How Recent Policy Changes Affect ICV Certification in Dubai

 

How Recent Policy Changes Affect ICV Certification in Dubai

Introduction

In‑Country Value (ICV) certification has become a linchpin for businesses in Dubai aiming to secure government contracts and align with economic diversification goals. Recent policy updates—notably from the Ministry of Industry and Advanced Technology (MoIAT) and Dubai’s economic entities—have reshaped eligibility, documentation, scoring, and strategic incentives. Understanding these changes is essential for ensuring compliance and maximizing your ICV score.

1. Expanded Eligibility for ICV Certification

Dubai has broadened the criteria for who can apply:

  • Foreign firms with local presence—Branches or representative offices of foreign companies are now eligible, alongside Free Zone entities, in addition to firms registered in the UAE.

  • Service providers recognized—Previously focusing on manufacturers, the ICV scheme now includes service companies, evaluating their local contributions such as Emirati employment, training investments, and local procurement. 

Implication: Businesses that once viewed themselves as peripheral to the ICV ecosystem now have a route to certification. Ensuring your entity—as service-oriented or otherwise—aligns with these criteria is key.

2. Stricter Documentation Requirements

The MoIAT has tightened the documentation protocols:

  • More recent financials—Audited statements must now be under 10 months old, down from the earlier 2-year allowance.

  • Cost segregation in books—ICV-related expenses—like Emirati payroll, local procurement, and training—must be separately itemized in your accounting records. 

Implication: Be proactive in aligning your accounting, hiring, and financial reporting processes to reflect these new standards. This avoids audit delays and enhances score transparency.

3. Updated ICV Calculation & Scoring

Several ICV scoring elements now carry new weightings:

  • Investment in UAE—Incrementally weighted at 15% for assets valued AED 5M–150M (up from a flat 10%).

  • Exports—Revenue generated outside the UAE now contributes up to 5% bonus to your total ICV score.

  • Emirati workforce—Bonus increased to 5%, doubling the previous incentive. 

  • Expat contributions—Now assessed via a tiered system, rewarding larger-scale operations with higher ICV contributions. 

  • Implication: Companies should rethink their investment and export strategies. Bolstering Emirati employment or scaling expat hiring may provide strategic scoring benefits.

4. Green & Technology Incentives

The ICV framework now supports broader strategic goals such as sustainability and innovation:

  • Green ICV—Introduced a 3% bonus on ICV score for companies demonstrating sustainability measures—for instance, water and emissions management, recycling, and eco-efficiency.

  • Industrial Technology Transformation Index (ITTI)—Adds up to 5% bonus for companies excelling in tech adoption and sustainable practices under ITTI. 

Implication: Integrate green practices and digital transformation efforts not just for compliance—but as proactive ICV score boosters.

5. Dubai-Specific Procurement Incentives

Dubai’s government has enhanced procurement practices to prioritize local value:

  • The Dubai ICV Programme, launched by the Department of Economy and Tourism (DET) with the Department of Finance, encourages government bodies like RTA, DEWA, and others to prioritize Dubai-based manufacturers, Emirati-owned businesses, and firms employing local talent.

  • Implementation via the TASHAROK shared procurement platform offers preferential buying rates across 42 product categories for pre-approved local suppliers.

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