How to Get an ICV Certificate in Dubai
Dubai has become a global business hub, attracting a wide range of companies, from small startups to multinational corporations. To encourage local economic growth, employment of UAE nationals, and sustainable business practices, the UAE government introduced the In-Country Value (ICV) program. Central to this program is the ICV certificate, which verifies a company’s contribution to the local economy. Understanding how to get an ICV certificate in Dubai is crucial for businesses aiming to participate in government projects, secure tenders, or enhance their credibility.
What is an ICV Certificate?
ICV certificate is a government certificate, which is granted by the certified bodies to assess the contribution of a business to the UAE economy. The assessment considers:
Local production and manufacturing.
- Purchasing of products and services of suppliers in UAE.
- Employment of UAE nationals
- Direct spending on operations in the UAE.
There is also an ICV score of the certificate in terms of a percentage, which shows the value addition rate that a company makes to the local economy. Higher points are usually a competitive advantage in tendering to the government or bidding a contract.
Why is an ICV Certificate Important in Dubai?
ICV certification is essential for several reasons:
- Eligibility for Government Projects: Many government tenders in Dubai require companies to hold an ICV certificate.
- Enhanced Credibility: Demonstrates commitment to the UAE economy and local development.
- Competitive Advantage: Improves chances of winning tenders and securing partnerships.
- Support for UAE Nationals: Encourages companies to hire and train local talent.
- Compliance with National Goals: Aligns business operations with the UAE Vision 2030 for economic diversification and sustainability.
Obtaining an ICV certificate signals that your business is contributing to local economic growth and adhering to regulatory requirements.
Who Needs an ICV Certificate?
Businesses that typically require an ICV certificate include:
- Companies bidding for government contracts and tenders
- Multinational corporations (MNCs) and their suppliers operating in Dubai
- Businesses in strategic sectors like manufacturing, energy, construction, and logistics
- Companies seeking a competitive edge in procurement and partnership opportunities
- UAE-based businesses investing in local operations and workforce development
Having an ICV certificate enhances a company’s reputation and increases its eligibility for government and corporate projects.
Step-by-Step Guide: How to Get an ICV Certificate in Dubai
Obtaining an ICV certificate involves a systematic process to assess and verify your company’s local economic contribution. Here is a step-by-step guide:
1. Understand the ICV Program Requirements
Along with the guidelines of the ICV program, familiarize yourself with the guidelines before applying. In these government portals and authorized bodies, there are elaborate criteria such as local procurement percentages, workforce requirements, and the standards of operational expenditures. Being aware of these requirements enables you to make the corresponding documentation and plan your business activities.
2. Evaluate the contribution of your company.
Assess your business functions in order to establish the amount of local content you offer. Consider the following:
- Local Procurement: The percentage of goods and services bought by local suppliers in the UAE.
- Local Manufacturing: The scope of production or service in the UAE.
- UAE National Workforce: The UAE nationals in employment by numbers and percentages.
- Operational Expenditures, local infrastructure, local utilities, and local services.
This self evaluation will give you a clue of what your estimated ICV score will be like and what you can do to improve on before application.
3. Prepare Required Documentation
To apply for an ICV certificate, businesses must submit supporting documents that validate their local content and economic contribution. Commonly required documents include:
- Audited financial statements
- Procurement records and invoices
- Employee details, including UAE nationals employed
- Details of local manufacturing or production facilities
- Operational expenditure reports within the UAE
Accurate and complete documentation is critical to ensure a smooth certification process.
4. Submit Application to an Authorized Certification Body
The issuance of ICV certificates is done by the approved certification bodies, which are acceptable in the UAE government. Present your application including the necessary documents to be evaluated. Your submission will be reviewed and the certification body will be checking records and adherence to the requirements of the ICV programs.
5. Calculation of ICV Score
The certification body calculates your ICV score based on:
- Local procurement
- Local manufacturing
- UAE national workforce
- Operational expenditures
The score reflects your overall contribution to the UAE economy. Companies with higher scores are often given preference in government tenders and corporate partnerships.
6. Issuance of ICV Certificate
After your application is assessed, your official ICV certificate including your ICV score is provided by the certification body. The certificate is supposed to last a certain time which is usually one year after which it needs to be renewed.
7. Renewal and Updates
ICV certification can not be done once. Businesses are required to renew their certificate after some time, renew their operational and procurement data and make sure that they remain in line with the provisions of the ICV program. The renewal is important to continue being eligible in regards to tenders and partnerships.
Tips for a Smooth ICV Certification Process
- Maintain Accurate Records: Keep detailed financial, procurement, and HR records to simplify documentation.
- Plan for Local Procurement: Increase purchases from UAE suppliers to boost your ICV score.
- Hire and Train UAE Nationals: Workforce development is the way to enhance compliance and score.
- Consult Experts: Hire consultants or agencies that were specific in ICV certification, and move through the process effectively.
- Stay Updated: Regularly review updates to ICV program rules to ensure compliance.
Conclusion
The acquisition of an ICV certificate in Dubai is also mandatory to companies that want to secure government contracts, corporate relationships or competitive advantages within the UAE market. The certification reflects the contribution made by a company to the local economic growth in terms of procurement, manufacturing, employment, and expenditures on operations.
Adhering to the step-by-step approach, which involves comprehending program requirements, evaluating contributions, drawing up documentation, applying, and renewing on a periodic basis, businesses are likely to gain an ICV certificate.
When properly planned and met, an ICV certificate does not only open the doors to new business prospects, but also contributes to the credibility and serious intentions of a company in supporting the long-term economic prospects of Dubai and the UAE in general.
