Are you a supplier or aspiring to be a supplier in UAE? Here is something you must know in order to be able to do business in UAE.
To do business in UAE, to be a supplier in UAE and work with ADNOC or government and semi-government agencies in UAE, your business entity needs ICV certification in UAE. The ICV certificate carries extra value in any bidding calculation process in ADNOC and other government and semi-government entities in UAE. The ICV Certificate helps the business entity to be able to apply the tender flown by ADNOC and other government and semi-government entities in UAE.
In the year 2018, Abu Dhabi National Oil Company (ADNOC) initiated the In-Country Value (ICV) certificate program. The ADNOC ICV Certification initiative was one of the many initiatives to encourage economic growth in UAE. This ADNOC ICV Certification initiative in UAE aimed at GDP growth, human capital development, involvement of more local suppliers, Emiratization in the private sector, and localization of the core functioning of UAE’s gas and oil industry and technology adoption.
In the year 2019 and 2020, Unified ADNOC ICV Certification program has been introduced in which along with ADNOC group, the Department of Economic Development, Abu Dhabi Ports and Aldar properties have also joined together in the ICV certification process, thus broadening its purview to much larger section of business in UAE. It is expected that in coming days, more entities will join this ICV certification process, thus making it mandatory for all the suppliers to get in to ICV certification process.
ADNOC ICV Certification program has an objective of involving more local suppliers in the selection process and also work towards localizing the core functioning of UAE’s oil and gas industry. Through this it aims to focus on development of the citizens of UAE and its overall economy.
The process of ADNOC ICV Certification involves evaluation of an entity’s value-added contribution to the United Arab Emirates in areas including the following:
- Local Manufacturing
- Local investment
- Procurement of third party goods and services
- Expatriate contribution
- Emiratization of labor
- Generation of income from outside the United Arab Emirates
Any company/ supplier who is registered with ADNOC or expecting to work with ADNOC and allied groups, have to comply with set of conditions set in the ADNOC ICV Certification program. This ADNOC ICV Certification gives them access to variety of business opportunities. The ADNOC ICV Certification of any entitycarries weightage in the tender evaluation process and selection process.
The ICV certificate carries extra value in any bidding calculation process in ADNOC and other government and semi-government entities in UAE, mandated by Unified ICV Certification Program.
Entities not having ICV Certification, shall be allowed and considered for bidding in a tender process but during calculation, their ICV score will be “zero”, hence keeping them in a disadvantageous position than the ICV certifies entities.
The ADNOC ICV Certification requires your company/ supplier/ business entity to be scrutinized by a set of evaluation process. Your company has to meet the conditions of ADNOC ICV Certification in order to be able to work with ADNOC and other government agencies in UAE.
In ADNOC tendering process, the ICV score has now become an integral part of it. The tender awarding criteria takes in to account the lowest price and high ICV score. All the government and semi-government institutions/ entities operating in the emirate of Abu Dhabi have made In-Country Value certificate a statutory document from the companies which are interested to work with them and participate in their procurement processes.
Any company who is working or willing to work with the following Government or Semi-government Departments in UAE i.e. ADNOC Group Companies, Aldar Properties, Abu Dhabi Ports, Abu Dhabi Department of Economic Development, All other Departments of Government in Abu Dhabi, Abu Dhabi General Services Company etc. either as suppliers or indirectly as sub-suppliers, needs to furnish ICV certificate.
All the ADNOC suppliers need to contact an ADNOC certification body for ICV certificate. They must submit the supplier’s submission template that would include the ICV certificate as well. A tender bid would require any supplier company to submit Commercial Bid and also the ICV Improvement Plan. An ICV Improvement Plan carries higher value in tender bid calculation process. An ICV Improvement Plan is the commitment made by the bidder to achieve certain ICV goals, against which the payment is released to the entity.
In the UAE, an ICV approved auditor/ audit firm is authorized to perform audit, produce audit reports and issue the ICV certificate.
ICV certificate requires audit report of the last financial year but the report should not be older than 2 years. For any entity who is 10 months old must produce Audit report to get ICV Certificate. Entities which are less than 10 month old and who do not have audited financial statements, can also apply for ICV Certificate on the basis of Management Accounts for a period up to 9 months. The Management Accounts above the period of 9 months need to be audited before applying for ICV Certificate.
Once issued, ICV Certificate is valid for 14 months from the date of issue or from the date of new financial statements.
In summary the major benefits of ADNOC ICV Certificate are:
- Opens doors for your company to explore business opportunities in UAE.
- Allows you to participate in the bidding process of tender flown by ADNOC group and other Government and Semi-Government departments in UAE.
- Helps you score better in the bid calculation process.
- Helps you to introspect on your company’s goals and objectives and thus bring in changes required to improve your ICV score by revisiting and refining ICV Improvement Plan of your company.
- Every successive ICV Certificate would add value to your company’s overall brand value.
Elevate Accounting and Auditing is one of the premier Audit Firm Services in Dubai, which is committed to provide timely and quality service to its client business entities for the following
- Preparation of Annual Financial Audit Report which is mandatory for applying ICV Certification.
- Support the business entity to enhance its ICV score by helping in preparation of ICV Improvement Plan document which is a part of ICV application process. ICV Improvement Plan carries value in a tender bidding process.
- Elevate Accounting and Auditing suggests you ways and means of incorporating various initiatives to improve your company’s ICV score.
- Elevate Accounting and Auditing can support your company in the ICV application process.
- Since, only a Pre-approved ICV certifier is entitled to certify any entity with ICV Certificate, The Elevate Accounting and Auditing is affiliated with Al Raqamiya Management Consulting – a pre-approved ICV Certifying body in UAE. Thus we provide you a single window service in ICV Certification process.