ICV templates instructions for ADLC program

In Section B, details regarding the ICV score in Dubai, UAE of a supplier is presented. Here the suppliers need not fill up their respective ICV value. Rather the figures will be filled automatically based on the values and information provided by the suppliers in the next sections. 

This section is signed duly by the suppliers’ authorized executives and one of the Certified Bodies along with their respective stamp, designation and date. Proper authorization is important as this page will be regarded as the ICV certificate for the suppliers. Suppliers can submit this certificate for the bid of any government or private companies’ tender. 

A questionnaire will have to be filled by all of the suppliers based on the information of their reported financial period. The certified bodies will not use this questionnaire for ICV calculation or certificate providing purpose. Rather along with the ICV certificate in Abu Dhabi, UAE, this questionnaire will be submitted by the suppliers in different tender bidding events. 

First of all, the supplier company will describe produced goods for their reported periods. If they have multiple product lines and similar products, they can categorize those goods under a broad section. 

Detail breakdown of suppliers’ total manufacturing cost during the year will be recorded here. At first, the costs will be separated based on whether they incurred within or outside the UAE. Then in each segment, the costs will further be split into internal and 3rd party costs. Internal costs are the depreciation and amortization related costs where the latter is the costs incurred for parties outside the organization. 

Third parties can be a manufacturer or service provider. For third party manufacturers, the list of the manufacturers (only those having an industrial license), their legal address, total amount of purchase etc. will be mentioned. For the latter case, only service providers having company license, their official address, amount of purchase made from them, their ICV% etc. will be presented. Total purchase cost will be multiplied by the higher percentage between 50% and service providers’ ICV% to determine the recordable amount. 

CSR related expenses, sponsorship fees, management fee and any types of fines will not be included under total cost here. 

Location for manufacturers of Free Zone is considered “within the UAE” and for service providers “outside the UAE”. 

Suppliers at first will enlist description of the goods or services procured for the reported year by categorizing them, specifying vendors’ names, locations, ICV value against each good or service and the total cost incurred in the procurement by them. Their ICV will be supported by one Certified Body verified ICV certificates. 

Vendors with no ICV certificate in Dubai, UAE will be allocated ICV score of zero. Vendors within the UAE mainland will be allocated 10% ICV score while calculating ICV of the supplier. 

Operating costs including utility, IT and government-related expenses will be included in calculating procurement cost. 

Instructions regarding non-inclusion of some cost items and locations for good manufacturers will also hold to be valid for service providers. 

All tangible assets including the development cost of the software will be recorded in their net book value by the suppliers along with mentioning whether the assets are inside or outside the UAE. In case of revaluation of any assets, the revalued amount according to last audited financial statements will be stated here. 

Assets under this category include investment properties, PPE, software development cost, capital WIP etc. 

Number of Emiratis employed by the suppliers and total yearly amount of salaries including all types of benefits that are recorded in the “Wage Protection System” will be demonstrated here for ICV calculation. Donations made to universities listed here https://www.adek.gov.ae/en/Education-System/HigherEducation/List-of-Higher-Education-Institutions-in-Abu-Dhabi will be regarded as a component of Emiratization. Management fees, internal training costs, the bonus of Emirati owners etc. will not be considered here. 

Suppliers under Free Zone will come up with documents duly authorized by Free Zone’s authority for supporting information regarding Emiratis employed by them and their gross annual benefits. 

Suppliers will provide information regarding the number of Expatriates, their annual gross salaries recorded in the companies’ WPS etc. to determine ICV value in Dubai, UAE. For supporting documents, suppliers of Free Zone will show special approval and documentation from Free Zone authority while PJSC will come up with stamped payroll documentation from management. 

Suppliers will record total annual revenue from their businesses under two segments- revenue from the UAE customers (including revenue from customers of Free Zone) and revenue from customers outside the UAE. For the latter revenue segment, two further classifications are a must- revenue earned from re-export without any value addition and revenue earned from export through adding value for the economy. 

Companies within the UAE will be eligible for this bonus only. Revenue that is directly collected from customers outside the UAE will be part for enjoying bonus. 

Emiratis will be part of this bonus. Growth in the net book value of suppliers’ last two audited financial statements’ assets will be included for the bonus.