ICV Certification Services
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PIONEER ICV CERTIFICATION CONSULTANTS
As PIONEER ICV certification Consultants, we have set up a specialized sub-service line for ICV to help our clients for acquiring ICV certificates, ICV improvement plans as per ICV guidelines .
In-Country Value (ICV) certification
NATIONAL ICV CERTIFICATION PROGRAM
In 2021, the ICV program was shifted to the Ministry of Industry and Advanced Technology (MOIAT) with the intention to make this program all-inclusive for Government and Semi-Government departments across the whole UAE.
- (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 iii) Investment Growth
WHY HAS THE ICV CERTIFICATION PROGRAM BEEN IMPLEMENTED IN UAE?
An In-Country Value (ICV) program was announced for Abu Dhabi National Oil Company (ADNOC) Group Companies with the following objectives:
- (a) Emiratization: Creating additional employment opportunities for Emiratis in the private sector
- (b) GDP Diversification: Supporting UAE GDP diversification by sourcing additional goods and services within the UAE; and
- (c) Strategic Considerations: localizing strategically critical parts of the value chain for selected categories.
WHO NEEDS ICV CERTIFICATE?
Companies working directly as suppliers or indirectly as sub-supplier with the following Implementing Agencies are required to acquire the ICV certificate. The Implementing Agencies for the National ICV Program are gradually increasing in numbers to ensure observing ICV Program across the country.
- ADNOC Group Companies
- Abu Dhabi Department of Economic Development
- Aldar Properties
- Abu Dhabi Ports
- Mubadala
- Etisalat
- Emirates Steel
- TAQA Group
- Edge
- Etihad Rail
- Sharjah Investment and Development Authority (Shurooq)
- Emirates Nuclear Energy Corporation
- Emirates Global Aluminium (EGA)
- Companies submitting tenders through Musanada (Abu Dhabi General Services Company)
Basic Information Regarding ICV Certification
Each license of a Company is considered as an independent legal entity even if the ownership is the same. However, if a Company has different branches in the same Emirate with identical activities and ownership listed on the licenses, then one combined ICV certificate is allowed for the Company in that Emirate.
For newly established Companies (less than 10 months old) that do not have audited financial statements, the Management Accounts for a period of up to 9 months can be used for ICV calculations. Any management accounts greater than 9 months will be required to be audited.
For newly established Companies (less than 10 months old) that do not have audited financial statements, the Management Accounts for a period of up to 9 months can be used for ICV calculations. Any management accounts greater than 9 months will be required to be audited.
ICV IMPROVEMENT PLAN
A Milestone towards the achievement of planned ICV score for an amount of 5% of the Agreement value shall be included in the Contract and this payment will be released after completion of each year from the commencement date of the Agreement in proportion to the actual ICV score achieved as per the latest ICV certificate.
Types of the improvement plan
- Company based Improvement Plan
Based on the overall company’s financial statements.
- Agreement based Improvement Plan
Based on cash flows from activities pertaining to relevant contract for which ICV Certificate is required separately. These improvement plans and respective ICV certificates are normally related to particular high-value EPC or construction projects.
- Total ICV Fee = 5% of contract amount
- Annual ICV Fee = Total ICV Fee/Duration of Agreement (Years)
- Annual ICV entitlement = Annual ICV Fee × (Actual ICV Growth/Planned ICV Growth)
- Supplier to submit separate invoice at the end of each Agreement Year to claim Annual ICV entitlement. If the Supplier meets the target in any subsequent year, the unpaid amount in previous years shall be released.
WHAT WE OFFER AS LEADING ICV CONSULTANTS
We offer the following services:
- ICV CERTIFICATION
- ICV CONSULTANCY
- ICV IMPROVEMENT PLAN
- ICV PROGRAM IMPLEMENTATION