The national In-Country Value (ICV) program offers suppliers an exceptional opportunity to triumph over government and semi-government tenders. The ICV certification delivers companies with a certain ratio during tender appraisals. The UAE’s Ministry of Industry and Advanced Technology (MoIAT) launched ICV certification at the national level in the second half of 2021.
An ICV Certificate, abbreviated as In-Country Value Certificate. It is a document that verifies the level of resident content or value-added in goods and services which is provided by a business within a country. It is an essential tool used by governments to encourage local economic development. It also ensures that businesses support the development of the countries.
What is the core purpose of ICV Certification in the UAE?
The core purpose of ICV Certification in the UAE goes beyond simply increasing spending within the country. It serves as a multifaceted tool for propelling the UAE’s economic engine in several ways:
1. Promoting Local Businesses
Companies with a high ICV rating establish a superior assurance of the economic welfare of the UAE. This assurance is measured through aspects such as;
- Sourcing local materials
- Employing Emirati citizens
- Reinvesting profits within the country
It translates to superior treatment in government procurement processes. It gives them a substantial lead. The UAE promotes a strong Local business base and creates a more self-sufficient economy.
2. Motivating National Production
ICV certification is a reward for past contributions. It also dynamically incentivizes forthcoming investment in the UAE. Businesses looking for an advanced ICV rating are recommended to;
- Establish Local Production Conveniences
- Source Resources from National Suppliers
- Develop Their Emirati Staff
This effect reinforces local industries. It also creates vacancies for jobs and adopts a more self-reliant economy. The noteworthy point is that it also lessens the UAE’s susceptibility to international supply chain interruptions.
3. Fostering Knowledge Transfer and Modernization
A robust importance is placed on appointing and training Emirati residents. This creates a vacant space for employment opportunities for UAE citizens and enables knowledge transfer from foreign corporations. It also generates a more expert local labor pool, which can drive modernization and technical development in the UAE.
4. Expanding the Economy
The ICV certification program detects over-dependence on the oil and gas sector. It boosts businesses to back to an extensive array of industries. This capitalizes companies to finance in sectors such as;
- Renewable energy
- Tourism
- Technology
The UAE has become more robust to exterior instabilities in international oil prices by fostering a more expanded economic base.
5. Promoting Sustainable Practices
The UAE has set determined goals. It changes to a more justifiable economy. ICV certification programs can be personalized to help companies implement globally friendly practices during their procedures. It may involve;
- Finding sustainable materials
- Reducing waste
- Applying energy-competent technologies
6. Enhancing Corporate Social Responsibility
ICV certification program can be extended. It includes an extensive range of Corporate Social Responsibility initiatives. Businesses are encouraged to;
- Support local communities
- Capitalize on social programs
- Support ethical labor practices
ICV certification program emphasis on social responsibility reinforces the UAE as an advanced business pivot.
7. Data Transparency and Accountability
A strong ICV certification needs an open and transparent framework for reporting ICV performance. Businesses must be able to access and comprehend the procedure used to compute their ICV rating. Consistent audits and data authentication procedures are important because they help to guarantee the program’s integrity and efficiency.
8. Better Brand status
ICV certification shows a company’s assurance to support the UAE’s economic goals. It improves a company’s status image and reputation amongst resident stakeholders such as;
- Customers
- Partners
- Government entities
Customers are progressively haggard to brands. It validates social responsibility and support to the communities they work in. This is the ultimate purpose of ICV Certification in the UAE.
Conclusion
The In-Country Value Certification Program in the UAE generates opportunities for Emirati national businesses and entrepreneurs. It develops its products as well as services in the global market. It is suggested that if you are concerned about getting ICV certification in UAE, you must consult with expert ICV auditors in Dubai such as Farahat & Co. Their team helps to ensure that the process is completed properly and professionally. Farahat & Co. is one of the most top ICV services provider in the UAE. They provide advanced ICV certification services in the UAE. The highly professional team can guide you to select the best path of action when it comes to ICV certification.
