What is ICV Certificate in UAE? The Ultimate Guide for Businesses in 2025

The United Arab Emirates (UAE) is renowned for its dynamic business environment, forward-thinking policies, and robust drive toward economic diversification. One of the most impactful initiatives shaping the UAE's business landscape today is the National In-Country Value (ICV) Program. Central to this program is the ICV Certificate—a powerful tool for companies seeking to thrive in the UAE's competitive market, especially when bidding for government and major corporate contracts.

As One Desk Solution, a leading provider of tax, VAT, and bookkeeping services in Dubai and across the UAE, we are committed to helping businesses understand and leverage the ICV Certificate for sustainable growth and compliance.

Table of Contents

1. Introduction to the ICV Certificate
2. Background: The National ICV Program
3. What is an ICV Certificate?
4. Why is the ICV Certificate Important?
5. Who Needs an ICV Certificate?
6. How is the ICV Score Calculated?
7. Step-by-Step Process to Obtain an ICV Certificate
8. Benefits of Holding an ICV Certificate
9. Common Challenges and Solutions
10. How One Desk Solution Can Help
11. Frequently Asked Questions (FAQs)

Introduction to the ICV Certificate

The ICV Certificate is rapidly becoming a must-have for businesses operating in the UAE, especially those aiming to secure government contracts or work with leading national companies. It is more than just a compliance document—it is a reflection of your company's commitment to supporting the UAE's economic vision and contributing to the nation's prosperity.

Background: The National In-Country Value (ICV) Program

Launched by the Abu Dhabi National Oil Company (ADNOC) in 2018 and later extended nationwide under the Ministry of Industry and Advanced Technology (MoIAT), the National ICV Program is a strategic initiative designed to:

• Boost local economic growth
• Encourage Emiratization (hiring UAE nationals)
• Strengthen local supply chains
• Attract foreign investment
• Diversify the UAE's economy beyond oil and gas

The program redirects a significant portion of public spending into the national economy, supporting local industries and creating valuable job opportunities.

What is an ICV Certificate?

An ICV Certificate is an official document issued by authorized certifying bodies in the UAE. It quantifies a company's contribution to the local economy based on several factors, including:

• Local procurement and spending
• Investment in the UAE
• Emiratization (hiring UAE nationals)
• Value-added activities within the country

Why is the ICV Certificate Important?

1. Competitive Advantage in Tenders

Companies with a high ICV score have a significant edge when bidding for government projects and contracts with major UAE corporations. The ICV score is a critical component in the tender evaluation process.

2. Enhanced Reputation

Holding an ICV Certificate demonstrates your commitment to the UAE's economic goals, improving your reputation with clients, partners, and authorities.

3. Access to New Opportunities

Many government entities and large corporations now require an ICV Certificate for suppliers and contractors. Without one, your bid may be at a disadvantage or even disqualified.

4. Support for Economic Development

By participating in the ICV Program, your business actively contributes to the UAE's vision of a diversified, knowledge-based economy.

Who Needs an ICV Certificate?

The ICV Certificate is essential for:

• Suppliers and contractors bidding for government contracts
• Companies seeking to work with ADNOC and other major UAE entities
• Businesses in sectors such as construction, oil & gas, manufacturing, IT, healthcare, and more

Note: Even if your company is not currently bidding for such contracts, obtaining an ICV Certificate can enhance your marketability and prepare you for future opportunities.

How is the ICV Score Calculated?

The ICV score is a percentage that reflects your company's contribution to the UAE economy. The calculation considers several key factors:

ICV Score Component	Description
Goods Manufactured/Procured	Value of goods produced or sourced locally
Investment in UAE	Capital invested within the UAE
Emiratization	Employment and training of UAE nationals
Expatriate Contribution	Expatriate payroll and related costs
Revenue from Outside UAE	Earnings generated from exports and overseas contracts
Net Book Value of Assets	Value of fixed assets located in the UAE
Subcontracting	Use of local subcontractors and suppliers

The formula, as per MoIAT guidelines, is:

ICV Score = [(Value of Purchase × ICV of Supplier) + Emirati Cost + 60% of Expat Cost] / Total Cost + 10%(Net Book Value of Assets in UAE)

Tip: Companies based in the UAE mainland automatically receive a 10% ICV score bonus.

