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Category: ICV Certification

  • How to Get ICV Certification in Qatar 

    How to Get ICV Certification in Qatar 

    To obtain an ICV certificate in Qatar, businesses must adhere to the requirements of the In-Country Value (ICV) program, which aims to promote local development and economic diversification. The ICV certification process evaluates a company’s contribution to the national economy through local procurement, employment, and investments. 

    This guide will walk you through the steps and criteria for getting an ICV certificate in Qatar, ensuring compliance with the country’s ICV policies.

    What is In-Country Value (ICV)?  

    In-Country Value (ICV) is a national program to boost local economic growth by prioritising and promoting local goods, services, and industries. In Qatar, the ICV program is driven by the government’s efforts to increase the involvement of local suppliers and service providers in large-scale projects. It encourages companies to utilise more local resources, generate more jobs for Qatari nationals, and invest in the country’s infrastructure and human capital. 

    The ICV Qatar program assesses companies based on their contribution to the local economy through factors like local procurement, employment of Qataris, and capital investments within Qatar.  

    This program is crucial in awarding contracts to businesses that score higher on ICV, pushing organisations to adopt more sustainable practices and support Qatar’s national development strategy. 

    What is ICV Certification in Qatar? 

    ICV (In-Country Value) certification Qatar promotes local economic development by encouraging businesses to prioritise Qatari suppliers, workforce, and resources. The ICV program aims to increase the contribution of local goods, services, and employment to the national economy. 

    Here are the key aspects of ICV certification in Qatar: 

    • Boosting Local Content: It ensures companies operating in Qatar use local suppliers, services, and labour, which enhances the development of local industries. 
    • Business Opportunities: Companies with higher ICV scores may have a competitive advantage when bidding for government contracts or projects with state-owned enterprises. 
    • Key Metrics: The ICV score evaluates a company’s local procurement, employment of Qatari nationals, investments in the local economy, and corporate social responsibility initiatives. 
    • Encouragement for SMEs: It encourages multinational and large enterprises to collaborate with local small and medium-sized enterprises (SMEs). 

    ICV certification aligns with Qatar’s Vision 2030, promoting a sustainable, diversified economy by reducing import dependence and developing local industries. 

    Essential Stages of the Procurement Process with ICV Certificate in Qatar 

    In Qatar, the procurement process significantly emphasises the In-Country Value (ICV) certificate. It influences supplier selection, contract execution, and compliance with national economic goals. 

    Supplier Onboarding

    Suppliers in Qatar must provide their ICV certificates during registration and are required to recertify and update their ICV annually. 

    Tendering 

    The ICV Certificate in Qatar is a key factor in selecting winning bidders. Suppliers are assessed based on their ICV scores throughout the tendering phase. 

    Contract Review

    Two essential reviews are conducted during contract execution:   

    (i) The mid-contract review ensures compliance and progress.   

    (ii) At contract completion, the final review mandates that a pre-approved certifier sign the contract.  

    The entire bidding and evaluation process revolves around technical, financial, and ICV evaluation criteria, making adherence to ICV requirements crucial in Qatar’s procurement process. 

    Read Also: Top Audit Firms in Qatar

    How to get ICV certificate in Qatar?

    To obtain an ICV certificate in Qatar, follow these steps: 

    Step 1: Understand ICV Requirements 

    The ICV (In-Country Value) certificate is required by companies aiming to participate in tenders for specific sectors in Qatar, mainly to promote local content and economic development. 

    Step 2: Gather Required Documents

    Before applying for the ICV Certificate Qatar, be sure that you have the necessary documents, including company financial records, tax information, employment data, and local procurement details.

    Step 3: Register on the ICV Portal

    Companies must register through the relevant Qatar ICV portal, managed by the Ministry of Commerce and Industry or any authorised body overseeing ICV programs.

    Step 4: Submit Application

    Complete the application by filling out the required forms, providing accurate company data related to local economic contributions, and submitting the gathered documents.

    Step 5: Audit and Evaluation

    The application will be reviewed, and an audit may be conducted to assess your company’s contribution to the local economy regarding employment, local purchases, and services.

    Step 6: Receive the ICV Certificate

    Once evaluated, successful applicants will receive the ICV certificate Qatar. It can be used to participate in tenders and projects prioritising local content.

    Read Also: ICV Certification in UAE

    ICV certificate Qatar cost 

    The cost of an In-Country Value (ICV) certificate in Qatar can vary depending on several factors, such as the issuing authority and any additional services you might need. Generally, the fees range from QAR 5,000* to QAR 10,000*. It’s best to check with the specific issuing body or service provider for the most accurate and updated pricing. 

    How Can Shuraa Tax Help? 

    We hope this blog on obtaining an ICV certificate in Qatar has been helpful. For any tax-related inquiries, feel free to connect with our expert Shuraa Tax team. We specialise in a range of services, including: 

    • Accounting and Bookkeeping
    • VAT Consultancy
    • UAE Corporate Tax
    • Excise Tax Services
    • ESR Services

    Contact us today at +971 50 891 2062 or email us at info@shuraatax.com. We’re here to assist you! 

