Annual Financial Statements and Audit Reports are just the means and not an end in itself, when it comes to doing business in UAE. Yes, with introduction of In-Country Value Certification (ICV Certification) by ADNOC group, slowly other government and semi-government entities in UEA are also adopting the process of ICV Certificate and ICV Improvement plan in all the tender bidding processes. Hence Annual Financial Audit Reports have become a part and parcel of ICV Certification, not the whole of it. ICV Certification is much more than just Audit Reports duly signed by UAE authorized auditors.
The role of ICV Concultants and Audit Firms in UAE has become more crucial since the year 2018, when 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.
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.
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.
In summary, to get ICV audited, your company need to take the following measures:
- If you are a company which is less than 10 month old, your Management Accounts shall be considered for ICV Audit Calculations.
- If your company is above 10 month old, then get the annual audit done by a certified auditor in UAE.
- Your latest Financial Audit Statements should be in line with International Financial Reporting Standards (IFRS).
- Your latest Financial Audit Statements should not be older than 2 years.
- Once the Annual Financial Audit Statements are prepared and signed by authorized auditor, your company can apply for ICV Certification to any empaneled ICV Certifying Body.
- Each license of your company shall be considered as a separate legal entity. However, if under the same license, the company is operating same activities in different branches in the same emirate, single ICV certificate can be issued.
- To apply any bidding by ADNOC and its allied agencies, your company also needs to prepare its ICV Improvement Plan,which isan essential part of the bidding calculation process.
- Within one financial year, the ICV empaneled Certifying Body cannot be changed by the company without proper justification.
- The ICV Certification charges vary for different Certifying Bodies.
Once issued, ICV Certificate is valid for 14 months from the date of issue or from the date of new financial statements.
We, at Elevate Accounting and Auditing are a team of hard core professionals, ever prepared to clarify all your queries related to ICV Certification in UAE. Elevate Accounting and Auditing provides best ICV Consultancy services to companies desirous to work in UAE with ADNOC or other allied agencies.
Elevate Accounting and Auditing provides one of the best ICV Consultant and 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 in line with International Financial Reporting Standards (IFRS).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.
Elevate Accounting and Auditing Firm in Dubai, UAE is an approved agency which serves single window support to business entities to apply for ICV Certificate.
Elevate Accounting and Auditing Firm is equipped with knowledge, process and competent human resource to support the business entity in conducting its Annual Financial Audit and preparation of Annual Financial Audit Report. Elevate Accounting and Auditing Firm also helps the business entities to prepare their ICV Plan and also apply for ICV certification.