The Role of ICV Certification in UAE’s Economic Diversification Goals

 

The Role of ICV Certification in UAE’s Economic Diversification Goals

The United Arab Emirates (UAE) has long been recognized as a global hub for trade, energy, and finance. In recent years, however, the nation has been actively shifting its focus toward economic diversification—reducing dependence on oil revenues and strengthening non-oil sectors. At the heart of this transformative strategy lies the In-Country Value (ICV) Certification program, a key policy initiative that is driving long-term growth for local businesses and creating more opportunities within the national economy.

What Is ICV Certification?

The ICV (In-Country Value) Certification is a government-led initiative, launched by ADNOC and later adopted across various UAE government entities. The program evaluates and scores companies based on their contribution to the local economy in areas such as:

  • Local Emirati employment

  • Local procurement

  • Investment in the UAE

  • Manufacturing and assembly within the country

Certified companies receive an ICV score, which is now a crucial factor in tender evaluations for government and semi-government contracts.

UAE's Vision for Economic Diversification

The UAE’s Vision 2030 outlines ambitious goals to build a more diversified, knowledge-based economy. This includes:

  • Enhancing industrial capabilities

  • Promoting local talent development

  • Strengthening small and medium-sized enterprises (SMEs)

  • Reducing economic reliance on hydrocarbons

To achieve this, the UAE needs a robust ecosystem where local content development and sustainable supply chains thrive. That’s exactly where ICV Certification plays a pivotal role.

How ICV Certification Supports Diversification

1. Encouraging Local Procurement

By rewarding businesses that source materials, services, and products locally, ICV drives demand for UAE-based suppliers, helping create a self-sustaining domestic market.

2. Job Creation for UAE Nationals

Companies receive higher ICV scores when they employ Emirati talent. This aligns with the UAE’s Emiratisation goals, enhancing local workforce participation in key industries.

3. Boosting Local Manufacturing

Businesses that invest in manufacturing within the UAE benefit from better ICV scores, fueling the growth of industrial sectors and reducing import dependency.

4. Attracting Foreign Investment

Multinational companies seeking government contracts are now encouraged to invest locally or partner with UAE-based firms, bringing in capital and expertise while building UAE’s internal capacity.

5. Supporting SMEs and Innovation

By favoring local suppliers and service providers, ICV Certification provides more opportunities for SMEs to grow, innovate, and compete on larger platforms.

ICV and Key UAE Sectors

While ICV initially launched within the oil and gas industry, it has now expanded to cover:

  • Construction & infrastructure

  • Defense & aerospace

  • Utilities and energy

  • Transport & logistics

This cross-sectoral application ensures that the ICV program contributes to broad-based economic growth across the country.

Challenges and Opportunities

Challenges:

  • Smaller companies may struggle with compliance costs and documentation.

  • Understanding the ICV scoring mechanism can be complex for newcomers.

Opportunities:

  • Businesses that align early with ICV policies gain a competitive advantage in tenders.

  • It encourages long-term partnerships between international firms and UAE companies.

Conclusion

The ICV Certification program is more than a regulatory requirement—it's a strategic tool for building a resilient, diversified economy. By incentivizing local value creation, job generation, and domestic investment, the UAE is ensuring sustainable growth beyond oil.

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