In recent years, businesses in the UAE and other countries have become increasingly aware of the value of In-Country Value (ICV) certification.
This certification has become crucial for companies that want to demonstrate their contribution to the local economy. It is a measure of how much value a business creates within the country in terms of sourcing materials, labor, and services.
In this article, we will explore what an ICV certificate is, how it is awarded, its benefits, and why it matters for companies operating in certain industries.
What Is an ICV Certificate?
ICV stands for In-Country Value. It refers to the value added to products and services within a specific country. This value is calculated based on local procurement, labor, and services that businesses use in their operations.
Essentially, the ICV certificate quantifies how much a company contributes to the local economy through its activities.
The main goal of ICV certification is to encourage businesses to source materials locally, employ local labor, and support the country’s economic growth.
This is particularly important for governments seeking to diversify their economies, reduce reliance on imports, and build a stronger, self-sufficient workforce.
How Is ICV Certificate Awarded?
Obtaining an ICV certificate is not a simple process. It requires businesses to demonstrate that they meet certain criteria that contribute to the local economy.
Companies must provide documentation that shows how they source materials, hire local employees, and engage with local suppliers and service providers.

The process begins with a detailed application that includes financial reports, records of local procurement, and proof of services provided within the country.
Once the application is submitted, a third-party auditor reviews the documents and calculates the ICV score. This score reflects the percentage of value a company has added to the local economy. The higher the score, the more ICV value the business has contributed.
Benefits of Having an ICV Certificate
An ICV certificate offers several benefits to businesses, particularly when it comes to gaining access to government contracts and local procurement opportunities.
Government contracts, especially in sectors like oil, gas, and construction, often prioritize companies with a high ICV score. This gives businesses with certification a competitive advantage when bidding for tenders or winning contracts.
In addition to opening up more business opportunities, an ICV certificate helps companies demonstrate their commitment to the local economy. This can enhance a company’s reputation and credibility, which is particularly valuable in markets where trust and local involvement are important.
Another key benefit is the promotion of local content development. By encouraging businesses to source locally and employ domestic labor, ICV certification helps stimulate the local economy.
It supports job creation, strengthens local industries, and reduces the reliance on imports.
Industries That Benefit from ICV Certification
Several industries can benefit from obtaining ICV certification, particularly those involved in sectors that contribute significantly to the local economy.
In the energy sector, which includes oil and gas industries, ICV certification is especially valuable. Many government contracts in this field require businesses to demonstrate a high level of local content.
Companies that can show they use local suppliers and hire local workers will have a significant edge over competitors that do not.
The construction industry also benefits from ICV certification. Projects often require a significant amount of local sourcing, whether it’s materials, services, or labor.
Companies with an ICV certificate are seen as contributing more to the local economy, which is an important factor for developers and project owners.
Manufacturing and engineering sectors also rely heavily on local content. The ability to prove local value creation helps these businesses win contracts and build stronger relationships with clients and stakeholders.
In addition, sectors like logistics and transportation are also seeing the value in obtaining ICV certification. As more businesses adopt local sourcing and employment practices, the need for certification grows across different industries.
Key Documents and Requirements for ICV Certification
To obtain an ICV certificate, businesses must submit a variety of documents that demonstrate their local content. Key documents typically include financial statements such as balance sheets and income statements.
Companies must also provide evidence of local sourcing, including receipts or contracts with local suppliers. Documentation that shows the use of local services and labor, such as employment records and payroll information, is also required.
Many businesses make mistakes during the application process by failing to provide accurate or complete documentation.
To avoid delays or rejections, it is important to ensure all required documents are submitted and that they are accurate. Companies should also maintain proper records of their local sourcing activities to make the application process smoother.
Challenges in Obtaining an ICV Certificate
The process of obtaining an ICV certificate can be complex. One of the main challenges businesses face is the difficulty in calculating their ICV score. The process involves tracking and proving the local value added in various areas, including procurement, labor, and services. This can be time-consuming and requires careful documentation.

Another challenge is the need for compliance with local regulations, which can change frequently. Businesses must stay updated on the latest ICV guidelines to ensure they remain in compliance. Failure to do so can result in delays or complications during the certification process.
To overcome these challenges, businesses can work with consultants or experts who specialize in ICV certification.
These professionals can guide companies through the process, ensuring that all necessary steps are followed and that the documentation is correct.
The Future of ICV Certification
As the focus on local content and economic diversification continues to grow, the role of ICV certification will likely become even more important.
Many governments, particularly in the UAE and GCC countries, are tightening regulations around local procurement and labor, making ICV certification a key factor in business operations.
Looking ahead, businesses will need to adapt to evolving regulations and standards.
Companies that stay ahead of the curve by maintaining accurate records and adhering to local content guidelines will continue to enjoy the benefits of ICV certification.
Conclusion
In summary, the ICV certificate is an important tool for businesses looking to demonstrate their contribution to the local economy.
By obtaining certification, companies can gain access to more business opportunities, build credibility, and support the growth of local industries.
The process of obtaining the certificate requires careful planning and documentation, but the rewards are significant for companies that succeed.
For businesses operating in sectors like energy, construction, manufacturing, and logistics, an ICV certificate can provide a competitive edge and open doors to new opportunities.
As the world moves towards more localized economies, having an ICV certificate will likely become even more valuable in the years to come.