ICV Certification
ICVCertification
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This incentive has significantly increased the importance and subsequently the demand for procuring the ICV certificate. Please refer to the section below to get a better understanding of the whole ICV certification process.
EBS is considered to be one of the Leading audit firm offering ICV certification consultations. We offer enriched and extensive experience of all the applicable guidelines that can help companies improve their ICV scores. The entire certification process becomes extremely user friendly when conducted in the presence of our trained consultants working with client-side teams
Obtaining an ICV Certificate
Key considerations
for an ICV
The ICV certificate shall be valid for a period of 14 months from the date of issuance of audited financial statements.
ICV certification is based on the last audited IFRS financial statements of the entities and shall not be older than 2 years from the certification year.
ICV Scores are calculated using pre-defined methodology by assessing the economic value added within the country for the goods or services provided by the entity.
For newly established companies (less than 10 months old), who do not have audited financial statements, the management accounts for a period of up to 10 months can be considered for ICV calculations.
Goods manufactured
3rd part spends
Revenue generated
Exports outside UAE
Investments in UAE
Emiratization potential, and Expatriate contribution
Guidelines
ICV Certification can be awarded only by a panel of accredited and empaneled certifying bodies in the UAE
Upon applying for a certification, a supplier would need a separate ICV Certificate for every business license that they own. Every business license will be recognized as a separate legal entity. In case a business has multiple branches operating under one license, a single, combined certificate will suffice.
ICV Certification Templates must be completed by the applicant.
Figures entered in the template must all be taken from a company’s latest IFRS compliant audited financial statements. These financial statements should not be older than 2 years.
Newly established companies, (less than 10 months old), who do not have audited financial statements can take figures from their management accounts instead.
The management accounts should not be older than 9 months. If they are, they will need to be audited by an approved audit firm before they can be used.
The validity of certificate after it has been received is 14 months, (from the date of issuance of audited financial statements). Companies can apply for certification again before this time elapses. They may use the same financial statements as well. However, receiving an updated certificate will not negate the validity of the previously obtained certificate.
Once a company appoints an Empaneled Certifying Body to verify them for certification, the company will not be able to switch to a new certifying body for the duration of their certification (unless they have an adequate reason).
The submission made by a company shall take all costs and revenues of the company during its financial year.
All figures in the ICV Template must be in AED. Exceptions can only be made if specified.
If a company is not able to present consumption details (listed by invoice and vendor), purchases made by the company during that year can be considered instead.
Any assumptions and calculations made in the ICV Template must follow instructions provided in the guideline.
Every figure presented by the supplier must be backed with relevant documentation so that all provided data can be examined thoroughly. At any time during the verification process, a designated representative of the participating entities can ask for a quality review of every ICV Certificate Template being scrutinized by the Certifying Body. The certifying body and supplier will have to share any required information with the representative, whenever it is asked for.
Negligence or tampering in a company’s submission will lead to penalties being awarded to the company in question. These penalties can include a ban preventing them from doing business with ADNOC.
FAQ’s
The ICV certification is a certificate that is issued to certified suppliers after evaluation of their contribution to the local community. This National In-Country Value (ICV) program by the government of the UAE aims to enhance economic performance and support the local economy. More companies are applying for it because it gives them an added weightage during the tender assessment.
The companies are applying for ICV certification because it adds weightage during the tender assessment. However, obtaining an ICV certification is easy in the UAE, and an approved ICV auditor has the authority to conduct certification.
The first and foremost requirement to obtain an ICV certificate is to have audited financial statements. This should be issued in accordance with IFRS by a Ministry of Economy licensed auditor. The entity should register in the Nafis Partner Program, as it is a federal program aimed at empowering Emirati talent to get jobs in the private sector.
There is a smooth process to apply for ICV certification.
Step1. Fill in the ICV supplier template and it should be based on the latest audited financial statements.
Step2. Approach one of the authorized certifying bodies to get the evaluation of the score and performance of agreed-upon procedures.
Step3. Once the score is approved, you will get a digital certificate which is valid for fourteen months from the date of issuance of the audit financial statement.
It depends on the size of the company, the number of employees, and its readiness to provide the required documents to the certification companies. Once all the required documents are submitted and the application will be processed. The process of the application is complete within one month.
The ICV certification program creates more opportunities for local suppliers. They get more chances to have a partnership with foreign businesses to have the advantages of a joint supply chain. The companies holding ICV certificates can have a contractual advantage with the federal authorities and partner companies.
The ICV certificate allows companies to refuse in the tender process. If their ICV score is zero, then it would be difficult for them to get an advantage from their bids. If the company is failing to meet the criteria, then its process would be stopped.