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ICV Certification

ICV Certificate

Name: Aviaan Accounting
Address: Binary Tower, Marasi Drive, Business Bay, Dubai, AE
Telephone: +971 567952590
Price range: AED

Aviaan Accounting plays an important role in achieving the ICV certificate and developing ICV score improvement plan for companies which are working directly as suppliers or indirectly as sub-supplier with the UAE Government and Semi-Government Departments. We facilitate in the following ways:

Recommendation of restructuring in organizational processes
Drafting the ICV template
Continuous monitoring to maintain a high ICV score
Drafting the ICV improvement plans
Expert staff with capabilities to enhance ICV score

Getting a high ICV score puts companies in an advantageous position during the ADNOC tender process. Aviaan Accounting develops an understanding of its clients regarding ADNOC, Aldar, Economic Department, Abu Dhabi Ports In-Country Value Certification, and the factors affecting ICV score.

ICV in UAE is one of the bases in ADNOC’s acquisition process. The evaluation pertains to all awarded contracts. Dealing with ADNOC directly or indirectly will have a different impact on the ICV responsibilities of suppliers. Suppliers will need to get an ICV certification in UAE and formulating an ICV improvement plan in UAE themselves or take the help of contractors supporting them depending on their dealing with ADNOC.

What is ICV Certificate?

Abu Dhabi National Oil Company (ADNOC) introduced a program called the In-Country Value Certificate program, which has been in effect from the 1st of April 2018. The requirement of the program is that all UAE based goods suppliers acquire an In-Country Value Certificate from the ADNOC ICV Certificate agency. Along with this, the suppliers are required to get the calculated ICV score demonstrating their contribution to the previous financial year to deliver the ICV. Suppliers who are not interested in procuring the ICV Certification will be able to take part in the ADNOC group tender, though their ICV score will be considered to be zero.

What is ICV Improvement Plan in UAE?

The ICV Improvement Plan in UAE is a contractual commitment linked to payment against the achievement of actual ICV achieved for the ICV committed as per the ICV Improvement plan. The two types of ICV improvement plans are company-based, required for annual ICV certificates in UAE issued during the agreement period, and an agreement-based, additional requirement from the supplier to engage the project auditor to audit project spend for verification purposes. The ICV Improvement Plan in UAE is considered binding, applied to arrive at an ICV score, and monitored quarterly to ensure the business is on track.

ICV Certifying Bodies in the UAE

The in-Country Value program in the UAE has been the most practical tool for ensuring economic growth in the true spirit. The UAE has Certifying Bodies chosen by ADNOC for giving ICV certification-related services. The core services imparted by ICV Certifying Bodies in the UAE are Reviewing the information of proposed suppliers, Examining the procedures utilized by suppliers in determining ICV score, Issuing ICV certificates, and Renewing the ICV certificates of suppliers. The ICV Certifying Bodies in the UAE also support ADNOC or any other ICV program adopters and attend meetings with other Certifying Bodies.

What is ICV Certification process and how is it executed?

The in-Country Value (ICV) program in UAE aims to grow and diversify the UAE’s economy. ICV Certification process in UAE involves data population of the supplier submission form, the fulfilment of agreed-upon procedures, formulation of a factual finding report, and finally on satisfaction, signing of the ICV Certification in UAE by ADNOC approved bodies. ICV Certification execution in UAE by suppliers includes a consultation with the stakeholders, examining the current practices, re-examining the information populated in the supplier submission form, and at last discussing the certification process.

What is the Purpose of the In-Country Value Certificate Program in Abu Dhabi, UAE?

To encourage the private sector partnership in the economy built of the UAE, the ICV Certificate program in Dubai, UAE was launched by the ADNOC in January 2018, effective from the 1st of April 2018. This program targets creating opportunities and a favorable environment for the local good suppliers and sub-suppliers who are involved in trade in the UAE in a very direct process or act as an intermediate contributor. This program is a part of the ADNOC’s 2030 growth strategy which aims at building socio-economic space for the local nationals and catalyze the development and transfer of knowledge among the locals. ADNOC believes that the local traders play a great role in the GDP growth and for deriving economic diversification and thus are reactive to provide support and value to the local national so that their contribution to the economy can be enhanced.

ICV Certificate in Abu Dhabi, UAE has been implemented in UAE with the following objective:

Strategic Concerns: All the strategically crucial parts of the value chain will be localized for selective categories.

GDP Diversification: Encouraging business entities to source additional goods and services within UAE to support UAE GDP

Emiratization: Promotion of employment opportunities for locals/ Emiratis in the private sector of the UAE

Why is ICV Certificate in Dubai, UAE important?

