ICV Certificate UAE: Requirements, Calculation, and Application Guide

If your business aims to supply goods or services to major UAE government and semi-government entities (like ADNOC, DEWA, Etisalat, or Mubadala), pricing is no longer the only factor. Your In-Country Value (ICV) Score can make or break your bid.

The National ICV Program is designed to boost economic diversification by rewarding companies that contribute to the local economy.

What is the ICV Certificate?

An ICV certificate is an official document issued by a MoIAT-approved certifying body (like Farahat & Co) that quantifies your contribution to the UAE economy. It generates a score from 0% to 100%.

Why do you need it? When tenders are evaluated, your financial bid is weighted against your ICV score. A company with a higher price but a better ICV score can typically win the contract over a cheaper competitor with zero ICV.

Which Entities Require ICV?

ICV is mandatory for suppliers to:

• ADNOC and its subsidiaries
• DEWA (Dubai Electricity & Water Authority)
• Etisalat and Du
• Mubadala portfolio companies
• Emirates Steel Arkan
• Abu Dhabi Ports
• Various federal government ministries

More entities are joining the program annually. Check the MoIAT ICV website for the current list.

The ICV Formula: How is the Score Calculated?

The score is based on your audited financial statements from the last financial year. It assesses four main pillars:

Detailed Scoring Breakdown

Scroll to see all columns →

Note: Weights vary by sector. Oil & Gas companies have different weightings than service companies.

1. Manufacturing Contribution (weight varies)

• Do you manufacture in the UAE?
• Cost of goods manufactured within the country vs. imported raw materials.
• Companies with local production facilities score significantly higher.

2. Third-Party Spend (weight varies)

• Who do you buy from?
• Spending with other ICV-certified UAE suppliers boosts your score.
• Spending with foreign suppliers hurts your score.
• Even local purchases from non-certified suppliers score lower.

3. Investment (Asset Book Value)

• Net Book Value of your assets in the UAE (Equipment, Buildings).
• New investments made during the year.
• Leased assets contribute less than owned assets.

4. Emiratization & Expat Contribution

• Emiratization: Salaries paid to UAE Nationals (Weighted heavily—typically 2-3x normal multiplier).
• Expat Contribution: Salaries paid to expats.
• Bonus: Top-up for hiring Emirati fresh graduates or women.

The Application Process

Step 1: Audited Financials

You MUST have audited financial statements for the last 2 years (or less if newly established). These must be signed by a licensed auditor. Note: The ICV audit is separate from your statutory financial audit, but relies on those numbers.

Step 2: Fill the Supplier Submission Template

Download the official Excel template from the MoIAT website. Fill in the data based on your specific "General Ledger" figures. Key tabs include:

• Company Information
• Procurement Data (mapping each vendor to local/foreign)
• Manpower Data (Emirates vs. Expats by department)
• Investment/Assets

Step 3: Appoint a Certifying Body

You cannot certify yourself. You must engage an authorized Certifying Body. Farahat & Co is an approved ICV Certifying Body.

Step 4: Agreed Upon Procedures (AUP)

The certifying body performs an "Agreed Upon Procedures" engagement to verify that the numbers in your Excel template match your audited financial statements and supporting documents (payroll records, invoices).

Step 5: Certification

Once verified, the certificate is issued digitally through the MoIAT portal. It is valid for 14 months from the issuance of the Audited Financial Statements.

Strategies to Improve Your ICV Score

Short-Term (This Year)

1. Local Supply Chain: Audit your vendors. Switch from foreign suppliers to local, ICV-certified suppliers. Even if the local supplier is slightly more expensive, the ICV boost might be worth it.
2. Vendor Certification Push: Encourage your key local vendors to get ICV certified. Their certification improves YOUR score.
3. Hire UAE Nationals: Even one Emirati hire can boost your score significantly due to the multiplier effect.

Long-Term (Strategic)

1. Invest in Assets: Leasing equipment reduces your asset base. Buying assets (if financially viable) increases your Investment score.
2. Local Manufacturing: If you import finished goods, consider local assembly or packaging to claim manufacturing contribution.
3. Training Programs: Structured training for Emiratis can count toward your score.

Industry-Specific Tips

Oil & Gas Contractors

• Focus heavily on local manufacturing/fabrication.
• Subcontractor ICV scores matter—use certified subcontractors.

IT & Technology

• Emiratization is your main lever; manufacturing is typically minimal.
• Ensure your data center investments are captured.

Trading Companies

• Your score depends almost entirely on local procurement.
• Source from certified local distributors instead of importing directly.

Case Study: Trading Company Score Improvement

Before Engagement:

• ICV Score: 22%
• All goods imported from China
• One Emirati receptionist
• Losing bids to competitors with higher ICV

Actions Taken:

1. Switched 60% of procurement to UAE-based ICV-certified distributors
2. Hired 2 Emirati sales coordinators
3. Purchased delivery vehicles instead of leasing

After One Year:

• ICV Score: 51%
• Won 3 major government contracts previously out of reach
• Additional revenue: AED 4.2 million

Common Mistakes

• Group Accounting: You generally cannot get one ICV certificate for a whole group. Each legal entity (license) usually needs its own, unless they share costs and manufacturing locations in a specific way required by the guidelines.
• Missing Invoices: If you claim a purchase is "Local," but can't produce the invoice, the certifying body will classify it as "Foreign" (worst case).
• Late Application: The certificate takes 2-4 weeks to issue. Don't apply the week before a bid deadline.
• Outdated Supplier List: Vendor ICV status changes yearly. Verify before claiming the score benefit.

Frequently Asked Questions

How long does ICV certification take?

From document submission to certificate issuance: typically 2-4 weeks. Complex cases (manufacturing, multiple entities) may take longer.

Can a new company get ICV certification?

Yes, but you need at least one year of audited financials. Start-ups in their first year can use management accounts certified by the auditor.

What if my score is very low?

A low score is still better than no score. Submit anyway, then work on improvement strategies for next year. Some tenders have tiered preferences—even 15% ICV may qualify you for certain contracts.

Do I need separate ICV for each emirate?

No. One ICV certificate covers your entire UAE operations. However, if you have multiple legal entities (e.g., Dubai LLC and Abu Dhabi LLC), each needs its own certificate.

Conclusion

The ICV program is reshaping the B2B landscape in the UAE. It is not just a certificate; it is a competitive advantage that can mean the difference between winning and losing major contracts.

Related Resources

• Step-by-Step Audit Process Guide - Understanding the audit procedures for ICV certification
• How to Choose the Best Audit Firm in Dubai - Select an approved ICV certifying body
• External Audit Services - Statutory audit requirements for ICV applications
• Due Diligence Services - Vendor verification and supply chain assessments
• Internal Audit and Controls - Strengthen procurement processes for better ICV scores

Get Certified Farahat & Co is a MoIAT-approved Testing & Certification body. We don't just issue the certificate; we advise you on how to structure your procurement and HR to maximize your score for next year.