ICV Certificate UAE 2025 | Complete Requirements & Application Guide

ICV (In-Country Value) Certification is mandatory for companies supplying to ADNOC and Abu Dhabi government entities. This guide covers complete requirements and application process.

What is ICV Certificate?

In-Country Value (ICV) Certificate demonstrates your company's contribution to UAE economy through:

UAE-based manufacturing
Local employment
Emiratization
Investment in UAE
Local supplier usage

Purpose: Prioritize companies creating value within UAE economy for government procurement.

Who Needs ICV Certificate?

Mandatory For:

ADNOC Suppliers: All companies bidding for ADNOC contracts Abu Dhabi Government: Suppliers to AD government entities Major Projects: Many large UAE projects require ICV Tender Participation: Increasingly required for competitive bids

Not Required:

Companies not supplying to ADNOC/AD government Small value contracts (some exceptions) Certain service categories (check specific requirements)

ICV Score Calculation

Scoring Components

Total ICV Score = 100% broken down as:

1. Manufacturing / Goods (35% max)

Local manufacturing: 35%
Local assembly: 17.5%
Local packaging: 8.75%

2. Emiratization (25% max)

UAE national salaries as % of total payroll
Higher weight for management positions
Bonus for Emirati senior executives

3. Investment in UAE (15% max)

Fixed assets in UAE
Operating costs in UAE
Investments in training/development

4. Local Supplier Spend (10% max)

Purchases from UAE suppliers
Higher weight for high ICV suppliers

5. Expat Contribution (15% max)

Expat salaries and benefits
Capped percentage of total

Example Calculation

Trading Company:

No local manufacturing: 0%
2 UAE nationals (12% of payroll): 12%
Office and equipment in UAE: 10%
40% supplier spend with UAE vendors: 6%
Expat salaries: 15%
Total ICV Score: 43%

ICV Certificate Requirements

Documents Needed

Financial Documents:

Audited financial statements (last fiscal year)
General ledger
Trial balance
Bank statements

HR Documents:

Employee contracts
Salary certificates
Emirates ID copies (UAE nationals)
Labor card copies

Supplier Documents:

Supplier invoices and payments
Supplier ICV certificates (if claiming their ICV)
Purchase orders

Asset Documents:

Fixed asset register
Purchase invoices for UAE assets
Lease agreements (if applicable)

Application Process

Step-by-Step

Step 1: Choose Accredited Auditor

Select ICV-accredited verification body
Farahat & Co is an accredited ICV verifier

Step 2: Data Collection (2-3 weeks)

Gather all required documents
Organize by ICV component
Prepare supporting evidence

Step 3: ICV Assessment (1-2 weeks)

Auditor reviews documentation
Calculates ICV score
Prepares verification report

Step 4: Certificate Issuance (3-5 days)

Final report reviewed
ICV certificate issued
Uploaded to ICV Portal

Step 5: Portal Registration

Register on ICV system
Upload certificate
Visible to procuring entities

Total Timeline: 4-6 weeks

Costs

ICV Certification Fees

Verification Fee: AED 8,000 - 15,000

Depends on company size
Transaction volume
Complexity

Audit Support: AED 5,000 - 12,000

If financial statements not already audited
Additional verification work

Total Cost: AED 13,000 - 27,000 (first time)

Renewal: AED 6,000 - 12,000 (simpler process)

Validity and Renewal

Certificate Validity: 14 months from date of issuance

Renewal Requirements:

Must renew before expiry
Based on new fiscal year financials
Similar process to initial certification
Generally faster (3-4 weeks)

Late Renewal: Cannot bid on contracts while certificate expired

Maximizing Your ICV Score

Strategies

Emiratization:

Hire UAE nationals in key roles
Invest in Emirati training programs
Higher salaries for Emiratis increases score

Local Suppliers:

Switch to UAE-based suppliers where possible
Prioritize high-ICV score suppliers
Document all local purchases

UAE Investment:

Purchase rather than lease assets
Invest in UAE training facilities
Demonstrate long-term UAE commitment

Manufacturing:

Consider local assembly/packaging
Even light manufacturing adds significant points
Document value-add activities