ADNOC launched the ICV Certificate UAE program so that the local nationals can participate in the favorable exchange of socio-economic trade and thus can potentialize their abilities to promote growth in trade. The main focus of the program is to harness the value of oil and gas reserves so that the local traders are able to support the diversification in the economy of the United Arab Emirates. This is a good opportunity for the local traders to expand their network and socialize with the reforms set for their welfare. The ICV certificate in Abu Dhabi, UAE needs to be attained in order to participate in the tender of the ADNOC or any of its group entities.

Update on ADNOC ICV Certificate Agencies in Dubai, UAE

Abu Dhabi Department of Economic Development has decided to standardize the process of getting an ICV Certificate in UAE, following the leadership vision and economic goals of the Government. Getting the certificate from ADNOC ICV Certificate agencies in Dubai, UAE is integral but it’s not sufficient to secure the ADNOC tender, for that company needs to maintain a high ICV score. Moreover, other criteria for achieving the tender will be low price.

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ICV Certificate Sample in Abu Dhabi, UAE

ICV Committee in Dubai, UAE has provided an ICV Certificate sample for the supplier’s submission which needs to be filled in accordance with the latest audited financial statements. ICV Certificate in Dubai, UAE includes all suppliers, the purpose is to evaluate the capability of the business in the following areas:

Goods Manufactured in UAE
Emiratizations
Local investments
Export of Goods and Services from UAE
Expatriate Contribution
Third-party spending

Who needs to have a unified ICV Certificate?

Firms or companies that are directly or indirectly working as suppliers or sub-suppliers to the government and semi-government like ADNOC Group committees, Abu Dhabi Department of Economic Development, and Aldar properties. Trading companies working as intermediate suppliers for the Abu Dhabi ports, Environment Agency Abu Dhabi, and all other government departments of the United Arab Emirates are required to have the In-Country Value certificate in Dubai, UAE.

Guidelines on ICV Certificate Process in Abu Dhabi, UAE

ICV Certificate process in Abu Dhabi, UAE starts with filling the supplier submission sample provided by the ADNOC in accordance with financial statements to show the true nature of the company’s financial position. All the information provided by the company will then be compared to the pre-defined procedures. Based on that a report will be submitted reflecting the flaws within the company and its contribution towards fulfilling the ICV Certificate purpose in Dubai, UAE.

Key Areas of ICV Certificate Program in Dubai, UAE

Following are the different strategies considered by ADNOC:

Organizing training and learning sessions/programs for UAE nationals to enhance the skill and expertise of the local workforce.
Encouraging CAPEX and OPEX development plans to attract foreign investment in the UAE.
Establishing a sustainable and productive relationship of mutual benefit with suppliers.

The ICV Certificate Services Dubai, Abu Dhabi, Sharjah, UAE

IFRS based Audited financial statements

The audited financial statements form the entire basis of the In-Country Value certificate in Dubai, UAE. The financial statements which have been audited must conform to the latest international financial reporting standards (IFRS). For in Country Value certificate in Abu Dhabi, UAE, these statements must not be older than two years. For example, to apply for an ICV certificate in 2020, the audited statements must be for the year 2018 or later.

In-Country Value Certificate for group companies in Dubai, UAE

There are companies with several branches in the same city or state performing the same activity. The licenses to the branches are allotted so as to declare them independent business entities. To overcome this ambiguity, only one combined ICV certificate in Dubai, UAE is allotted to the company in that particular Emirate.

Newly established companies and management accounts for them

For younger or newly established companies or firms that are less than ten months old and do not have audited financial statements, management accounts are provided to them in this case for a period of up to 9 months for the sake of ICV calculation. Other management accounts that are older than nine months need to get audited mandatory.

The validity of Unified ICV Certificate Dubai, Abu Dhabi, Sharjah, UAE

The validity of an ICV Certificate in Dubai, UAE is up to a period of 14 months, applicable from the date of issue of the audited financial statements. The Certification can be re-certified if the owner of the company wishes to do so, but the period validity that is 14 months will remain the same.

Following departments are required to acquire a unified ICV Certificate in Abu Dhabi, UAE:

ADNOC Group Companies
Abu Dhabi Department of Economic Development
Aldar Properties
Abu Dhabi Ports
Environment Agency Abu Dhabi

How is the ICV Certificate Dubai, Abu Dhabi, Sharjah, UAE issued?

Information regarding the performance of the company for the previous financial year is to be submitted by the suppliers under the ADNOC’s ICV program in Abu Dhabi, UAE. To ensure that the information submitted by the suppliers is true and authentic, a panel of independent Certification bodies, established by ADNOC is appointed. Aviaan Accounting facilitates in verifying the information submitted by the suppliers for the calculation of their ICV score in Dubai, UAE.

How are the ICV Certificate scores in Abu Dhabi, UAE calculated?

