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ICV Certificate is the requirement of every company willing to become a supplier for ADNOC that is given by ADNOC empaneled Certifying Body. Suppliers who do not possess ICV Certification will be allowed to participate in ADNOC tenders; however, their ICV Score will be Zero in the bid evaluation. ICV certification needs to be obtained by each company, which intends to do business with ADNOC or any of its group companies.
How is ICV certification issued?
ICV Certification will be issued based on last audited financial statements, which should not be older than two years from the certification year. ICV certification is valid for 18 months from the date of the issue or till a new set of financial statements is issued (whichever is earlier). The supplier company shall be responsible for obtaining the revised ICV certificate within two months of the issuance of audited financial statements.
How does ICV certification work?
ADNOC providers are required to demonstrate how they are helping deliver In-Country Value by declaring their ICV Certificate and their guaranteed In-Country Value score for the past financial year. Business partnerships with ADNOC include an ICV appraisal as part of the tender evaluation and award process. Suppliers should approach the ADNOC designated confirmation organization for ICV affirmation. The organization requires necessary documentation with points of interest that must be given by the supplier to the motivation behind audit and confirmation.
ICV Certification score needs to be finished by an ADNOC approved certifying body on an annual basis and submitted by the provider to ADNOC for each proposal. ICV score computation involves evaluating the economic value added within the UAE for the products or services offered by the organization.
What are the Goals of ICV Certification?
- Employment Generation – ICV Certification should create extra employment opportunities for citizens of the UAE in the private sector.
- GDP diversification – ICV Certification should support UAE GDP diversification through manufacturing more products and services within the UAE. It allows the UAE government to achieve some of its macroeconomic objectives, namely sustainable economic growth, a satisfactory balance of payments situation, employment, and redistribution of income.
- Strategic considerations: ICV Certification should create strategically critical links of the value chain for chosen categories. It creates a competitive advantage by performing strategically vital activities more cheaply or better than its global competitors.