Understanding In-Country Value
The In-Country Value (ICV) program, established by the UAE Ministry of Industry and Advanced Technology (MoIAT), is designed to stimulate economic growth by redirecting government and semi-government procurement spending toward local suppliers and service providers. An ICV certificate is now a prerequisite for bidding on contracts with major entities including ADNOC, Mubadala, EDGE Group, and numerous federal and emirate-level government bodies.
Your ICV score, expressed as a percentage, reflects the proportion of your business activities that contribute to the UAE economy. A higher score directly improves your competitiveness in procurement evaluations.
How ICV Scores Are Calculated
The ICV score is calculated based on several weighted components:
Revenue Retention
The percentage of your revenue that remains within the UAE economy through local spending on goods, services, and workforce. This is typically the largest component of the ICV score.
Emiratization
Employment of UAE nationals, particularly in skilled and managerial positions, significantly boosts your ICV score. The weighting rewards both the number and seniority level of Emirati employees.
Local Supplier Spending
Procurement from UAE-based suppliers, especially those with their own ICV certificates, contributes positively. Spending with ICV-certified suppliers receives higher weighting than spending with non-certified local suppliers.
Investment in UAE
Capital expenditure on assets located in the UAE, investment in local R&D, and contributions to national strategic sectors all enhance your score.
Export Revenue
Revenue generated from exporting UAE-manufactured or UAE-sourced products and services adds to your ICV score, reflecting the country's economic diversification goals.
Strategic Optimization Approaches
Based on our experience advising businesses across multiple sectors, the most effective ICV optimization strategies include:
- Supply chain localization: Systematically identify opportunities to shift procurement from international to UAE-based suppliers. Even partial localization of key supply categories can yield significant score improvements.
- Workforce planning: Develop an Emiratization strategy that goes beyond minimum quotas. Investing in UAE national talent development programs demonstrates long-term commitment and improves scoring.
- Subcontractor management: Ensure your subcontractors also hold valid ICV certificates. Your score benefits from the cascading effect of working with ICV-certified partners.
- Financial structuring: Banking with UAE-based financial institutions, maintaining local insurance coverage, and utilizing UAE-based professional services all contribute to revenue retention metrics.
- Documentation excellence: Maintain meticulous records of all local spending, employment data, and investment activities. Incomplete documentation is the most common reason for lower-than-expected scores.
The Certification Process
ICV certification involves the following steps:
- Data preparation: Compile financial statements, payroll records, supplier invoices, and investment documentation
- Certifying body selection: Choose from the list of MoIAT-approved certifying bodies
- Assessment: The certifying body reviews your documentation and calculates your ICV score
- Certificate issuance: Valid for one year from the date of issuance
- Annual renewal: Certificates must be renewed annually with updated financial data
Common Mistakes to Avoid
- Waiting until a tender deadline to begin the certification process (allow at least 4-6 weeks)
- Failing to obtain ICV certificates from key subcontractors
- Not maintaining proper documentation of local spending throughout the year
- Overlooking indirect contributions to ICV (e.g., training programs, CSR activities)
How Farah Solutions Can Help
Our ICV Certification service provides comprehensive support from initial assessment through certification and ongoing optimization. We help businesses identify the highest-impact improvement areas and develop actionable plans to maximize their scores. The Farah Suite platform tracks ICV-relevant data year-round, ensuring you are always prepared for certification.
Disclaimer: This article provides general guidance on the ICV program. Specific scoring methodologies and weightings are determined by MoIAT and may be updated periodically.
Sources: Ministry of Industry and Advanced Technology (moiat.gov.ae), ICV Program Guidelines, ADNOC ICV Requirements
