The United Arab Emirates (UAE) is actively promoting local economic growth through the In-Country Value (ICV) Program. This initiative encourages businesses to contribute more significantly to the national economy by focusing on local procurement, employment, and investment. Understanding and participating in the ICV Program can offer substantial benefits to companies operating within the UAE.(Finanshels)
What is the ICV Program?
Launched by the Ministry of Industry and Advanced Technology (MoIAT), the ICV Program aims to enhance the UAE’s industrial sector by redirecting a greater share of government and private sector procurement to local businesses. The program assesses companies based on their contribution to the local economy, including:(Ministry of Interior Affairs UAE, Fintedu)
- Local Procurement: Purchasing goods and services from UAE-based suppliers.
- Emiratization: Hiring and training UAE nationals.
- Investment: Investing in local infrastructure and facilities.
- Export Contribution: Producing goods for export from the UAE.
- Research and Development: Investing in innovation within the country.(Fintedu, KPMG,)
Companies are awarded an ICV certificate reflecting their score, which becomes a critical factor in awarding government contracts and tenders.(Fintedu)
Why Should Your Business Care?
Participating in the ICV Program offers several advantages:
- Competitive Edge: An ICV certificate can enhance your company’s competitiveness in securing government contracts.
- Market Access: Many UAE government entities and large corporations prefer or require suppliers to have an ICV certificate.
- Economic Contribution: Demonstrating a commitment to the UAE’s economic development can improve your company’s reputation and relationships with local stakeholders.
Incentives: Some sectors may offer financial incentives or support for companies with high ICV scores.(Crowe, Finanshels)
How to Obtain an ICV Certificate
To acquire an ICV certificate, a company must undergo an evaluation by an authorized certifying body. The process involves:(UAE)
- Preparation: Gathering necessary documentation, including audited financial statements and details of local expenditures.
- Assessment: An authorized body assesses your company’s contribution to the local economy based on MoIAT guidelines.
Certification: Upon successful evaluation, your company receives an ICV certificate valid for 14 months.(Crowe, UAE)
Improving Your ICV Score
Companies can enhance their ICV scores by:(Crowe)
- Increasing Local Procurement: Sourcing more goods and services from UAE-based suppliers.
- Hiring UAE Nationals: Implementing programs to recruit and train Emirati employees.
- Investing Locally: Allocating funds to develop local facilities and infrastructure.
Supporting Local Innovation: Investing in research and development within the UAE.(Crowe, UAE Ministry of Finance, Fintedu)
HALO Middle East: Supporting Your ICV Goals
At HALO Middle East, we offer sustainable cleaning solutions that align with the objectives of the ICV Program. Our products help businesses:(Assist Plus)
- Reduce Environmental Impact: By minimizing chemical use and waste.
- Support Local Economy: Through local sourcing and partnerships.
- Enhance Workplace Health: Providing chemical-free cleaning options for safer environments.
By integrating our solutions, your business can improve its ICV score while promoting sustainability and operational efficiency
Conclusion
The ICV Program presents an opportunity for businesses in the UAE to contribute to national economic goals while gaining a competitive advantage. Engaging with the program can lead to increased market access, improved reputation, and potential financial incentives. Partnering with companies like HALO Middle East can further support your ICV objectives through sustainable and locally-focused solutions.
For more information on how HALO Middle East can assist your business in achieving its ICV goals, please contact us at www.halomiddleeast.com.
