ICV Certification in the UAE
The UAE is known for making active efforts to continually improve the region’s business environment. The ICV (In Country Value) Certificate is one of the many initiatives that encourage economic growth in the country. The ICV program is a collection of conditions that ADNOC registered suppliers have to comply with in order to continue to work with ADNOC. Upon meeting these conditions, suppliers can obtain ICV certification which gives them access to a variety of business opportunities. The biggest impact of the ICV Certificate is its weightage in tender evaluations. Suppliers having this certification will have an edge in the selection process.
The ICV program consists of two main parts: ICV Certification and ICV Implementation. Today, we’re going take a detailed look at the ICV Certificate, its benefits, and how can you obtain an ICV Certificate ADNOC compliant.
ICV Certificate Meaning
What is ICV Certificate? This certificate is awarded to ADNOC suppliers after they pass a set evaluation. It is part of the Unified ICV Program that was introduced to stimulate the local supplier market. The evaluation is carried out by empaneled Adnoc ICV certification agencies. These bodies verify a supplier’s financial records to determine whether they are complying with the set conditions or not.
The ADNOC ICV Certificate was initiated in order to boost ADNOC’s participation in the development of local suppliers. The certificate gauges how suppliers have made contributions to improving In-Country Value. Their contribution is calculated in the form of an ICV score. The main focus of ICV Certificate ADNOC is to encourage suppliers to:
- Focus on enhancing their in-country value creation through their business practices
- Invest in business development and skill enhancement
This certification acts as an incentive for suppliers who make an active effort to invest in development and sustainability. The end goal of the ICV Program is to boost human capital development, technology adoption, and GDP growth.
Once the certificate has been issued to a supplier, it remains valid for 18 months. During the valid period, whenever suppliers participate in ADNOC’s group tenders, their bid evaluation will include their ICV score. Suppliers who aren’t Certified can participate as well. However, their ICV score will be counted as zero, leaving them at a disadvantage.
Entities other than ADNOC have also implemented this. However, each entity has its own policies of implementation.
ICV Certificate Sample
The ICV Certificate is, as its name suggests, a certification. It is a form of acknowledgment that states that an entity submitted its records to an empaneled ICV certifying body. And the body checked their records and verified that the entity has met In-Country Value requirements in their previous financial year.
Have a look at the below ICV certificate sample:
The certification contains information about the company to which it was granted. Also, it has a section called “In-Country Value Details” in which the recipient’s total ICV score is broken down.
The ICV score is calculated with the following formulae:
How to Get ICV Certificate in UAE?
Ever since the ICV program has been announced, a lot of business owners have been googling “how can I get ICV certificate in UAE?”. Fortunately, the certification process for the ICV program is relatively simple.
- Companies need to produce IFRS based financial statements of their business activities. These statements must be audited by an auditor who has been licensed from the Ministry of Economy. The financial statements shouldn’t be older than 2 years from the date of the certification request.
Companies that are less than 10 months old and haven’t undergone a financial audit yet can use their management accounts as an alternative. Bear in mind that if the management accounts documents are older than 9 months, the company will have to undergo an audit.
- After your documents are in order, you can fill the ICV Submission Template according to the guidelines provided by ADNOC over here.
- Once you have correctly filled the submission form, you can appoint any ICV certification companies in UAE for the verification process. The certifying company must be appointed from the Adnoc ICV certification agencies list.
- The certified body will analyze your records and calculate your score based on the given criteria. You will then receive your certificate with your total score written on it.
Frequently Asked Questions (FAQs)
What is the In-Country (ICV) Program?
The ICV program was launched by ADNOC in 2018. Its goal is to involve more local suppliers in the selection process while also accelerating the development of UAE nationals. Also, the program aims to localize the core functioning of UAE’s gas and oil industry.
Who is the Program Beneficial for?
The program aims to develop and strengthen commercial and social benefits that will lead to sustainable economic development in the long run. It will help in GDP growth, create new job opportunities, and help local businesses tap into more business opportunities. The ICV program will benefit all stakeholders in the long run.
How to Get Certified for ICV?
The certification process is quite simple, you must submit IFRS based financial documents of your company that have been audited by a licensed auditor. These documents shouldn’t be any older than 2 years. Companies that are less than 10 months old may submit their management accounts of the last 9 months instead. After arranging the necessary documents, you can fill in the submission form and submit (along with your documents) to any empaneled certified body. They will verify your records and certify you. You can find all the resources for ICV Certification here.
Who is Authorized to Certify?
Only empaneled certifying bodies can issue ICV Certificates. You can find information about all certified bodies here.
How Frequently Will You Have to Renew Your Certificate?
Once issued, it remains valid for 14 months. The duration is counted from the issuance date of the financial statements or when a new set of audited financial statements is given.
Are the ICV Certification and ICV Implementation programs similar?
The certification program is aligned between every participating entity. It shall be recognized by all the entities that are participating.
The implementation program will be unique for every entity. It shall cover the way in which every entity will use their certificate in their business activities.
Will the Tendering Process be Different for Every Participating Entity?
While the certificate is unified, the way it will be used by every entity shall vary. Therefore, the tendering process shall vary.
How Many Certificates Can Every Supplier Receive?
Each supplier may only issue one certificate per business license. This certificate can be used with all participating entities in accordance with their implementation policies.
Who Can Provide More Details?
You can email ADNOC in order to get more information. There are also plenty of useful resources available on their website.
ADNOC Email: [email protected]
You can find all the documents and guidelines related to the ICV program down below:
- Supplier Submission Template (Valid till 6th June 2020)
- ICV Revision 3.0 Certification Template and Guidelines (Effective from 7th June 2020)
- Resources on Certification Process (Revision 3.0)