ICV Certificate: The ADNOC implemented the In-Country Value addition program to help local vendors and suppliers in the UAE. Due to its positive impact on the nation’s economy, several ICV certification agencies have sprung up all over the UAE. ADNOC has appointed KGRN as one of the ICV certification organizations that will aid suppliers and vendors in obtaining a valid ICV certificate. Such an ICV certification acts as an assurance that the ICV score on their certificate is authentic and genuine. Let us now take a brief look at the ICV certificate & its validity and the need for such a system.
What is ICV certificate?
An ICV certification agency’s ICV certificate serves as assurance regarding the supplier’s ICV score. Moreover, a brief look at an ICV certificate sample will help you understand the details needed to obtain such certificate. To calculate such a score, the agency will need full access to the supplier’s financial history, and understand what value they add to the economy.
If the company is new, it may submit management accounts from the nine months before the current one to determine its ICV score. If this is not the case, the ICV certification is based on the company’s audited financial accounts, which cannot be more than two years old. On the other hand, the ICV certificate is valid for fourteen months, beginning with the distribution of the company’s Audited Financial Statements.
Who all require a ICV certificate from ICV Certification bodies in UAE?
Any company or entity that works directly or indirectly with the following departments as suppliers or sub-suppliers must get a valid ICV certificate.
- ADNOC Companies
- Department of Economic Development (Abu Dhabi)
- Aldar Properties
- Abu Dhabi Ports
- Environment Agency (Abu Dhabi)
- Government Departments of Abu Dhabi
- Musanada (Abu Dhabi General Services Company)
Hence, as you can see the suppliers to such establishments must get a valid ICV certificate to take part in group tenders. Such a certificate will not only help businesses, but will also aid the nation in improving its economic infrastructure.
What are the objectives of ICV Certification in the United Arab Emirates?
- Employment Generation-ICV Certification should result in more job prospects in the private sector for UAE citizens.
- GDP diversification – ICV Certification should help the UAE diversify its economy by allowing more products and services to be manufactured within the country. It helps the UAE government meet some of its macroeconomic goals, such as long-term economic growth, a stable balance of payments, and job creation.
- Strategic considerations: ICV Certification should provide strategically important value chain links for selected categories, according to strategic considerations. It achieves a competitive advantage by performing strategically important activities at a lower cost or higher quality than its worldwide competitors.
How does ICV certification work in UAE?
By disclosing their ICV Certificate and assured In-Country Value score for the previous financial year, ADNOC providers must explain how they are assisting in the delivery of In-Country Value. As part of the tender evaluation and award process, business agreements with ADNOC include an ICV evaluation.
Suppliers should submit the required documents with points of interest to the ADNOC approved confirmation organization for ICV affirmation. The supplier must provide documentation that demonstrates the certification’s purpose.
On an annual basis, an ADNOC recognized certifying organization must complete an ICV Certification score for each project, which must then be submitted to ADNOC. Calculating the ICV score entails determining the organization’s economic value added in the UAE for its products or services.
For more Details, Contact KGRN
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For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com
