ICV Certificate in the UAE: Meaning, Benefits, and Application Process

In the UAE, winning major contracts is no longer based on price and technical capability alone.  The National In-Country Value (ICV) Programme has redirected over AED 200 billion back into the UAE economy since its launch in 2018, supporting local manufacturing, supplier development, and job creation. More than 7,000 suppliers have obtained ICV certificates, and major entities including, ADNOC, Aldar, Etihad Rail, and many federal and semi-government organisations, now use ICV scores as part of their supplier evaluation process.

For businesses, this changes how contracts are won. Price and technical capability still matter, but bidders that demonstrate stronger local contribution often have a competitive edge. As more public and government-related entities adopt the programme, ICV is becoming a standard part of supplier qualification rather than a niche requirement.

What is an ICV certificate, and why does it matter for your business? Understanding this is no longer just a compliance question. It is part of positioning your business to access large-scale procurement opportunities in the UAE.

Understanding What an ICV Certificate Is in the UAE

An ICV certificate measures how much value your business actually contributes to the UAE economy.

If you’re searching for what an ICV certificate is, the practical definition is simple: it’s a percentage score issued under the UAE’s National In-Country Value (ICV) Programme that procurement teams use to evaluate and rank suppliers. The programme is managed by the Ministry of Industry and Advanced Technology (MoIAT) and is based on audited financial and operational data.

Your ICV score is calculated from verified information across four core areas:

• Local procurement (spend with UAE-based suppliers)
• Emiratisation and related employment metrics
• Investment in UAE assets, facilities, and operations
• Revenue retained within the UAE economy

Since 2018, ICV has:

• Delivered AED 242 billion back into the UAE economy
• Supported the employment of 17,000 UAE nationals in the private sector

In 2024 alone:

• AED 55 billion was reinvested locally through ADNOC’s (Abu Dhabi National Oil Company) procurement  
• ADNOC committed to directing a further AED 200 billion into the UAE economy over the next five years through ICV-linked opportunities

For suppliers, the score directly affects access to major procurement opportunities across energy, infrastructure, and industrial sectors.

But here’s a misconception to drop early: ICV doesn’t replace VAT registration, economic substance rules, AML controls, or audited accounts. It sits on top of them. In a tight bid, two suppliers can price similarly, meet technical specs, and still see the higher ICV score rank above the other.

Why The ICV Certificate Matters For Businesses

ICV is not mandatory for all companies, but for suppliers targeting government or large-entity contracts, it has become a commercial requirement.

An ICV certificate can:

• Improve competitiveness in tenders
• Increase supplier ranking during bid evaluation
• Support qualification with major procurement entities
• Improve access to long-term framework agreements

Since 2022, major procurement entities, led by ADNOC, have driven large-scale localisation through ICV-linked initiatives:

• AED 72 billion in local manufacturing agreements signed since 2022
• A target of AED 90 billion worth of products to be manufactured in the UAE by 2030
• Expansion aligned with the national Make it in the Emirates industrial strategy
• 33 new manufacturing facilities launched by partners to support local production

Entities using ICV evaluation include ADNOC, Aldar, Etihad Rail, utilities, and multiple federal and semi-government organisations.

For businesses operating in B2B sectors, the implication is practical. The certificate does not just improve your chances of winning work; in many cases, it determines whether you can access the opportunity pipeline at all.

Who Needs An ICV Certificate?

Not every company requires ICV, but certain business models depend on it.

You typically need an ICV certificate if your growth plan relies on government, semi-government, or strategic infrastructure buyers that bake ICV into prequalification and evaluation. This includes many contractors and subcontractors, because buyers increasingly push localisation requirements down the supply chain.

• Suppliers to government-related entities and major buying organisations
• Vendors working with ADNOC-linked procurement or MoIAT-participating companies
• Contractors and subcontractors bidding into large projects
• Manufacturers and service providers targeting public-sector programmes

You can often deprioritise ICV if you’re pure B2C, a small services firm with no tender exposure, or an early-stage startup not selling into enterprise procurement. The clean test is a pipeline: if tenders are likely within 6–12 months, ICV planning stops being optional.

