In-Country Value (ICV)
The
United Arab Emirates (UAE) has been proactively implementing strategies to
bolster its local economy and industrial sector. A pivotal initiative in this
endeavor is the National In-Country Value (ICV) Program, which aims to enhance
the nation's economic performance by directing government procurement and
expenditure towards domestic industries and services.
Understanding the National In-Country Value (ICV) Program and Recent Achievements and Growth
Understanding
the National In-Country Value (ICV) Program :
Launched as part of the "Projects of the
50," the ICV Program seeks to amplify the UAE's economic growth by
focusing on several key objectives:
Ø Strategic Localization of Supply
Chains: Encouraging the development of local industries and
services to reduce dependency on imports.
Ø Attracting Foreign Investments:
Creating a conducive environment for foreign investors to participate in the
UAE's diversified economy.
Ø Job Creation in the Private Sector:
Generating valuable employment opportunities for Emiratis within private
enterprises.
Ø Enhancing Research and Development
(R&D): Promoting increased spending on R&D and the
adoption of advanced technologies.
Ø Boosting GDP Growth:
Contributing to the overall growth of the national Gross Domestic Product
(GDP).
The
program evaluates companies based on their contribution to the local economy,
issuing ICV certificates that reflect their ICV score. This score influences
the awarding of government tenders and contracts, providing a competitive edge
to businesses with higher local value addition.
Recent
Achievements and Growth :
Since its inception, the ICV Program has witnessed
significant milestones:
v Increased Local Procurement:
By the end of 2023, local spending on products and services by entities
implementing the program reached AED 67 billion, marking a 26% growth compared
to 2022.
v Expansion of Participating
Entities: The first half of 2024 saw the number of entities
joining the program rise to 31, including local and federal government bodies
and major national companies.
v Surge in Investments:
Investments by ICV-certified companies totaled AED 205 billion in the first
half of 2024, reflecting a 20% increase from the same period in 2023.
v Emiratization
Efforts: The number of Emiratis employed
in ICV-certified companies reached approximately 19,000 by mid-2024, a 40%
increase over the first half of 2023.
Benefits of ICV Certification and How to Obtain ICV Certification
Benefits
of ICV Certification :
Obtaining an ICV certificate offers numerous
advantages to businesses operating in the UAE:
Ø Competitive Advantage:
Certified companies are prioritized during the awarding of government contracts
and tenders.
Ø Market Credibility:
An ICV certificate enhances a company's reputation, signaling its commitment to
contributing to the UAE's economic development.
Ø Access to New Opportunities:
Certification opens doors to collaborations with government entities and large
corporations seeking to engage with locally contributing partners.
How
to Obtain ICV Certification :
Companies interested in acquiring ICV certification
should follow these steps:
v Financial Audit:
Ensure that the company's financial statements are audited and comply with
International Financial Reporting Standards (IFRS).
v Engage an Approved Certifying Body:
Select a certifying body authorized by the Ministry of Industry and Advanced
Technology (MoIAT) to conduct the ICV evaluation.
v Undergo Evaluation:
The certifying body will assess the company's contribution to the local economy
based on various parameters, including local procurement, investment, and
Emiratization efforts.
v Receive the ICV Certificate:
Upon successful evaluation, the company will be issued an ICV certificate valid
for 14 months from the date of the audited financial statements.
Conclusion
The UAE's National In-Country Value Program stands
as a testament to the nation's commitment to fostering a robust and
self-reliant economy. By incentivizing local production, investment, and
employment, the program not only strengthens the industrial sector but also
paves the way for sustainable economic growth. Businesses operating in the UAE
are encouraged to obtain ICV certification to align with national objectives
and capitalize on the myriad opportunities it presents.
Related Posts
