Dubai's ICV Certificate Requirements for Suppliers and Contractors

 

Dubai's ICV Certificate Requirements for Suppliers and Contractors

As the UAE continues to drive economic diversification and strengthen its local economy, the In-Country Value (ICV) Program has become a key initiative. For businesses operating in Dubai especially suppliers and contractors obtaining an ICV certificate is increasingly essential for securing contracts with government entities and large enterprises, particularly in the oil and gas, construction, and manufacturing sectors.

In this article, we’ll explore what the ICV certificate is, why it matters for suppliers and contractors in Dubai, and what you need to do to become certified.

What is the ICV Certificate?

The ICV (In-Country Value) Certificate is a formal document that evaluates a company’s contribution to the UAE economy. It is part of a broader initiative led by the Abu Dhabi Department of Economic Development (ADDED) and adopted across the UAE, including Dubai. The program aims to:

  • Promote local sourcing of goods and services

  • Encourage employment of UAE nationals

  • Boost investments in the UAE economy

The certificate is mandatory for businesses seeking to work with certain government entities and semi-government bodies such as ADNOC, Aldar, and other strategic partners.

Why Suppliers and Contractors Need the ICV Certificate

For suppliers and contractors in Dubai, holding an ICV certificate is increasingly becoming a competitive advantage and often a requirement for bidding on public and semi-public tenders. Here’s why it matters:

  • Tender Eligibility: Many major entities prioritize or require ICV scores in procurement processes.

  • Higher Evaluation Scores: A strong ICV score can increase your chances of winning tenders.

  • Improved Market Positioning: Certification shows commitment to supporting the UAE’s long-term economic vision.

  • Preferred Supplier Status: Certified businesses are often preferred for ongoing partnerships and contracts.

ICV Certificate Requirements for Suppliers and Contractors

To obtain the ICV certificate, your business must undergo a third-party evaluation of several key areas. The following criteria are typically assessed:

1. Goods and Services Procurement

  • The percentage of locally sourced goods and services is a major contributor to your ICV score.

  • Contracts with UAE-based suppliers help boost your value.

2. Investment in the UAE

  • Investment in UAE-based assets such as facilities, equipment, and technology is considered.

  • Long-term physical presence and infrastructure enhance scoring.

3. Emiratization

  • Employment of UAE nationals, especially in managerial and technical roles, improves your score.

  • Training and development initiatives for UAE citizens are also taken into account.

4. Expatriate Contribution

  • Salaries paid to expatriate employees are considered, with a portion weighted in the scoring model.

5. Net Profit Retained in the UAE

  • The percentage of net profit retained within the UAE adds to the overall ICV score.

Steps to Obtain the ICV Certificate in Dubai

  1. Prepare Financial Statements

    • Audited financial statements for the last financial year are required.

    • These must follow International Financial Reporting Standards (IFRS).

  2. Hire an Approved Certifying Body

    • Select a certified ICV auditor from the list provided by the Ministry of Industry and Advanced Technology (MoIAT).

  3. Submit Documentation

    • Provide all necessary data and documents related to procurement, HR, investments, etc.

  4. Receive the Certificate

    • After evaluation, your company will be issued an ICV certificate valid for 14 months from the end of the financial year.



Final Thoughts

Whether you're a construction firm, logistics provider, or industrial supplier, obtaining an ICV certificate in Dubai is no longer optional—it’s a strategic move that can shape your future success in the UAE market. Understanding and meeting the ICV requirements not only opens doors to new opportunities but also aligns your business with the nation’s economic growth objectives.

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