In 2018, Abu Dhabi National Oil Company started the ICV certification. It helps to encourage local service providers to emphasize more on getting an ICV certificate. This ICV certification program’s goals are to excite economic development in the Emirates and help resident businesses do corporate activities with big enterprises. Suppliers will benefit from extra consideration during the valuation of the tenders by getting an ICV certificate in the UAE. There are several requirements to get ICV certification in the UAE that demand deep consideration to stay compliant. In this article, we will see the complete guide for ICV Certification Requirements.
What is an ICV Certification Requirements in the UAE?
ICV Certification in the UAE is a program launched to measure the influence of goods and services produced by businesses along with local investment and employment. An ICV Certificate indicates the level of ICV accomplished by a company functioning in the UAE. The main purpose of the ICV Certification in the UAE is;
- It promotes GDP growth by finding more products and services locally.
- It expands foreign direct investment in the UAE and boosts the GDP contributions of the remote sector.
- It increases Emiratis’ access to private-sector employment opportunities.
- It reinforces local labor force capabilities
- It boosts research and development expenses, and national industry competitiveness.
Who is eligible for the ICV Certification Program in the UAE?
The ICV certification program is intended to benefit certain companies of a certain size. The following are eligible for the ICV Certification Program in the UAE such as;
- Suppliers and contractors of ADNOC (Abu Dhabi National Oil Company) and its subsidiaries are eligible for the ICV Certification Program in the UAE.
- Companies in some sectors bidding on administration contracts, such as construction, carriage, and healthcare are also eligible for the ICV Certification Program in the UAE.
What are the requirements to get an ICV Certificate in the UAE?
Here is the step-by-step procedure to follow to get an ICV Certificate in the UAE;
- Gather all the essential documents
The main requirement to get your ICV certificate is start with gathering all the essential and relevant documents or financial statements. Well-known audit firms such as Farahat & Co. can help you in formulating these documents. They would guarantee your compliance with the relevant standards such as International Financial Reporting Standards. The noteworthy thing is that if your business is just established, you can use management accounts for the purpose of completing your application.
- Use up-to-date financial statements
Farahat & Co. will recommend you use ICV certification templates during the application period. The auditors would use the up-to-date financial statements. These financial statements should be at least depict the last 2 years’ statements that have been audited and are IFRS compliant. For new companies that were established within the past 10 months without audited financial statements, the records from management accounts can be used but they must not be older than 9 months.
- Application evaluation
The UAE’s Ministry of Industry and Advanced Technology (MOIAT) has established procedures and measures for assessing ICV applications. All the businesses applying for an ICV certificate in the UAE need to get the ICV template tested along with the supportive documents. After assessing your application, the ICV board will approve it. You have to evaluate the unsigned ICV certificate and approve it before sending it to the selected certifying entity from the provided list.
- Issuance of the ICV Certificate
After receiving the approved document sent to the certifying entity, the certifying body will finally obtain your ICV certificate. With the official and legal ICV certificate, your business can contribute to bidding processes with related entities.
How is ICV Calculated?
The calculation of ICV fluctuates from country to country and sometimes from industry to industry. In the UAE, it includes evaluating some factors such as;
- The ratio of Emirati labor working in a project or business procedure.
- The ratio of goods and services acquired locally.
- The handover of technology and information to resident entities.
- Capitalization in training and expansion of local staff.
- Contribution to Emirati research and development activities.
Once these influences are assessed, an ICV score is determined. Businesses obtain an ICV Certificate if the whole process is done consequently.
Conclusion
Getting an ICV certification in the UAE is a complex process. It demands to fulfill all the requirements and expert support. Suppliers have to meet all requirements such as Gathering all the essential documents, using up-to-date financial statements, and others. Farahat & Co. is one of the best in the list of leading audit firms in the UAE. Their proficient team provides ICV certification services with the assistance of ICV Certifying bodies in the UAE. They are well-experienced and well-informed specialists in the UAE’s regulations and guidelines.
