The UAE is a commercial hub that attracts investors from all over the world. It is also home to a large variety of both product and service-based industries. Off late, the government has been trying keenly to improve investment opportunities within the UAE. A lot of companies in the UAE have been trying to source their products and components locally to help boost the national economy.
The government too has been investing in such plans, which help boost local industries and simplify supply chains. One such program has been the ICV or In-Country Value addition program. In this article, we will take a look at what an ICV audit means, and why ICV certificates are essential. Additionally, we will also look at how ICV certification occurs and list some of the best National ICV certification agencies.
What is ICV Certification?
ADNOC introduced the In-Country Value program for all its suppliers. This initiative will help boost the authority’s ICV contribution by relying on local suppliers to produce. Furthermore, the localization of several critical operations and functions within the oil and gas industry will help the national economy.
As a result, ADNOC decided that from April 2018, all suppliers would have to report their ICV score. To help calculate and report this score, most companies rely on agencies on the ICV auditors list. Furthermore, such certification must come from a member of the ADNOC ICV approved auditors list.
Requirements of ICV Certification
- All entities that supply either goods or services to the ADNOC must submit their ICV Auditor list approved ICV score. This score must be a part of all incoming tender applications.
- While companies without an ICV certification can still participate, their ICV score will be considered to be zero. This will put them at a disadvantage when competing against companies that have a higher score.
- ADNOC will also ask for the ICV score of their suppliers after reviewing their supply chain.
- The process of ICV certification must occur on an annual basis.
- The ICV certificate proves that the organisation followed preset guidelines while calculating their ICV score.
Why opt for an ICV audit?
Organisations can take the help of a company in the ICV auditors list to ensure they receive certification. An ICV audit will help companies identify gaps within the system, and rectify errors if any are found. Such an audit will review all the processes undertaken by the company and try to identify internal problems and controls for the same.
Undergoing such an ICV audit will help companies prove that they comply with the ICV guidelines. It is also necessary if the organisation wishes to obtain an ICV certification. Such an ICV certificate is essential to prove that the score they submit for tenders is true and accurate.
ICV Scores by Auditors
A number of different suppliers of goods and services are given an ICV score by auditors who have been approved by the ICV. In essence, the ICV score is an evaluation of the amount of economic value that the items produced by the company contribute to the nation during the course of its existence.
A number of established approaches are available to the government in order to assist in the calculation of the ICV score. For the purpose of determining the ICV score, auditors will take into consideration the following variables.
- Goods manufactured and services offered
- The third-party spend
- Revenue
- Exports
- Investment
- Emiratization
- Contribution from expatriates
Why KGRN?
At KGRN, we provide clients with a highly effective, customised, and secure service that meets all of your company’s accounting and auditing requirements. Year after year, we have been regarded as one of Dubai’s best audit firms for our exceptional service, prompt delivery, and competitive pricing. We offer high-quality, customisable, and dependable service to all of our customers, so you never have to worry about your records again. Partner with KGRN and say goodbye to all of your financial troubles.
For enquiries, call +971 45 570 204 / E-mail: [email protected]
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