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ICV Consultant

In Country Value (ICV) CERTIFICATION IN UAE

The National ICV is a certificate issued to suppliers in which their contribution to the local economy is evaluated. The certified suppliers are then given an advantage during the award of contracts and purchases based on their ICV score.
An ICV certificate held by an entity, is a measure of the entity’s contribution towards the local economy based on a set of pre-determined criteria.

What is ICV Certificate?

Abu Dhabi National Oil Company (ADNOC) introduced a program called the In-Country Value Certificate program, which has been in effect from the 1st of April 2018. The requirement of the program is that all UAE based goods suppliers acquire an In-Country Value Certificate from the ADNOC ICV Certificate agency. Along with this, the suppliers are required to get the calculated ICV score demonstrating their contribution to the previous financial year to deliver the ICV. Suppliers who are not interested in procuring the ICV Certification will be able to take part in the ADNOC group tender, though their ICV score will be considered to be zero.
ICV in UAE is one of the bases in ADNOC’s acquisition process. The evaluation pertains to all awarded contracts. Dealing with ADNOC directly or indirectly will have a different impact on the ICV responsibilities of suppliers. Suppliers will need to get an ICV certification in UAE and formulating an ICV improvement plan in UAE themselves or take the help of contractors supporting them depending on their dealing with ADNOC

What is ICV Certification process and how is it executed?

The in-Country Value (ICV) program in UAE aims to grow and diversify the UAE’s economy. ICV Certification process in UAE involves data population of the supplier submission form, the fulfilment of agreed-upon procedures, formulation of a factual finding report, and finally on satisfaction, signing of the ICV Certification in UAE by ADNOC approved bodies. ICV Certification execution in UAE by suppliers includes a consultation with the stakeholders, examining the current practices, re-examining the information populated in the supplier submission form, and at last discussing the certification process.
The UAE strives to expand the regional economy, strengthen supply chains, enhance self-reliance in the private sector and give specialized expertise to the regional companies.

WHO NEEDS A UNIFIED ICV CERTIFICATE?

Companies working directly as suppliers or indirectly as sub-supplier with the following Govt. and Semi Govt. Departments are required to acquire the unified ICV certificate.

• ADNOC Group Companies
• Abu Dhabi Ports
• All other Govt Departments of Abu Dhabi
• Aldar Properties
• Companies submitting tenders through Musanada (Abu Dhabi General Services Company)
• Environment Agency Abu Dhabi
• Abu Dhabi Department of EconomicDevelopment

How is ICV measured?

The In-Country Value of an entity (referred to as the ‘Supplier’) is measured based on the annual value of procurement made by the supplier from other entities (‘Vendors’) based in the UAE. It also takes into account the total value of fixed assets in the UAE, corresponding depreciation and the annual manpower costs expended on Emiratis and Expats. Additionally, a supplier may also be eligible for a bonus score based on the revenue generated from outside UAE, Emirati headcount and annual growth in investments.

WHAT IS THE VALIDITY AND PREREQUISITE OF ICV AUDIT?

• An ICV certificate is valid for a period of 14 months from the date of issue of the audited financial statements.
• For getting ICV certificate the financial statements of the entity must be audited, in accordance with IFRS, by an auditor licensed by the Ministry of Economy.

AREAS CONSIDERED FOR UNIFIED ICV CALCULATIONS

(a) Goods Manufactured (only for Suppliers holding Industrial License)
(b) Third-Party Spend (only for Suppliers holding non-Industrial License)
(c) Investment
(d) Emiratization
(e) Expatriate Contribution
(f) Bonus – i) Revenue from outside UAE. ii) Emirati Headcount

As Trusted ICV Consultants RBS Auditing will help you

• The client’s financial statement will be audited and signed.
• Our Team will help you understand about the ICV and the determining factors that affect the ICV score.
• We will suggest on how to improve ICV score and include the incremental effect of each step in our impact analysis report. This includes mainly, among other steps, the recommendation of restructuring in organizational processes to increase ICV score.
• Draft the ICV template, based upon the records of financial year under certification that can be presented to ICV certifying body to ensure the achievement of ICV score as per drafted template.
• Draft the ICV improvement plans that is required to be submitted with the tenders of the ADNOC.

RBS Auditing has exclusive tie up with ABACUSINTERNATIONAL, one of the certifying bodies for ICV

For more information, please feel free to contact with us.