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What is ICV Certificate in Dubai, UAE?

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What-is-the-ICV-Certificate-

ICV Certificate is the requirement of every company willing to become a supplier for ADNOC. Issue of certificate by Certifying Body (empaneled by ADNOC). Suppliers who do not possess ICV Certification will be allowed to participate in ADNOC tenders; however, their ICV Score will be Zero in the bid evaluation. ICV certification needs to be obtained by each company, which intends to do business with ADNOC or any of its group companies. 

How is ICV certification issued in Dubai, UAE?

ICV Certification will be issued based on the last audited financial statements, which should not be older than two years from the certification year. ICV certification is valid for 18 months from the date of the issue or till a new set of financial statements is issued (whichever is earlier). The supplier company shall be responsible for obtaining the revised ICV certificate within two months of the issuance of audited financial statements.

What is the process of ICV Certification in Dubai, UAE?

  • Data Population: The population of the ‘Supplier Submission Form’ given by ADNOC is dependent on the last audited financial statements. It requires several details that are present in the previously audited financial statements. The step is the first and most vital in the whole process of ICV certification.
  • Agreed-upon procedures: The data populated in the previous stage compared against Agreed-upon procedures. The step can substantially increase the chances of a satisfactory ICV certification.
  • Report delivery: The delivery of a Factual Finding Report based on the work carried out during the process. The report helps in identifying shortcomings within the enterprise. It plays a vital role in the awarding of ICV certification.
  • Form validation: ICV Certification will be signed and stamped by ADNOC approved bodies that will have a validity of one year from the issue date. The tedious process of ICV certification ends with form validation.

How does ICV certification work in Dubai, UAE?

ADNOC providers are required to demonstrate how they are helping deliver In-Country Value by declaring their ICV Certificate and their guaranteed In-Country Value score for the past financial year. Business partnerships with ADNOC include an ICV appraisal as part of the tender evaluation and award process. Suppliers should approach the ADNOC designated confirmation organization for ICV affirmation with the necessary documentation with points of interest. It documents must be given by the supplier showing the motivation behind the certification. 

ICV Certification score needs to be finished by an ADNOC approved certifying body on an annual basis and submitted by the provider to ADNOC for each proposal. ICV score computation involves evaluating the economic value added within the UAE for the products or services offered by the organization.

Is it a Unified Certification Process in Dubai, UAE?

Yes, all suppliers are heavily encouraged to undertake an ICV evaluation and certification process to attain an ICV certification. The evaluation will examine the value-added contribution to the UAE in areas including:

  • Local manufacturing
  • Procurement of third party goods and services
  • Local investment and it is growth
  • Emiratization of workforce
  • Expatriate contribution
  • Generation of income from outside UAE

What are the Goals of ICV Certification in Dubai, UAE?

  • Employment Generation – ICV Certification should create extra employment opportunities for citizens of the UAE in the private sector.
  • GDP diversification – ICV Certification should support UAE GDP diversification through manufacturing more products and services within the UAE. It allows the UAE government to achieve some of its macroeconomic objectives, namely sustainable economic development, an acceptable balance of payments situation, and employment.
  • Strategic considerations:  ICV Certification should create strategically critical links of the value chain for chosen categories. It generates a competitive advantage by performing strategically vital activities more cheaply or better than its global competitors.

ICV Enhanced Formula in Dubai, UAE

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%

For enquiries, call +971 5679 52590 / E-mail: info@aviaanaccounting.com

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