What is the ADNOC ICV Certification Program?

In January of 2018, the Abu Dhabi National Oil Company (ADNOC) introduced an in-country value program (ICV). The purpose of ICV is: (i) diversify the economy in the UAE, (ii) creating more employment opportunities for UAE nations in the private sector, and (iii) localise certain part of the supply chain. The ICV certificate measures the supplier or contractor’s ICV contribution to the economy of Abu Dhabi.

 

 

Is my company eligible to be part of the ICV program?
There is no requirement in terms of company size when applying for this program. ICV program encourages all companies of any size in Abu Dhabi who are looking to work with governmental or quasi-governmental agencies. Companies that elect to participate have advantage over the competition during the tendering process.

For an entity with multiple branches, only one ICV application is required as there is one main licence for the entity. However, if there are several entities with different commercial licences, each entity will require to apply separately.

How is ICV evaluated?
For suppliers, ICV is measured based on: (i) the annual value of procurement made by the supplier from vendors based in the UAE, (ii) the total fixed assets in the UAE, and (iii) revenue generated from outside the UAE. The review and evaluation of the ICV application is conducted by the Certification Committee (comprising of the authorised representatives of all the participating entities to oversee and govern the ICV certification process that is carried out by the certifying bodies).

 

What is the process to obtain the certificate?

There are three steps to obtain an ICV certificate:

  • Complete and ICV submission template which requires the company’s audited financial statements
  • Consult with a certifying agency; and
  • Obtain the final approval from ICV committee after which the certificate will be issued.

The certificate is issued between 3-15 business days if the financial statements are ready and approved, depending on the size of the company.

Are there any guidelines with respect to the required audited financial statements?

No. Abu Dhabi government defined Audited Financial Statements as the company's financial statements that have been prepared and audited by an independent certified public accountant in accordance with International Financial Reporting Standards (IFRS).

Are there any factors considered in the ICV certification process?

Yes, goods manufactured, investment, Emiratisation, expatriate contribution, revenue from outside the UAE, and growth in investment, among others.

Where can a company obtain an ICV certificate?
There are certain agencies that are authorized to issue the ICV certificate such as Deloitte. It must be certificated by one of these certifying bodies on an annual basis.

How long is the validity of the ICV certificate?
The ICV certificate is valid for 14 months from the date of issuance of the company’s financial statements.

How much does it cost to obtain it?
The price may vary from one certifying body to another, as such the ICV certificate platform allows the applicant to receive quotations from all the certifying bodies.

What is the advantage of an ICV certificate?
Applying for an ICV certificate is optional for entities wishing to enter procurements in Abu Dhabi, however during the financial evaluation, their ICV score will be counted as zero (0) in case an ICV certificate is not submitted.

Does the ICV program apply to free zones as well?
Yes.

How does the ICV certificate help companies?
The ICV certificate helps entities and grants them the opportunity for the right of first refusal in the tender process.

How can we help?
Our team has the necessary skills, knowledge and experience to help clients obtain the ICV certificate within a short period of time. Our assistance covers free consultation, review of the company status, strategising with the client to help improve ICV score, provide guidance through the entire process and assist with renewal.