National In-Country Value (ICV) program is one of the major strategic frameworks used with the intention of enhancing the performance of UAE’s industrial sector and locally owned companies by enhancing their percentage of involvement. Obtaining ICV certificate in UAE offers organizations  an advantage in procurement of government contracts and tenders by attaining a higher ICV score. This article explores various means that organizations can employ to improve their ICV score.

Tracking expenditure accurately

The first recommendation when working on the improvement of the ICV score is to critically record all the business expenses. Some of the essential costs that should be well monitored include:

• Goods manufacturing/third party spend cost
• Investment in UAE
• Emiratization,
• Expatriate contribution
• Bonus – Revenue from outside UAE, Emirati Head counts & Investment Growth

In essence, accurate tracking of costs helps companies to generate the necessary details in the ICV certificate UAE template to facilitate calculation of the score. This also assists them to see areas of development that are needed for the subsequent years.

Increasing local procurement

Localization is one of the measures that should be encouraged with the aim of improving the local economy. The suppliers should redirect their attention to acquiring as many goods and services within the UAE. This will assist in increasing the overall percentage of total costs spent locally as well as assist in raising the ICV score. Suppliers can:

• Source more materials and components locally from manufacturers based in the UAE
• Outsource more services such as utilities, rentals, telecom services to the UAE providers
• Examine ICV certificates and try to rely on suppliers with higher ICV ratios
• Periodically inspect the distribution of expenses between local and foreign procurement.

Optimizing investments in UAE

Investment in UAE assets contributes 10 percent towards the overall ICV score, and 15 percent where it is increased progressively based on net business value ranging from AED 5 Million to AED 150 Million. The following are some strategies that may be effective in the optimization of UAE investments:

• Invest more on land, buildings, equipment; establish production factories in the country
• Upgrade and buy new machineries and technologies to improve current UAE facilities
• Progressively increase the percentage of fixed assets in which location is labeled “Inside UAE”

Promoting Emiratization

Promoting Emiratization is helpful in order to raise the ICV score. The suppliers should try to hire more Emirati nationals and ensure they are trained to perform the needed tasks. This will assist in decreasing unemployment level among the citizens of UAE. The following strategies can be used in implementing Emiratization:

• Take on more Emirati employees and make sure they are registered on the WPS system
• Provide fair and competitive wages and remunerations for the fellow Emirati employees
• Finance outside training courses in an effort to improve Emirati capabilities.
  Collaborate with operational institutes such Sondoq Al Watan to nurture the talents.
• Some key metrics may include the number of Emirati employees and the total Emirtization costs.
• Try to achieve the increase in the annual Emirati salaries year by year.
• Employment levels give progressive bonuses up to 15% which makes Emiratization to be a big opportunity.

Leveraging expats effectively

While expat employment alone own 10% weightage in ICV scores, companies can further boost scores by:

• Record the number of expatriates in key positions as against the general positions.
• Assess whether certain expatriate positions can gradually be filled in by locals, the Emirati’s in this case.
• All the expats need to be registered in WPS.
• There is also the factor of training to be considered, especially in the case of training expatriate workers in the UAE as and when they get deployed.
• However, a progressive approach can be recommended when it comes to the ICV percentage for expats since their numbers are few.
• This allows for the tracking of several key expat metrics such as headcount, salary & benefits at a constant level.
• Expatriates should only be hired to fill positions that do not have any qualified Emiratis available for recruitment

Table:  ICV Calculation for Expat Contribution:

Number of Expats	ICV %
1 to 5	1% to 3%
6 to 50	4% to 6%
51 to 200	7% to 9%
Above 200	10%

Increasing revenue from outside UAE

Earning revenue from foreign markets boosts the in-country value. Suppliers based in the UAE can qualify for a revenue bonus by:

• Generating sales from direct exports to customers outside the country
• Providing goods and services to overseas clients with value addition in the UAE
• Gradually increasing the proportion of total annual revenue from international markets
• Claiming only revenue where UAE operations play a key role in order fulfillment
• Tracking export revenues separately from annual financial statements
• Qualifying for the 5% bonus on increasing revenue streams from outside UAE

Emirati Headcount

Increasing the number of Emirati employees enhances in-country value. Suppliers can:

• Actively recruit more UAE nationals across different job levels
• Retain and develop existing Emirati talent through training
• Enroll all Emirati employees in the Wage Protection System
• Qualify for a bonus upto 5% based on Emirati headcount enrolled in WPS
• Strive to progressively increase the number of Emiratis over time

Investment Growth

Increasing investments in the UAE enhances economic growth. Suppliers can qualify for:

• An investment growth bonus of up to 5%
• By expanding existing operations and assets within the country
• Through continually upgrading machinery, infrastructure and facilities
• By comparing increase in net book value of UAE assets year-on-year
• Calculating the growth percentage to qualify for this bonus

FAQs

Q1. What are the different components of ICV score calculation?

A1. Goods manufacturing/third party spend, Emiratization, investment, expatriate contribution and revenue are the areas that have been taken into focus. Weights differ with regards to the manufacturer as well as the service provider.

Q2. How often should companies get ICV recertification?

A2. The ICV certificate is valid for 14 months from the financial year-end date of audited statements used. Companies can optionally get re-certified within this period by applying the same financials.

Q3. Can consultants help companies with ICV certification?

A3. Yes, accredited ICV certification bodies recognized by the Ministry of Industry & Advanced Technology offers ICV certification services such as applying for certification, documentation, planning with the auditors etc.

In conclusion, the ICV certificate in UAE has offered companies to enhance their investment in the economy of UAE by focusing on all the aspects that can assist to improve the scores progressively. For this purpose, companies should consider seeking assistance from expert ICV certificate consultants in UAE to obtain reliable ICV certification services.