ICV Basics for Companies in Dubai
The In-Country Value (ICV) program supports the UAE’s industrial growth and local economy. A strong score helps a bidder win public tenders and long-term contracts. The authority assesses your purchases, your investments in the UAE, and your people strategy. The certificate, issued after a review by an approved certifier, shows your contribution to the UAE economy for the assessed year.
Key outcomes of a higher score:
- You gain preference in government and semi-government procurements.
- You build trust with lenders and partners across supply chains.
- You align your company with national goals under an audited framework.
What Counts as a “Good” ICV Score
A “good” score depends on the tender and the entity that invites bids. A buyer usually states a minimum ICV requirement inside the RFP. Your company should match that threshold before submission. You should also compare your ratio with sector peers during planning for bids. A better ratio, supported by evidence, improves your commercial ranking during evaluation.
The ICV Framework Explained
The authority calculates your score from audited facts. The template groups inputs into components, each verified by documents:
- Local Value Add (LVA): Your manufacturing cost incurred in the UAE, your local OPEX, and your local services purchased from certified suppliers.
- Investment in the UAE: Your tangible assets located within the UAE, such as plants and machinery, office fit-outs, and warehouses.
- Emiratization: Your headcount and payroll paid to UAE Nationals, including training spend recorded with evidence.
- Expatriate Contribution: A portion of expat payroll and training outlay, recognized under the template.
- Bonuses: Extra points for advanced technology, sustainability initiatives, and local sourcing from certified vendors.
Your auditor validates each number against audited financial statements, against HR records, and against contracts approved by management.
Practical ICV Formulas in Simple Terms
The public template uses a weighted method, but you can view the logic in easy form:
- General view:
ICV % ≈ (Eligible Spend in UAE ÷ Total Cost Base) × 100 - Manufacturing focus (illustrative):
(Local production cost + Emirati payroll + allowed expat payroll share) ÷ Total cost - Trading focus (illustrative):
(Revenue × supplier ICV %) + Emirati payroll + allowed expat payroll share) ÷ Total cost - Investment view (illustrative):
Net book value of UAE assets ÷ Total assets
Your actual certificate will follow the official weights issued by the program owner for your assessment year.
Strategies That Lift Your ICV Score
Use clear actions with proof. Each action below includes a post-modifier to show compliance.
- Source from UAE suppliers approved by the program; keep signed contracts verified by procurement.
- Increase Emiratization with hiring plans documented in HR files and training logs endorsed by line managers.
- Move production steps into the UAE, even partial assemblies tested by QA.
- Invest in fixed assets located in the UAE, with capitalizations recorded by finance and assets tagged by fixed-asset register.
- Adopt cleaner tech and energy measures tracked by ESG reports for the sustainability bonus.
- Engage certified vendors and capture their supplier ICV certificates inside your vendor master.
Quick wins you can start this quarter
- Map your top 50 suppliers and request their current ICV certificates.
- Re-bid non-critical imports with local alternatives approved by quality.
- Convert interns to entry-level Emirati roles backed by training plans.
- Capitalize qualifying leasehold improvements supported by invoices.
- Build a single evidence folder organized by ICV component.
Evidence You Must Prepare for Certification
When you submit the official template, attach documents that prove each claim:
- Audited financial statements for the assessment year.
- Trial balance mapped to the ICV template.
- Payroll reports split by Emirati and expat staff, with visas validated by PRO records.
- Supplier ICV certificates matched to purchase values.
- Fixed-asset register with locations inside the UAE.
- Utility bills and lease contracts for premises used by operations.
- Training invoices and attendance for workforce programs.
- ESG or sustainability evidence where a bonus is claimed.
How to Get the ICV Certificate
Follow a simple flow to avoid rework:
- Select a certifying body from the approved list; sign an engagement counter-signed by management.
- Complete the ICV template using your audited numbers; tie every figure to the GL.
- Upload evidence in labeled folders; include cross-references on each schedule.
- Respond to queries from the certifier with clarifications issued by finance.
- Receive the certificate that shows your final score; track its valid-through date for tenders.
Maintain and Improve the Score Each Year
An ICV score isn’t static. Your team should:
- Review supplier mix every half-year with updated certificates.
- Plan Emiratization hiring with budget approvals.
- Align capex roadmaps with plant needs and sustainability goals.
- Train category managers to include ICV in RFP weighting.
- Run a pre-audit two months before year-end to fix gaps.
How ICV Auditors Add Value
Mubarak Al Ketbi (MAK) Auditing supports companies that want a stronger, defendable ICV score. Our team reviews ledgers, tests samples, and prepares schedules traceable to your audit pack. We coach procurement and HR to capture the right fields inside purchase orders and payroll files. We also perform a readiness check before certification so your submission passes smoothly.
What Can Help – Mubarak Al Ketbi (MAK) Auditing
Our specialists guide you through every ICV step—from data mapping to certificate delivery—with simple checklists and clear controls. We help you raise local sourcing, plan Emiratization, and document investments with audit-ready proof. If you’re ready to bid with confidence, remember: the ball is in your court.
For more information
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact / WhatsApp: +971 50 276 2132
