companies who do not have the ICV Certificate UAE scores zero in the ICV score column. The submission of audited financial statements, validated by an authorized certifying body, that are in accordance with the ICV certificate template parameters stand a better chance for a higher ICV evaluation score.