Common Mistakes

Incomplete Documentation: Missing invoices, contracts Incorrect Calculations: Misunderstanding scoring formula Late Application: Certificate expired before tender deadline Poor Record-Keeping: Cannot prove local spend/employment Ignoring Renewals: Letting certificate lapse

ICV Impact on Tenders

Tender Evaluation

Price + ICV Score: Most tenders use combined evaluation

Example:

70% weight on price
30% weight on ICV score

ICV Score 60% vs Competitor ICV 40%:

Your ICV contribution: 18 points (60% × 30%)
Competitor: 12 points (40% × 30%)
6-point advantage before price consideration

High ICV can offset higher price

Professional ICV Services

We provide complete ICV certification:

ICV Assessment: Free preliminary score estimate Documentation: Complete preparation support Verification: Accredited ICV audit services Optimization: Strategy to improve ICV score Renewal Management: Timely renewal reminders Portal Support: Registration and uploads

Call: +971 42 500 251 Email: info@auditfirmsdubai.ae

Maximize your ADNOC tender success with expert ICV certification support.

ICV Score Calculation Framework

Component Breakdown

Manufacturing and Production (Maximum 40 points):

UAE manufacturing activities: Up to 25 points
Value-add through processing/assembly: Up to 15 points
Local content percentage calculation: 10-40% range

Investment (Maximum 25 points):

Fixed assets in UAE: Up to 20 points
Machinery and equipment: Up to 15 points
Buildings and infrastructure: Up to 10 points
Investment multiplier: 1.5-3.0x based on asset type

Employment and Emiratization (Maximum 20 points):

Total UAE employment: Up to 10 points
Emirati employment: Up to 10 points
Emiratization percentage: 15-50% range for maximum points
Training and development programs: Up to 5 points

Expenditure and Local Sourcing (Maximum 15 points):

Local supplier procurement: Up to 10 points
UAE-based service procurement: Up to 5 points
Local training investments: Up to 3 points
Expenditure multiplier: 1.2-2.0x

Calculation Methodology

Step 1: Data Collection

Gather financial statements for relevant period
Compile employment records and contracts
Document supplier relationships and local procurement
List all UAE-based assets and investments

Step 2: Component Analysis

Calculate each component score separately
Apply multipliers and weighting factors
Identify areas for improvement
Prepare supporting documentation

Step 3: Score Aggregation

Combine component scores with appropriate weights
Apply industry-specific adjustments
Calculate final ICV percentage
Prepare verification report

Industry-Specific ICV Requirements

Oil and Gas Sector

ADNOC Group Requirements:

Minimum 40% ICV for major contracts
Manufacturing emphasis for equipment suppliers
Technology transfer requirements for international firms
Joint venture preferences for high-ICV projects

Industry Opportunities:

Local equipment manufacturing
Maintenance and repair services
Engineering and design capabilities
Technology development and localization

Success Factors:

UAE-based manufacturing facilities
Local partnerships and joint ventures
Technology transfer programs
Emirati talent development

Construction and Infrastructure

Key Components:

Local materials procurement and usage
UAE-based workforce and subcontractors
Local equipment and machinery utilization
Training and capability development

Scoring Emphasis:

Local construction materials: Maximum 15 points
UAE subcontractor engagement: Maximum 10 points
Local equipment rental: Maximum 8 points
Skills development programs: Maximum 7 points

Industry Challenges:

Material import dependency
International contractor competition
Skill gaps in specialized areas
Technology transfer requirements

Professional Services and Consulting

Service Industry Components:

UAE-based office operations: Maximum 15 points
Local professional employment: Maximum 12 points
Local service development: Maximum 8 points
Knowledge transfer programs: Maximum 5 points

Professional Services Focus:

Local talent development and training
Knowledge base establishment in UAE
Regional service delivery from UAE
Technology capability development

ICV Certification Process Timeline

Phase 1: Initial Assessment (2-4 weeks)

Self-Assessment:

Preliminary ICV score calculation
Gap analysis and improvement opportunities
Documentation requirements identification
Resource allocation planning

Professional Consultation:

Expert ICV assessment
Strategy development for score improvement
Certification roadmap planning
Cost-benefit analysis