The ICV scores in Dubai, UAE are calculated according to a pre-defined methodology set by the ADNOC. The economic value adds within the United Arab Emirates for the goods or services offered by the company are assessed in order to calculate the ICV scores. Areas like services offered, goods manufacture, and exports. Investments are taken into consideration to calculate the ICV score in Abu Dhabi, UAE.

The crux behind the ICV Certificate Dubai, Abu Dhabi, Sharjah, UAE

The aim of the ICV Certificate in Dubai, UAE is to uplift the wills and interests of the local nationals to contribute their bit to the upliftment of the economic scenario in the Emirates. The value obtained from oils and gas reserves is used in the development of the local nationals and thus for the localization of the capabilities for some critical supplies in the intermediate or main functions in the key industry. As this initiative of in-country Value Certificate in Abu Dhabi, UAE is focused on deriving optimal value from oil and gas reserves the contribution of the local chain supplies will surely help in the achievement of the required goal which is focused towards the encouragement of the private sector services and trade.

Important aspects of In-Country Value Certificate in Abu Dhabi, UAE

In order to be considered for ADNOC orders/contracts, all the suppliers need to get an ICV Certificate in Dubai, UAE from an approved ADNOC agency. However, in case of no certificate, the suppliers can still apply for group tender but will be considered zero in ICV score.
The financial reports used to get an ICV certificate should not be older than 2 years, must be audited, accurate, and free from errors.
The validity period of the ICV certificate in Abu Dhabi, UAE is up to 18 months from the date of the issue or from the date of new financial statements.
All the suppliers must get their revised ICV certificate within two months after the issuance of new audited financial statements.
ICV certificate in Dubai, UAE is mandatory for all those companies who wishes to do business with ADNOC and intends to take part in the tender.

General information for the suppliers in Dubai, UAE

The program ICV Certificate in Abu Dhabi, UAE accommodates all suppliers in the United Arab Emirates. Goods manufactured in Dubai, Export of goods and services from Dubai, Third-Party spends (Procurement of goods and sub-contractors), Local investment, and Emiratization of the local workforce are examined to assess, the capabilities of the business of the suppliers.

Our Services in Dubai, UAE 2021

ADNOC has prescribed a supplier submission template (ICV Certificate Sample) that must be filled according to the latest financial audit statements. This is where Aviaan Accounting comes to your assistance. Template submission guidelines can be explained to you. Aviaan accounting helps you to know the factors that determine your company’s ICV score in Dubai, UAE and how can the ICV score be increased. Drafting the ICV template based on the records of the financial year can be improved so that when it is presented to the ICV auditor, the requires ICV score in Abu Dhabi, UAE can be achieved as expected.

Aviaan accounting can help in

Improvising the ICV plans in Dubai, UAE that are required to be submitted with the Tender of the ADNOC, department of economic development, and Aldar properties.
Avoiding the seizure of ICV milestone payments by demonstrating and explaining the working criteria for the improvement of the ICV plan.
Making you understand the factors that will help improve your ICV scores in Abu Dhabi, UAE.
Avoiding and eliminating any such factors that help in demoting your ICV scores.

ICV Enhanced Formula

		Goods	Services	Formula	Bonus
Goods/Services	Goods Manufacturing	50%	N/A	(Manufacturing cost incurred with in UAE+ Emirati Cost + 0.6∗Expat cost)/Total Revenue	Total Annual revenue from outside UAE (Export Revenue)/ Total Annual revenue from UAE (revenue from inside + outside customers) Excluding Re – Exports Plus No. of Emiratis/100
Goods/Services	Third Party Spend	N/A	50%	(∑ Value of good & services procured per vendor & subcontractor x ICV of the vendor & subcontractor + Emirati Cost + 0.6* Expat cost)/Total Revenue
Company	Investment	25%	25%	Net Book Value of Assets in UAE /Net Book Value of Total Assets (Basic 10%) Plus Top up 15% on progressive basis (USD 5M – USD 50M) (Top Up 15%)
Company	Emiratization	15%	15%	Up to AED 200K Salary & benefits – 2% Above AED 200K till AED 20M –progressive Above AED 20M – 15%
Company	Expat Contribution	10%	10%	In terms of head counts, progressive increase as follows: a) 1 to 5– 1 to 3% b) 6 to 50 – 4 to 6% c) 51 to 200 – 7 to 9% d) Above 200 – 10%

Reference

ICV Formula: https://idb.added.gov.ae/en/icv
ICV Certification User Guidelines: https://idb.added.gov.ae/-/media/Project/TAMM/IDB/ADLC/20200603-ADLC-Program-User-Guideline-Unifed-ICV.pdf
ADNOC ICV – https://www.adnoc.ae/en/InCountry-Value
Industrial Development Bureau – https://idb.added.gov.ae/en/icv