In the vast realm of global business, the United Arab Emirates (UAE) stands as a significant player, owing to its cutting-edge infrastructure and strategic governmental initiatives that foster a business-friendly atmosphere. An instrumental stride in this trajectory is the initiation of the In-Country Value (ICV) certification program, a pivotal move aimed at catalyzing GDP growth and fortifying the foundations of local industries. This article comprehensively explores the reasons behind mandatory ICV certification for businesses in the UAE, delves into the program’s overarching goals, and examines its profound impact on the nation’s economy.
ICV Certification: A Strategic Imperative
1. Fostering Local Industries
At the heart of the ICV certification lies the imperative to diminish dependence on imports and fortify local industries. The program extends a spectrum of advantages, with access to government contracts being a prominent boon for businesses. It not only paves the way for the expansion of startups and medium-sized enterprises but also plays a pivotal role in the creation of jobs tailored to individual skills and talents.
2. Championing Local Industries
The fundamental motive of the ICV program is the promotion of local industries, the introduction of domestically produced goods, and the generation of employment opportunities. Acquiring an ICV certificate in the UAE becomes a strategic advantage, instilling confidence in businesses to secure tenders from governmental bodies. Furthermore, it encourages collaborative efforts with foreign enterprises, fostering a competitive environment and providing contractual advantages with federal regimes and partner corporations.
Objectives of the ICV Certification Program
1. Facilitating Emiratization and Economic Expansion
The launch of the standardized ICV program in the UAE was underpinned by three primary objectives: augmenting employment opportunities for Emiratis, broadening GDP growth, and ensuring the strategic localization of product line connections. The provision of a unified ICV program streamlines the certification process, enabling both primary and supplementary vendors to seamlessly participate in acquisition procedures with partnering businesses.
Impact on the UAE Economy
In the broader spectrum, the impact of ICV programs on the UAE economy is vividly evident. Amidst the economic challenges posed by the COVID-19 pandemic, the ICV program played a pivotal role in restoring financial stability in the UAE. Contributing an additional 44 billion Dirhams to the economy and creating over 1500 jobs in the private sector, the ICV program stands as a testament to its resounding success.
Essentiality for Suppliers
Contributing to Strategic Goals
Suppliers participating in the ICV program play a pivotal role in realizing the UAE’s strategic aims of fortifying local industries and reducing dependence on imports. The program offers future-oriented financing incentives and provides suppliers with opportunities to meet the increased demand for local products and services, especially through government contracts. It also aids individual entrepreneurs and SMEs in expanding their businesses as value chains become localized.
Gaining a Competitive Edge with ICV Certification
Strategic Advantages
Acquiring an ICV certificate in the UAE is not merely advantageous; in many cases, it is essential. The certification endows businesses with the first refusal right during the bid phase, enabling active participation in contracts and purchase orders. Without the ICV certificate, businesses may encounter significant handicaps in tender assessments, adversely impacting their competitive standing.
Who Needs the ICV Certificate and How It Enhances Competitiveness?
Businesses, whether based within or outside the UAE, are eligible to apply for an ICV certificate following the established ICV guidelines. In adherence to these guidelines, Tier 1 suppliers, directly furnishing goods or services, must disclose their ICV score. This declaration holds substantial weight during the evaluation and awarding process of tenders. Additionally, suppliers falling under Tier 2 and subsequent categories are mandated to present their ICV certificate, a requisite that significantly amplifies their competitiveness when vying for tenders alongside Tier 1 suppliers. For companies seeking seamless certification, services provided by ICV certification experts in Dubai prove invaluable in the acquisition of the certificate.
How to obtain an ICV certificate in the UAE?
The ICV certificate can exclusively be acquired in the UAE from an ICV certified audit company or auditor. The ICV audit company or auditor can only provide the ICV certification based on the audit report produced by an authorized independent auditor or auditing company from the UAE government.
Conclusively, as the UAE continuously refines its ICV program, the active participation of businesses remains integral. Streamlining the certification process is on the horizon, ensuring that businesses contribute effectively to the program’s overarching objectives. With an increasing number of entities joining the ICV program, the UAE is on a trajectory toward nurturing local industries and competing on a global scale. In this dynamic journey, businesses can seek assistance from trusted certification services to navigate the ICV certification landscape efficiently
Choose the Best Auditors
If you want to obtain an In-Country Value certificate in UAE, you can easily do so with the help of our expert and verified auditors. Consult our auditors today!