    FAQs 

    Q1. What are ICV certification services in Qatar? 

    ICV certification services in Qatar verify the In-Country Value generated by businesses operating there. 

    Q2. Who are the ICV certificate providers in Qatar? 

    Several accredited ICV certificate providers in Qatar offer certification services to businesses seeking to verify their In-Country Value. 

    Q3. What is ICV certificate Qatar validity?  

    The ICV certificate in Qatar is typically valid for one year from the issue date. 

  • What is ICV Certification in UAE and How to get it?

    What is ICV Certification in UAE and How to get it?

    In today’s competitive business landscape, it is essential for companies to differentiate themselves and showcase their commitment to the local economy. One way to do this is by obtaining ICV (In-Country Value) certification in Dubai.

    ICV certificate in Dubai, UAE is a measure of the value that a company brings to the local economy through its operations and investments. By obtaining ICV certification, businesses can demonstrate their contribution to the development of the UAE and showcase their commitment to supporting local industries and businesses.

    The benefits of obtaining ICV certification are numerous. Not only does it provide a competitive edge in the market, but it also helps businesses build stronger relationships with local partners and stakeholders.

    So, let’s understand more about what ICV certification is, its purpose, and how businesses can obtain it.

    What is ICV Certification in the UAE?

    ICV (In-Country Value) Certification in the UAE is a program implemented by the Ministry of Industry and Advanced Technology (MoIAT) to assess a company’s contribution to the UAE economy. It essentially measures how much of a company’s operations benefit the UAE.

    In-Country Value (ICV) refers to the value a company creates within the UAE. This includes factors like:

    • Local spending on manufacturing and services
    • Use of locally produced goods
    • Investments within the UAE
    • Hiring and training Emirati employees

    Goals of the National ICV Program in the UAE

    The National ICV Program has several goals:

    1. Boost economic growth and diversification

    By encouraging companies to invest and operate locally, the program aims to stimulate the UAE’s economy and reduce reliance on specific sectors.

    2. Promote technology transfer and knowledge sharing

    The program incentivizes companies to bring their expertise and technologies to the UAE, which can benefit local businesses and the workforce.

    3. Create job opportunities for UAE nationals

    By prioritizing the hiring and training of Emirati citizens, the program aims to increase employment opportunities for UAE nationals.

    4. Support the development of local industries

    The program encourages companies to source goods and services from local suppliers, strengthening domestic industries.

    5. Attract foreign direct investment that contributes to in-country value

    The program seeks to attract foreign investment that benefits the UAE economy, not just the investing company.

    Who Needs ICV Certificate in the UAE?

    ICV Certification in the UAE isn’t mandatory for all businesses, but it’s highly recommended for specific sectors and situations.

    Mandatory:

    • All suppliers and contractors directly working with the Abu Dhabi National Oil Company (ADNOC) and its subsidiaries.

    Highly Recommended:

    • Businesses aiming to participate in government tenders and contracts, especially in sectors like oil & gas, construction, transportation, and healthcare.
    • Companies looking to establish a reputation for supporting the local economy and creating jobs in the UAE.

    What is an ICV Scores

    It’s a metric used to assess a company’s contribution to the UAE’s economy. The higher the score, the greater the perceived benefit the company brings to the country.

    Tiers and ICV Scores

    Tier 1 Suppliers: These are companies directly providing goods or services to government entities or program partners. Tier 1 suppliers typically need to declare their ICV score as a key part of the tender evaluation process.

    Tier 2 and Below: While not always mandatory, obtaining an ICV certificate in Dubai can be beneficial for these suppliers (companies supplying to Tier 1) to improve their competitiveness in tenders.

    During government tenders, companies submit bids. The ICV score becomes a factor considered alongside other bid criteria like price and technical expertise. A higher ICV score indicates a greater contribution to the UAE’s economy, making the bid more attractive and potentially increasing the chances of winning the tender.

    Factors That Contribute to ICV Score

    The ICV score in the UAE is a combination of several factors that reflect a company’s contribution to the local economy. Here are some of the key contributors:

    1. Manufactured Goods (for companies with an industrial license)

    The cost of goods manufactured within the UAE is a major factor. Local production creates jobs and boosts industrial development.

    2. Third-party spending (for companies without an industrial license)

    This refers to the company’s spending on goods and services procured from local suppliers. Prioritizing local vendors strengthens the domestic supply chain.

    3. Emiratization

    Hiring and training Emirati nationals is a significant contributor. The program aims to empower the local workforce and reduce dependence on expatriate labor.

    4. Expatriate Contributions

    While Emiratization is a focus, the overall size of the expatriate workforce is also considered.

    5. Investments in the UAE

    The net book value of a company’s assets in the UAE, like property, plant, and equipment, is a factor. This reflects the company’s long-term commitment to the country.

