ICV Certification Services

In 2018, the Abu Dhabi National Oil Company (ADNOC) introduced a procurement
led In-Country Value (ICV) program to encourage Emiratization,
GDP diversification and strategic considerations.

ICV Certification

In The UAE

Then, earlier in 2020, following the success of the program and in line with the economic goals of the government accelerator program, Ghadan 21, the Abu Dhabi Department of Economic Development (ADDED) joined hands with Adnoc and launched the concept of a unified ICV certification process for suppliers in the UAE.

Since then, Aldar Properties and Abu Dhabi Ports are also been a part of the unified ICV certification process.

What does ICV Certificate Means?

The unified ICV program aims to consolidate the ICV certification process in a single ICV certificate that can be used by a supplier who intends to be part of the procurement process of the Participating Entities, whether as a primary or secondary supplier. This means that ADNOC, Aldar, Economic Department, Abu Dhabi Ports suppliers will have ICV Certificates given by an ADNOC, Aldar, Economic Department, Abu Dhabi Ports empanelled Certifying Body. Suppliers who don’t possess ICV Certification will be allowed to participate in ADNOC, Aldar, Economic Department, Abu Dhabi Ports Group tenders; However, their ICV Score will be considered as “Zero” in the bid evaluation. An ICV certification needs to be obtained for each legal entity, which intends to participate in tender with ADNOC, Aldar, Economic Department, Abu Dhabi Ports or any of its group entities. ICV Certification will be readied based on last audited budget statements, which will not be older than 2 years from the certification year. ICV certification shall be valid for 18 months from the date of the initial issue or once a new set of financial statements are issued (whichever is earlier). The supplier shall be responsible to have the revised ICV certificate within 2 months of the issuance of audited financial statements.

ICV Formula

When will it apply:

  • Emiratization: Creating more employment opportunities for UAE nationals in the private sector
  • GDP diversification: Supporting UAE GDP diversification through sourcing more products and services within the UAE
  • Strategic considerations: Localizing strategically critical links of the value chain for chosen categories.

Key components taken in ICV Certification

  • Goods manufactured
  • Emiratisation
  • Third-party spend
  • Revenue
  • Exports
  • Investment
  • Expatriate contribution

Process for obtaining an ICV Certificate

  • Supplier submits ICV Data to a pre-approved certifier
  • Preapproved certifier validates the ICV Data
  • Based on the information submitted using the ICV Certification Template the Certifier issue the final ICV certificate for the company

How does an ICV Audit works?

  • At first, it will be checked if Audited Financial Statements (FS) are available or not?
  • If its available next step is proceeding with ICV review as per AUP based on Audited FS
  • For a company having books of account but no audited financials, use the parent company financials. If Parent company financials do not exist then consider ICV to be zero
  • Parent Company Exists (one level up only) then, checking if Audited FS of Parent company available
  • If it’s available to Proceed with ICV review based on extracted figures forbidding entity from Parent Company FS.

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