In Country Value Program (ICV)
In-Country-Value Program (ICV) was introduced in the year 2018 by ADNOC. The program aims to attain the optimum value from UAE’s nation’s oil and gas resources to stimulate the country’s economic growth and diversification.
The Abu Dhabi Department of Economic Development (ADDED), Abu Dhabi National Oil Company, Abu Dhabi Ports Company PJSC, Aldar Properties PJSC, Emirates Nuclear Energy Corporation, and Mubadala Investment Company (Participating entities) have also become a part of this program recently by implementing a unified In-Country Value (ICV) Program, Rev. 3.0.
What are the objectives of ICV?
- Emiratization: Create more job opportunities for Emiratis in the private sector
- GDP Diversification: With the objective to support diversification, more goods and services are sourced within UAE
- Strategic considerations: Localizing certain important areas of the value chain for specific business categories.
Why is ICV Certification required?
- ICV score is a significant element with respect to bid evaluation of the participating companies and it will provide additional weightage for the suppliers and vendors involved in the award process.
- Since ICV certified supplier ‘spend’ that remains within the country or benefit the economy of the country is considered while calculating ICV, companies that are not directly involved with the tenders will also benefit from a program.
Key considerations in ICV Certification
- While calculating ICV, the last audited IFRS financial statements of the entities are considered and these should not be older than 2 years from the certification year.
- In the case of newly formed entities that are less than 10 months old, the management accounts for a period of up to 10 months can be taken, if they do not have audited financial statements.
- The validity of ICV certificates shall be of 14 months from the date of issuance of audited financial statements.
- Predefined methodology is used for ICV scores calculation wherein the economic value added within the country for the goods or services provided by the company is analyzed. Following areas are taken into the consideration for calculation of ICV Score:
- Goods manufactured
- Third-party spend
- Exports outside UAE
- Investments in UAE
- Expatriate contribution
How HLB HAMT will help?
HLB HAMT is a certifying body that has the authority to issue an ICV Certificate with the respective authorities. We help our clients with ICV calculation and update them on the latest information regarding ICV program.