The Unified ICV Program is a great initiative by ADNOC. The Program ties contributing to In-Country Value (ICV) with business incentives, encouraging local suppliers to focus more on getting an ICV certificate. The program aims to stimulate economic growth in the Emirates and help local businesses do business with large enterprises such as ADNOC. The program also gives “participating entities” to localize their business activities and stimulate economic development in the UAE.
Local suppliers have the opportunity to gain an edge whenever they submit bids to ADNOC. ADNOC’s bidding process takes ICV Certification as a determining element in the selection process. This means that bidders who have ICV Certification have an advantage over anyone who doesn’t.
As more and more parties are implementing the ICV program, obtaining an ICV Certificate is becoming quite important. If you’re wondering how can you obtain an ICV Certificate, refer to the detailed certification process below.
Push Digits Chartered Accountants is one of the leading Dubai audit firms providing ICV certification consulting services since the beginning. We have extensive and detailed knowledge of the applicable guidelines using which you can improve your ICV score. The process becomes reasonably easy when our consultants work with your team in the entire certification process.
Obtaining an ICV Certificate
The application process is fairly easy. However, there are a few guidelines that you should be aware of.
- The first thing to note is that ICV Certification can only be handed out by Empaneled ICV certifying bodies in UAE.
- When a supplier applies for the certification, they shall require a separate ICV Certificate for every business license that they possess. Every business license will be recognized as a separate legal entity. If a business has multiple branches operating under one license, then a single, combined certificate will be issued for that company.
- ICV Certification Templates must be completed by the applicant.
- Figures entered in the template must all be taken from a company’s latest IFRS compliant audited financial statements. These financial statements should not be older than 2 years. Newly established companies (less than 10 months old) who do not have audited financial statements can take figures from their Management Accounts instead. Bear in mind that the management accounts should not be older than 9 months. If they are, they will need to be audited by an approved audit firm before they can be used.
- After the Certificate has been received, it will remain valid for 14 months (from the date of issuance of audited financial statements). Companies can apply for certification again before this time period elapses. They may use the same financial statements as well. However, receiving an updated certificate will not negate the validity of the previously obtained certificate.
- Once a company appoints an Empaneled Certifying Body to verify them for certification, the company will not be able to switch to a new certifying body for the duration of their certification (unless they have an adequate reason).
- The submission made by a company shall take all costs and revenues of the company during its financial year.
- All figures in the ICV Template must be in AED. Exceptions can only be made if specified.
- If a company is not able to present consumption details (listed by invoice and vendor), purchases made by the company during that year can be taken into account instead.
- Any assumptions and calculations made in the ICV Template must follow instructions provided in the guideline.
- Every figure presented by the supplier must be backed with relevant documentation so that all provided data can be examined thoroughly. At any time during the verification process, a designated representative of the participating entities can ask for a quality review of every ICV Certificate Template being scrutinized by the Certifying Body. The Certifying body and supplier will have to share any required information with the representative, whenever it is asked for.
- Negligence or tampering in a company’s submission will lead to penalties being awarded to the company in question. These penalties can include a ban preventing them from doing business with ADNOC.
Once you are certified, you can begin submitting bids to participating entities. The exact edge that you receive in the bidding process will be determined by your ICV score.