What is National In-Country Value (ICV)?

Origin

Originally launched and adopted by Abu Dhabi National Oil Company (ADNOC) in 2017, now ICV program is part of Ministry of Industry & Advanced Technology (MOIAT), Government of UAE.

Objective

Aimed at supporting the National Industry and National Economy by Emiratization, local procurement, developing local industries, spending on R&D, attracting foreign investments, and increase private sector contribution to GDP.

ICV Certification : Advantages, Eligibility, and Pre-requisites

Certification by ICV is based on six main factors, i.e., local investment, manufacturing, export revenues, expat contribution, third-party spends and most importantly Emiratization.

Advantages being ICV certified- source MoIAT

• Companies joining ICV will benefit from increased demand for local products & services to expand their businesses & win federal & government contracts & tenders.
• Entrepreneurs as well as small and medium-sized companies will have greater opportunities for growth by virtue of the localization of value chains
• The program represents an opportunity to promote local companies and introduce their products and the quality of their services
• ICV provides companies with many competitive advantages, including provision of financing incentives and energy savings for holders of the program's certificate
• The program certificate holders will have a contractual advantage with the companies and federal authorities participating in the program
• The program will increase companies' ability to provide new and quality job opportunities that contribute to improving their business. Increasing the opportunity for local companies to enter into international partnerships with international companies looking to take advantage of the competitive advantages of joint companies

Eligibilty and pre-requisite for ICV Certification:

Supplier Registration

• Must register on MoIAT through the Supplier Sign On portal (SSO).

IFRS compliance

• Audited Financial Statement (AFS) must be prepared as per IFRS.
• Management Accounts (MA) required (Duly signed and stamped) if:
• Firm is operational for less than 10 months then MA for 9 months or less
• combined/consolidated Financial Statements, then split MA for entity, for which ICV Certificate is sought.

Qualified Opinion/Emphasis of Matter

• If AFS has qualified opinion then MoIAT pre-approval is mandatory, and if Emphasis or other matters then depends.

NAFIS Registration

• Mandatory registration in NAFIS is required.

License Requirement

• Separate ICV Certificate is required for each entity/ trade license. Exception to this rule, only branch figures can be added if exist in same Emirates and has identical activities mentioned in the Trade License.

ICV Certificate Validity

• The ICV Certificate is valid for 14 months from the AFS sign off date and in case of management account or interim audit then the same as year-end date.

Additional Check Points

Other details of Audited Financial statement must be checked per details below:

• AFS should not be older than 2years from the certifying year, e.g. certifying year is 2023 then AFS should pertain to either 2021 or 2022.
• Signed by Management and Auditor
• Auditor Registration Number
• Valid Trade License
• Name of Entity in Trade License to be the same as the Name in AFS
• Legal Status and Activities – confirm if there are any branches, combinations/consolidations etc.

Certification by ICV is based on six main factors, i.e., local investment, manufacturing, export revenues, expat contribution, third-party spends and most importantly Emiratization.

ICV Improvement

Organization to commit on the improvement planned within the six main factors, i.e., local investment, manufacturing, export revenues, expat contribution, third-party spends and most importantly Emiratization.

Prerequisites for ICV improvement

• Company profile and organization structure
• Latest Audited financial statement
• Previous year’s ICV working

Weightage

• 40% Weightage and preference is given to ICV certified firms in tendering process, over other entities
• 60% for commitment towards ICV Improvement plan

Segments

ICV covers four segments, namely, Micro, small, medium enterprises, Private sector, public sector & Government sector

Industries

Why Al Raqamiya

ALR’s Advisory & Assistance in ICV Certification and improvements

• Alignment of Financial practices to IFRS (International Financial Reporting System).
• Auditing books of accounts compliant to international accounting standards.
• Business Excellence, impact analysis and Process Re-engineering.
• Evaluate entities, investments and ensure legal compliance.
• Promoting Emiratization and expat contribution through manpower planning & streamlining people process.
• Driving foreign investments and manufacturing to Emirates, by supply chain optimisation, extending ICV certification to clients’ suppliers.
• Increasing forex through export promotions by global sales mix optimisation.