Understanding How The ICV Score Is Calculated

The ICV score measures how much of your company’s spending and economic activity stays within the UAE. It is calculated using audited financial statements and expressed as a percentage.

At a high level, the principle is simple:

ICV Score = (Local UAE spend ÷ Total business cost or revenue) × 100

However, the calculation is adapted based on the type of business.

For Service Providers and Suppliers

The score reflects how much of your operating spend supports the local economy, including:

• Value of goods and services procured from UAE-based suppliers (adjusted by the supplier’s own ICV score)
• Salaries and benefits paid to Emirati employees
• 60% of employment costs for expatriate staff

In practical terms, the more you source locally and build a UAE-based workforce, the higher the score.

Here’s the formula:

ICV Score = ((Value of Purchase x ICV of supplier) + Emirati Cost + 60% of Expat Cost) / Total Cost

For Manufacturers

The focus shifts to local production value:

• Manufacturing and operational costs incurred within the UAE
• Employment costs for Emirati staff
• 60% of expatriate workforce costs

Businesses with higher local production, facilities, and operational spending typically achieve stronger scores.

Here’s the formula:

ICV Score = (Manufacturing cost incurred in UAE + Emirati Cost + 60% of Expat Cost) / Total Cost

For Asset-Based Businesses and Investments

ICV also considers the physical economic footprint:

ICV Score = UAE-based asset value ÷ Total asset value

This means companies that invest in equipment, facilities, or infrastructure within the UAE increase their contribution and their score.

ICV Certification Process in the UAE

The certificate is issued through an approved third-party process.

• Finalise audited financial statements for the required period and ensure the audit scope matches the bidding entity.
• Complete the ICV template using consistent figures from audited accounts, payroll records, and procurement schedules.
• Submit to an ICV certifying body approved for ICV assessments under the programme rules your buyer follows.
• Respond to verification queries, usually around supplier classification, invoice trails, and entity naming consistency.
• Receive the certificate showing your ICV percentage score and validity dates.

Validity is a detail founders miss until a bid portal rejects the upload. Under MoIAT programme guidance, the certificate is valid for 14 months from the financial statement date. That means a company can be “valid” on paper but commercially expired for a tender if the buyer requires a tighter window.

How Businesses Can Improve Their ICV Score

ICV is not fixed; operational decisions can increase your score. The programme measures what is documented and auditable, not intent. Improving ICV is less about major restructuring and more about increasing measurable local value through procurement, hiring, and operational presence.

Example: How the Score Changes

Consider a service company with AED 10 million in annual operating costs:

• AED 6 million spent on overseas vendors
• AED 4 million spent on UAE-based suppliers
• No Emirati employees
• Minimal local assets

In this case, only 40% of spending contributes to local value, which limits the ICV score.

If the same company adjusts its operations:

• Shifts AED 2 million of procurement to UAE-based suppliers
• Hires Emirati employees
• Invests AED 1 million in local equipment or facilities

Its local economic contribution increases, and so does its ICV score.

Because the assessment is data-driven and renewed annually, changes in local sourcing, hiring, and operational investment directly affect future scores. For businesses targeting government or large-entity contracts, improving ICV becomes an ongoing operational discipline, not a one-time exercise. ‍

ICV Starts with the Right Operating Structure

Since the score is based on audited financials and local economic activity, your business structure, operations, and documentation need to support that visibility from the start.

In Meydan Free Zone, businesses can establish this foundation through a fully digital company formation process, with setup completed in under 60 minutes through the Fawri license option, with passport-only documentation. Founders are also supported by MOFA-accredited licensing for official recognition. Once licensed, the business can hire employees, build a UAE-based workforce, and operate locally. Support for ICV readiness is facilitated through mAccounting and mPlus, which provide access to accounting, audit, and advisory services required to prepare the financial records needed for certification.

Establishing a compliant operating structure early allows financial history, local spending, and workforce data to build over time. In practice, ICV strength comes from operational substance, not last-minute preparation, and businesses that plan for this early move into certification and tender eligibility with far fewer delays.