Dubai and the wider UAE have become global business hubs, attracting multinational corporations, local businesses, and foreign investors. To encourage economic diversification and promote local content, the UAE government introduced the In-Country Value (ICV) program. Central to this initiative is the ICV certificate, which assesses and validates a company’s contribution to the local economy. Many businesses wonder: Is ICV certification mandatory in the UAE? Understanding the requirements is essential for companies looking to participate in government contracts, tenders, or business partnerships.
What is an ICV Certificate?
An ICV certificate is an official document issued by authorized certification bodies in the UAE. It evaluates a company’s contribution to the national economy by assessing:
- Local manufacturing and production
- Procurement of goods and services from UAE-based suppliers
- Employment of UAE nationals
- Operational expenditures within the UAE
The certificate is usually accompanied by an ICV score, expressed as a percentage, which indicates the level of value a business adds to the UAE economy.
Purpose of the ICV Program
The ICV program was introduced to promote local economic growth and reduce dependency on imports. Its main objectives include:
- Encouraging local procurement: Supporting UAE-based suppliers and manufacturers
- Promoting UAE employment: Increasing opportunities for Emirati nationals in the workforce
- Ensuring sustainable business practices: Encouraging companies to invest in local operations
- Supporting government tenders: Ensuring government contracts contribute to the local economy
- Aligning with UAE Vision 2030: Driving economic diversification and long-term sustainability
The ICV certificate is the formal validation of a company’s compliance with these goals.
Is ICV Certificate Mandatory in UAE?
The ICV certificate is not universally mandatory for all businesses in the UAE. However, it becomes mandatory under specific circumstances, particularly for companies participating in government tenders, contracts, or partnerships with certain multinational corporations.
1. Mandatory for Government Contracts
Many UAE government entities require businesses to hold an ICV certificate before they can participate in tenders or procurement processes. The certificate ensures that government spending contributes to the UAE economy. Mandatory sectors often include:
- Construction and infrastructure
- Energy, oil, and gas
- Supply of goods and services to government bodies
Without an ICV certificate, companies may be disqualified from bidding on certain government projects.
2. Required by Multinational Corporations (MNCs)
Some MNCs operating in the UAE prioritize working with suppliers that hold an ICV certificate. While this is not a government mandate, it effectively makes the certificate a requirement for companies seeking business with these corporations.
3. Encouraged in Strategic Sectors
Certain strategic sectors, such as manufacturing, logistics, construction, and energy, are encouraged to obtain ICV certification. Compliance may not be legally mandatory, but it improves credibility, market competitiveness, and eligibility for business opportunities.
Benefits of Obtaining an ICV Certificate
Even in cases where ICV certification is not strictly mandatory, obtaining the certificate offers several advantages:
- Eligibility for Government Projects: Ensures compliance with tender requirements and increases chances of winning contracts.
- Enhanced Credibility: Demonstrates a company’s commitment to contributing to the UAE economy.
- Competitive Advantage: Improves scoring in procurement processes and partnership opportunities.
- Support for UAE Employment: Encourages hiring and training of UAE nationals, aligning with local content goals.
- Compliance with National Vision: Supports UAE Vision 2030 objectives of economic diversification and sustainability.
By obtaining the ICV certificate, businesses can access a wider range of opportunities while demonstrating their commitment to the local economy.
How to Obtain an ICV Certificate
Businesses seeking ICV certification must follow a structured process:
- Assess Business Contribution: Review local procurement, manufacturing, workforce, and operational expenditures.
- Prepare Required Documentation: Gather financial statements, procurement records, employee data, and operational expenditure reports.
- Submit Application to Authorized Certification Body: Application and documents are submitted for verification.
- ICV Score Calculation: The certification body calculates the company’s contribution to the local economy.
- Issuance of ICV Certificate: Companies receive the official certificate along with their ICV score.
- Periodic Renewal: Certificates are typically valid for a year, after which companies must update their data and renew.
Following this process ensures that businesses meet the ICV requirements and maintain compliance for government and corporate projects.
Who Should Consider ICV Certification
While the ICV certificate is mandatory for certain projects, it is also beneficial for:
- Businesses in strategic sectors (manufacturing, energy, logistics, construction)
- Suppliers to multinational corporations operating in the UAE
- Companies aiming to participate in government tenders
- UAE-based businesses seeking market credibility and competitive advantage
Even for companies not legally required to hold an ICV certificate, obtaining it can open new business opportunities and improve trust with clients and partners.
Conclusion
The ICV certificate in UAE is not universally mandatory for all businesses. However, it becomes a legal or practical requirement for companies participating in government tenders, working with certain MNCs, or operating in strategic sectors. Obtaining the ICV certificate demonstrates a company’s contribution to the UAE economy through local procurement, workforce development, and operational expenditures.
