ICV Certificate in UAE: What Auditors Look for and How to Prepare

ICV Certificate in UAE: What Auditors Look for and How to Prepare

The ICV certificate in UAE (In-Country Value certificate) is a crucial requirement for companies looking to do business with government and semi-government entities, especially in sectors like oil & gas, construction, and manufacturing. Issued as part of the UAE’s localization strategy, this certificate measures the economic value a company adds to the country.

If you're planning to apply or renew your ICV certificate in UAE, it's vital to understand what auditors look for and how to properly prepare your documentation.

What Is an ICV Certificate in UAE?

The ICV certificate in UAE is part of the UAE government's In-Country Value Program, introduced by ADNOC and later adopted by entities like Mubadala and the Ministry of Industry & Advanced Technology (MoIAT). It evaluates a company's contribution to the local economy based on factors such as:

  • Emiratization (hiring of UAE nationals)

  • Use of local suppliers

  • Investment in the UAE

  • Local manufacturing capabilities

This certificate is required for companies wishing to participate in tenders from ADNOC, Etihad Rail, and other ICV-adopting organizations.

What Do ICV Auditors Look For?

ICV auditors are trained to assess a company’s financials, operations, and compliance. Here's what they focus on during the assessment:

1. Audited Financial Statements

  • Must be prepared under IFRS (International Financial Reporting Standards)

  • Should be no more than 2 years old

  • Must cover a 12-month period

🔸 Tip: Avoid submitting interim or incomplete statements. Make sure they are audited and signed off by a registered audit firm.

2. Manpower Records

  • Breakdown of total employees, with a focus on Emirati employees

  • Details on employee costs and UAE national wages

🔹 Auditors verify your actual payroll records, so be prepared to provide Emirates ID copies, salary slips, or WPS reports.

3. Goods and Services Procurement

  • Data showing how much was sourced from local suppliers

  • Supporting documents like purchase orders and VAT invoices

🔸 Highlight suppliers who are also ICV certified for better scores.

4. Investment in the UAE

  • Value of fixed assets (machinery, facilities, etc.)

  • Office and warehouse lease agreements

🔹 Ensure all fixed asset registers and depreciation schedules are accurate and updated.

5. Revenue from UAE Operations

  • Clear segregation between UAE-based and international revenues

  • Contracts and invoices that support local earnings

 Auditors often ask for sample contracts to validate revenue recognition.

How to Prepare for an ICV Audit

1. Choose a Certified ICV Audit Firm

Select an audit firm approved by MoIAT. Only certified firms are allowed to issue valid ICV certificates.

2. Organize Your Financial Records

Ensure your financial statements are clean, reconciled, and audit-ready. Avoid red flags like inconsistent reporting or missing data.

 3. Gather HR and Procurement Documentation

Collect and organize:

  • WPS records

  • UAE national employment contracts

  • Invoices and contracts from local suppliers

4. Complete the ICV Template Accurately

The ICV template is an Excel-based form provided by the authorities. It must be filled out in line with your audited financials.

 Pro Tip: Review the template with your auditor before the submission to catch errors early.

 5. Keep Evidence Ready

Be ready to provide backup documentation for any claims you make regarding Emiratization, local procurement, or investment.

 Why ICV Certificate in UAE Matters

Holding a valid ICV certificate in UAE gives your business a competitive edge when bidding for tenders. Organizations like ADNOC and MoIAT use your ICV score to evaluate proposals. The higher your ICV score, the more attractive your bid.

 Final Thoughts

Getting an ICV certificate in UAE is more than a compliance formality—it’s a strategic tool that reflects your company’s support of the UAE economy. Understanding what auditors look for and preparing your documentation accordingly can save time, prevent rejections, and help you maximize your ICV score.


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