Step-by-Step Process to Obtain an ICV Certificate

Obtaining an ICV Certificate involves several stages. Here's a comprehensive guide:

1. Prepare Audited Financial Statements

• Financial statements must be prepared according to International Financial Reporting Standards (IFRS)
• Statements should not be older than two years from the date of certification

2. Complete the ICV Template

• The ICV template is a standardized form capturing details about your local procurement, investments, workforce, and other relevant data

3. Submit to an Authorized Certifying Body

• Only authorized certifying bodies, approved by MoIAT, can issue ICV Certificates
• Submit your completed template and supporting documents for review

4. Undergo Evaluation and Audit

• The certifying body will review your documents, possibly conduct an on-site audit, and verify the information provided

5. Receive Your ICV Certificate

• Upon successful evaluation, you will receive your ICV Certificate, valid for 14 months from the date of your financial statements

6. Annual Renewal

• The certificate must be renewed annually, requiring updated financial statements and a new application

Step	Details
Prepare Audited Financials	As per IFRS, not older than 2 years
Complete ICV Template	Fill with detailed local economic contribution data
Submit to Certifying Body	Choose MoIAT-authorized certifier
Evaluation & Audit	Document review and possible on-site audit
Certificate Issuance	Valid for 14 months from financial statement date
Renewal	Annual process with updated financials

Benefits of Holding an ICV Certificate

1. Preferential Access to Government Contracts

ICV-certified companies enjoy a significant advantage in public procurement tenders, often receiving preference over non-certified competitors.

2. Enhanced Business Credibility

Demonstrates compliance, transparency, and commitment to the UAE's economic vision, boosting your reputation among clients and partners.

3. Tax and Financial Incentives

Some government entities may offer tax credits, grants, or other incentives to ICV-certified companies.

4. Streamlined Operations

ICV-certified companies are often viewed as more trustworthy by government authorities, leading to smoother approvals and renewals for permits and investments.

5. Support for Emiratization

Prioritizing the hiring and training of UAE nationals improves your ICV score and supports national employment goals.

Common Challenges and How to Overcome Them

Challenge	Solution
Complex Documentation Requirements	Work with experienced consultants (like One Desk Solution) to ensure accuracy and completeness
Keeping Financials Up-to-Date	Maintain audited financials as per IFRS and conduct regular reviews
Understanding ICV Calculation Methods	Seek expert guidance to maximize your ICV score
Navigating Renewal and Compliance	Set reminders for annual renewal and stay updated on MoIAT guidelines
Improving Low ICV Scores	Invest in local procurement, Emiratization, and local assets

How One Desk Solution Can Help

As a top provider of tax, VAT, and bookkeeping services in Dubai and the UAE, One Desk Solution is uniquely positioned to support your ICV journey:

• Expert Bookkeeping: Accurate, IFRS-compliant financial statements are the foundation of a strong ICV application.
• Tax & VAT Advisory: Ensure you meet all regulatory requirements and maximize available incentives.
• ICV Consultation: Guidance on improving your ICV score, preparing documentation, and navigating the certification process.
• Ongoing Compliance: Annual support for renewals, audits, and updates as regulations evolve.

Our experience with over 200 clients across multiple industries—including real estate, construction, IT, retail, and more—makes us the trusted partner for your ICV and financial compliance needs.

Frequently Asked Questions (FAQs)

Q1: Is the ICV Certificate mandatory for all businesses in the UAE?

No, but it is essential for companies seeking government contracts, working with ADNOC, or aiming to be competitive in major tenders.

Q2: How long is the ICV Certificate valid?

14 months from the date of the audited financial statements used in the application.

Q3: Can a company with multiple branches use a single ICV Certificate?

If branches are in the same emirate with identical activities and ownership, one combined certificate is allowed; otherwise, each entity needs its own.

Q4: What happens if my ICV score is low?

You can still participate in tenders, but your bid will be at a disadvantage compared to companies with higher ICV scores.

Q5: How can I improve my ICV score?

Increase local procurement, invest in UAE assets, hire and train UAE nationals, and work with local suppliers.

Conclusion

The ICV Certificate is a strategic asset for businesses in the UAE, opening doors to lucrative contracts, enhancing credibility, and supporting the nation's economic vision. With the right guidance and expert support from One Desk Solution, your company can navigate the certification process smoothly and unlock new opportunities in the UAE's thriving market.