    6. Revenue from Outside the UAE 

    Earning revenue through exports demonstrates the company’s contribution to the UAE’s overall economic activity.

    How to Get an ICV Certificate in UAE? Step-by-Step Process

    Here’s a step-by-step process for obtaining an ICV Certificate in Dubai, UAE:

    1. Check Eligibility

    Verify if ICV Certification is mandatory for your sector or if you’re aiming for tenders that emphasize ICV scores. It’s generally recommended for businesses in government contracting, oil & gas, construction, transportation, and healthcare.

    2. Prepare Required Documents 

    Gather essential documents as per MoIAT guidelines, which may include:

    • Audited financial statements compliant with International Financial Reporting Standards (IFRS) – not older than 2 years.
    • Management accounts for new companies (less than 10 months old) – not older than 9 months.
    • Proof of local spending on goods and services procured from UAE suppliers.
    • Employee details highlighting the number of Emirati personnel.
    • Details on any investments within the UAE (property, plant, equipment).

    3. Select an ICV Certifying Body

    Choose an accredited ICV certifying body approved by MoIAT. They will handle the evaluation and certificate issuance.

    4. Complete the ICV Template

    Download the ICV Template from the MoIAT website and fill it out based on your company’s data and the provided guidelines. Ensure figures align with your financial statements.

    5. Submit for Evaluation

    Submit the completed ICV template and all supporting documents to the chosen certifying body. They will assess your company’s ICV score based on MoIAT criteria.

    6. Issuing the ICV Certificate

    Upon successful evaluation, the certifying body will issue your official ICV Certificate in Dubai. This typically takes a few weeks.

    Related Insights: How to Get ICV Certification in Qatar

    Benefits of Obtaining ICV Certification in the UAE

    Obtaining ICV Certification in the UAE offers several advantages for businesses, especially those looking to expand their operations or participate in government projects.

    1. Strong Advantage in Government Tenders

    Especially in sectors like oil & gas, construction, transportation, and healthcare, government tenders often prioritize companies with high ICV scores.

    2. Signals Commitment to UAE’s Development

    An ICV certificate showcases your company’s positive contribution to the UAE’s economic growth and diversification goals. This can attract potential business partners, investors, and clients.

    3. Long-Term Partnerships

    Building a strong ICV profile can lead to long-term partnerships and collaborations with government entities, major corporations, and other stakeholders in the UAE. 

    4. Improved Supply Chain Efficiency

    The focus on local sourcing encouraged by ICV can help companies optimize their supply chains and potentially reduce costs. 

    5. Potential Financial Incentives 

    The UAE government is also planning to introduce potential financial incentives like tax breaks or grants for companies with high ICV scores. An ICV certification positions you to benefit from such future programs.

    Get Expert Help with ICV Certification Today

    Now you know ICV certification is a crucial requirement for businesses in the UAE looking to participate in government contracts. It not only showcases a company’s commitment to supporting the local economy but also opens up opportunities for government contracts.

    While the application process may involve compiling documents and meeting specific criteria, seeking guidance from a qualified tax advisor can ensure a smooth and efficient experience. Shuraa Tax, a group of knowledgeable and qualified accountants, auditors, and tax advisors in Dubai, UAE, can assist you with understanding the ICV program, gathering the necessary documentation, and completing the application process successfully.

    Contact Shuraa Tax today at +971508912062 or info@shuraatax.com. to learn more about how ICV certification can benefit your business in the UAE.

    Frequently Asked Questions 

    1. How is the ICV Score Calculated for an ICV Certificate?

    Your ICV score is a combination of several factors that reflect your company’s contribution to the UAE economy. This generally includes: 

    • Economic Contribution
    • Workforce and Talent Development
    • Investment (property, plant & equipment)
    • Revenue from exports

    2. Is there an eligibility criterion to get ICV certification?

    ICV certification isn’t mandatory for all businesses. However, it’s mandatory for companies working directly with ADNOC (Abu Dhabi National Oil Company) and its subsidiaries must have ICV certification. Businesses aiming to participate in government tenders (especially in oil & gas, construction, transportation, and healthcare) are strongly encouraged to get certified.

    3. Can foreign companies obtain ICV Certification?

    Yes, foreign companies operating in the UAE can obtain ICV certification. The program encourages foreign companies to contribute to the local economy through local hiring, sourcing from UAE suppliers, and investing within the country.

    4. How long does the ICV certification process take?

    The processing time for ICV certification typically takes 7 to 14 working days, assuming you provide all the required information promptly to the certifying body.

    5. How long is an ICV certificate valid?

    The ICV certificate is valid for 14 months from the date your audited financial statements are issued. During this period, companies can apply for recertification with the same financial statements, but the validity remains 14 months from the initial issuance.

    6. What is the cost of obtaining ICV (In-Country Value) Certification in UAE?

    There isn’t a fixed price for obtaining ICV certification in the UAE. The cost typically varies depending on a few key factors such as company size, certifying body, and application complexity.