How to get a good ICV Score in Dubai?

The In-Country Value (ICV) program is a cornerstone initiative in the United Arab Emirates (UAE) aiming to stimulate the nation's industrial sector and bolster its contribution to the GDP. As a business operating in Dubai, a high ICV score translates to significant advantages, particularly when vying for government tenders and contracts. This blog serves as your comprehensive guide to achieving a top-notch ICV score and unlocking the potential for growth within the Emirati market.

What is a Good ICV Score?

An ICV score is a measure of how much a company contributes to the local economy in the UAE. While there's no exact number for a "good" score, a higher score usually shows a stronger commitment to supporting the local economy. To find out what's considered a good score, you should check the requirements in tender documents or guidelines from government entities. If you meet the ICV score requirement, you can qualify for business deals.

Understanding the ICV Framework

The ICV score is calculated based on a specific formula that considers various aspects of your company's contribution to the UAE's economic development. Here's a breakdown of the key factors influencing your ICV:

• Local Value Add (LVA): This component measures the value created through activities within the UAE. It encompasses factors like:

1. Manufacturing Cost: The percentage of production costs incurred in the UAE.
2. Investment: The value of your company's assets established in the UAE.

• Emiratization: The percentage of your workforce comprised of UAE Nationals. This demonstrates your commitment to developing the local talent pool.
• Expat Contribution: The salaries, training expenses, and benefits provided to expatriate employees.
• ICV Bonus & Advanced Technology & Sustainability Bonus: Additional points awarded for exceeding specific benchmarks in areas like sourcing from local suppliers, utilizing advanced technologies, and adhering to sustainable practices.

By actively working towards optimizing these elements, you can significantly elevate your ICV score.

Calculating ICV Score

The ICV score shows how much a company invests in the UAE (United Arab Emirates). It looks at how much the company spends on things like goods, services, and its employees in the UAE. Here's how it's calculated:

For all companies:

ICV Score = (Total Money Spent in UAE / Total Money the Company Makes) x 100

Different types of companies have slightly different ways to calculate it:

For Companies Making Things in UAE:

ICV Score = (Money Spent on Making Things in UAE + Money Spent on Emirati Workers + 60% of Money Spent on Expats) / (Total Money Spent)

For Companies Selling Things in UAE:

ICV Score = (Money Made from Selling Things x ICV of the Supplier + Money Spent on Emirati Workers + 60% of Money Spent on Expats) / (Total Money Spent)

For Companies Investing in UAE:

The score is 25% of all the things the company owns in UAE. And the more valuable their stuff in UAE, the higher the score.

ICV Score = Value of Company's Stuff in UAE / Total Value of Company's Stuff

Strategies to Enhance Your ICV Score

Here are practical steps you can take to improve your ICV standing:

• Embrace Local Sourcing: Prioritize sourcing raw materials, subcontracting services, and other operational needs from local UAE suppliers. This fosters connections within the Emirati business ecosystem and directly contributes to the local economy.
• Invest in Emirati Talent: Actively recruit and hire UAE Nationals. Provide training programs and career development opportunities to empower Emirati employees and showcase your dedication to the national workforce.
• Explore Manufacturing in the UAE: If feasible, consider establishing or expanding manufacturing capabilities within the UAE. This significantly boosts your LVA score and demonstrates long-term commitment to the Emirati economy.
• Embrace Innovation and Sustainability: Incorporate advanced technologies and sustainable practices into your operations. The ICV program offers bonus points for exceeding benchmarks in these areas, propelling your ICV score even higher.
• Seek Professional Guidance: Consulting with ICV auditors in Dubai can be immensely beneficial. They possess the expertise to analyze your current standing, identify areas for improvement, and guide you through the ICV certification process.

Obtaining Your ICV Certificate

Once you've taken concrete steps to enhance your ICV score, it's time to secure your official ICV certificate. Here's a general overview of the process:

• Gather Documentation: Compile all necessary documents, including audited financial statements, details of your workforce composition, and information on local sourcing and investments.
• Select a Certifying Body: Choose a UAE government-approved certifying body to evaluate your application.
• Complete the ICV Template: Utilize the official ICV template to meticulously record all relevant data pertaining to your company's contribution to the UAE's economy.
• Submit Your Application: Present your completed application and supporting documentation to the chosen certifying body.
• Verification and Certification: The certifying body will verify your information and, upon successful evaluation, issue your official ICV certificate.

Maintaining a High ICV Score

Remember, achieving a high ICV score is an ongoing process. Here are some tips for sustaining your success:

• Regularly monitor your ICV score and identify areas for further improvement.
• Continuously implement strategies that enhance your local value creation and Emirati workforce development.
• Stay updated on any changes or revisions to the ICV program guidelines.

By adhering to these guidelines and demonstrating your commitment to the UAE's economic growth, you can achieve a stellar ICV score and unlock a world of opportunities within the dynamic Dubai market.

How do ICV Auditors help achieve ICV Scores?

At Reyson Badger, we have ICV Auditors who can help companies in the UAE boost their ICV score. Our goal is to support you in showing your dedication to the UAE's economy and its development plans.

We work closely with you to improve your Emiratization agenda, which means hiring and developing local talent. With our expertise and experience, we've helped many companies enhance their ICV score and plans for improvement.

As part of the UAE's ICV program, we organize seminars and webinars to explain its importance. Our aim is to create more business opportunities within the UAE and increase job opportunities for Emirati nationals. Resyon Badger is recognized as a top audit firm in Dubai, and we're committed to helping businesses thrive in the UAE.