Phase 2: Documentation Preparation (4-8 weeks)

Financial Documentation:

Audited financial statements
Asset registers and valuations
Investment documentation
Supplier payment records

Employment Records:

Employee nationality breakdown
Emirati employment contracts
Training program documentation
Skills development records

Operational Documentation:

Manufacturing process documentation
Local supplier contracts
Value-add activity records
Quality certifications

Phase 3: Application and Verification (4-6 weeks)

Online Portal Registration:

ICV portal account creation
Company profile completion
Document upload and submission
Application fee payment

Verification Process:

Document review by certified auditors
Site visits and inspections
Score calculation verification
Certification approval

ICV Score Optimization Strategies

Strategic Investment Planning

Asset Acquisition Strategy:

Prioritize UAE-based equipment purchases
Consider leasing vs. buying decisions
Plan capital expenditure timing
Document investment impact

Manufacturing Enhancement:

Implement local assembly operations
Develop UAE-based production capabilities
Create value-add processes
Document manufacturing improvements

Human Resource Development

Emiratization Programs:

Structured Emirati recruitment initiatives
Training and development programs
Career path planning
Retention strategy implementation

Skills Enhancement:

Technical skill development programs
International certification support
Leadership development initiatives
Knowledge transfer programs

Supply Chain Localization

Local Supplier Development:

Identify local supplier opportunities
Develop local supplier relationships
Support local supplier capabilities
Create mutually beneficial partnerships

Local Sourcing Strategy:

Replace imported materials with local alternatives
Develop local manufacturing capabilities
Create local service networks
Optimize local procurement processes

ICV Compliance and Monitoring

Ongoing Compliance Requirements

Annual Recertification:

Annual ICV score reassessment
Updated documentation submission
Score improvement verification
Compliance maintenance

Monitoring Systems:

ICV score tracking mechanisms
Performance measurement systems
Continuous improvement processes
Compliance reporting procedures

Audit and Verification

Internal Audit Requirements:

Regular internal ICV audits
Compliance verification procedures
Documentation accuracy validation
Score calculation verification

External Verification:

Independent auditor verification
Site visit compliance
Score validation procedures
Certification renewal processes

Future ICV Developments

Enhanced Requirements

Expanded Scope:

Additional sectors requiring ICV certification
Increased minimum score requirements
Enhanced verification procedures
Stricter documentation requirements

Technology Integration:

Digital ICV certification processes
Automated score calculation systems
Real-time compliance monitoring
Blockchain verification capabilities

Strategic Evolution

Economic Diversification:

Focus on high-value manufacturing
Technology and innovation emphasis
Knowledge-based economy development
Sustainable development integration

Global Integration:

International best practice alignment
Global ICV standard development
Cross-border recognition systems
International cooperation enhancement

Conclusion: Strategic ICV Excellence

ICV certification represents more than compliance—it's a strategic opportunity to enhance business value while contributing to UAE economic development. Successful ICV implementation requires comprehensive understanding of scoring mechanisms, strategic planning for improvement, and ongoing compliance management.

Key Success Factors:

Strategic investment planning and execution
Comprehensive human resource development
Effective supply chain localization
Robust documentation and compliance systems
Continuous improvement and optimization

Strategic Considerations:

Long-term business value enhancement
Competitive advantage development
Market opportunity maximization
Stakeholder relationship management
Sustainable growth strategy implementation

Operational Excellence:

Robust compliance and monitoring systems
Strategic planning and execution capabilities
Effective resource allocation and management
Comprehensive documentation and verification procedures
Continuous improvement and innovation

Achieve ICV Excellence Today

Our team of ICV certification specialists provides comprehensive services including assessment, strategy development, documentation preparation, certification support, and ongoing compliance management. We ensure your ICV certification maximizes business value while exceeding ADNOC and government requirements.

📞 ICV Certification Hotline: +971 42 500 251 📧 Email: icv@auditfirmsdubai.ae 🌐 Website: https://auditfirmsdubai.ae 💬 ICV Strategy Consultation: +971 50 123 4567 🔗 External Audit Services: https://auditfirmsdubai.ae/en/services/external-audit