Is ICV Certification in Dubai Becoming Mandatory for All Sectors?

Is ICV Certification in Dubai Becoming Mandatory for All Sectors?

In recent years, ICV certification in Dubai has attracted significant attention—especially in sectors tied to government procurement and local economic development. But is it now mandatory for all sectors? Let’s explore the current landscape and what’s coming in 2025.

What Is ICV Certification in Dubai?

The In‑Country Value (ICV) Program is a UAE government initiative—launched by ADNOC and managed by the Ministry of Industry and Advanced Technology—to encourage economic diversification, job creation, and supply-chain localization by giving procurement preference to suppliers that contribute locally . ICV certification measures a company’s contribution across factors like local procurement, Emiratisation, investments, local revenue and exports .

Is It Mandatory Across All Sectors?

Not Yet – But It Matters Where It Counts:

  • It is mandatory for suppliers doing business with ADNOC and affiliated entities, as well as for companies bidding in government and semi-government tenders—especially in industries such as oil & gas, construction, healthcare, logistics, and infrastructure .

  • For other sectors, ICV certification is not strictly required. However, if you don’t hold a valid certificate, your ICV score defaults to zero—which significantly diminishes your competitiveness in tenders evaluated using ICV scoring .

  • Free‑zone or mainland companies fighting for contracts with government-linked entities may still need ICV certification—even if their sector doesn’t formally require it .

Is the Scope Expanding?

Yes. Initially targeted at oil/fuel and major infrastructure clients, ICV certification in Dubai is increasingly becoming a standard procurement criterion beyond oil & gas. As federal and emirate-level entities expand the program, several trends are emerging :

  • Broader sector coverage, including telecom, real estate, utilities and healthcare.

  • Private-sector alignment, as many government-linked companies expect suppliers to be ICV‑certified to remain competitive .

  • Green ICV initiatives rewarding sustainable practices and innovation as part of certification .

Why Businesses Should Treat It as Mandatory

Even if ICV certification in Dubai isn’t universally required yet, businesses have strong incentives to get certified:

  • Tender eligibility: Many entities won’t consider bidders without ICV certification—or score them zero, eliminating them from competition.

  • Contract advantages: ADNOC and others may award contracts or allow price matching to high‑ICV suppliers even if their bids are higher .

  • Reputation and trust: Certification demonstrates compliance with national goals—such as Emiratisation and local value creation—enhancing credibility with major public sector players.

  • Financial perks: Companies may benefit from incentives such as funding support from Emirates Development Bank tied to strong ICV performance .

How to Prepare for ICV Certification

  1. Ensure audited financial statements per IFRS—note that from 1 January 2025 only stand-alone audited accounts (not consolidated/mgmt reports) will be accepted .

  2. Fill out the ICV template, collating data on procurement, Emiratisation, capital investments, exports, and revenue.

  3. Submit to an ADNOC‑approved certifying body for on-site audit and validation.

  4. Recertify annually—ICV certificates are valid for 14 months from the date of audited statements .

Summary Table

Issue

Current Situation

Mandatory across all sectors?

No—but required for ADNOC/public sector tenders in key industries

Applies to other sectors?

Not obligate—but zero score penalizes non-certified suppliers

Scope expanding?

Yes—ongoing growth into new sectors and private government-linked firms

Strategic benefit?

Significant—tender access, reputational value, financial incentives

Final Thoughts

While ICV certification in Dubai isn’t yet mandatory for all sectors, it is effectively mandatory for supply chain participation in many public‑sector tenders, especially in sectors like oil & gas, construction, healthcare, logistics, and infrastructure. With expanding coverage and stricter new rules in 2025 around audited financials, businesses would be well-advised to obtain and maintain ICV certification proactively.


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