Enjoy our faster App experience

Be proactive, secure your ICV Certificate

Padmanabha Acharya, UAE Audit and Assurance Leader, Deloitte Middle East
Padmanabha Acharya, UAE Audit and Assurance Leader, Deloitte Middle East

As one of the certifying bodies to implement the ICV program in the UAE, Deloitte advises that it will be beneficial for all companies to join the initiative



Published: Thu 27 Jan 2022, 11:50 AM

Businesses looking for long-term growth in the UAE should consider being a part of the In-Country Value (ICV) Program introduced by the Ministry of Industry and Advanced Technologies, says Padmanabha Acharya, UAE Audit and Assurance Leader, Deloitte Middle East.

“This is a strategic initiative of the UAE government and is aimed at strengthening the industrial economy in coming years. Firms of all sizes can benefit from the competitive advantage that this program will bring. I think companies would benefit from being proactive and obtaining their ICV now, rather than only acting when it is required during the tender process ,” says Acharya.

An ICV Certificate may be obtained by any company inside or outside the UAE, in accordance with the ICV guidelines. As part of the National ICV Program, tier 1 suppliers (the ones who directly provide goods or services to the partners of the program) may be required to declare their ICV score as this is an integral part of their tender evaluation and award process. Tier 2 and below suppliers may also be required to provide their ICV certificate to ensure competitiveness in their tenders with Tier 1 suppliers.

Deloitte is among the 21 certifying bodies to implement the ICV program for the Ministry of Industry and Advanced Technology (MoIAT). The program’s strategic partners comprise a cluster of government entities and leading national companies in diverse fields, including the program’s implementers, such as the Abu Dhabi Department of Economic Development (ADDED), Abu Dhabi National Oil Company (ADNOC), and Aldar Properties.

More government sectors and federal firms are becoming a part of this initiative, making the ICV score increasingly a requirement. The core principles of this program are to boost the contribution of local industries to the national GDP of the UAE and improve the productivity and substitutability of the UAE’s industrial sector. As of now, participating entities include the Department of Economic Development, ADNOC, Aldar, Mubadala, Etisalat, EDGE, Etihad Rail, Emirates Nuclear Energy Corporation, Shurooq, TAQA, EGA and ESI.

“The ICV program has a cascading effect wherein certain best practices will become a norm and benefit the economy on the whole. The key objectives of the program include strategic expansion of supply chains and the development of new local industries and services. This will in turn stimulate and attract foreign invest-ments, increase exports and add to the diversification of the economy. All while creating valuable job opportunities in the private sector, enhance spending on R&D and advanced technology and increase the pri-vate sector’s contribution to na-tional GDP. Over the years, this initiative will add more depth to the economy and also allow firms to become more competitive,” adds Acharya.

There are several aspects that are key to securing ICV Certification, including local expenditure on manufacturing, local products and services, investments, and the hiring and development of Emiratis. The goal is to support the national industry and redirect expenditure on procuring goods and services into the national economy.

Typically, companies take about three to six weeks to understand the requirements of the program and furnish financial and other pertinent information based on the ICV template. “I strongly encourage businesses to be proactive rather than reactive and enroll for the ICV program now. Many firms come knocking at the doors of auditors at the time of preparing for a tender process. This should change. Firms should look at their ICV certification and resulting scoring as ways to improve their business, which will ultimately add to their credentials and drive competitiveness in coming year.”


More news from Supplements

Supplements

Know Your Awards

The aim is to promote quality and service excellence among businesses in the region. If you are a recipient or have set sights on such achievements, here’s what to look forward to

Supplements3 weeks ago