What is the Link Between ICV Score and Business Competitiveness in UAE?

What is the Link Between ICV Score and Business Competitiveness in UAE?

The In-Country Value (ICV) score plays a crucial role in promoting business competitiveness among suppliers in the UAE. The ICV certification program, launched by the UAE Ministry of Industry and Advanced Technology (MOIAT), aims to increase the contribution of local industries to the economy and support Emirati businesses. A higher ICV score translates to better chances of winning government contracts and tenders in the UAE. In this article, we will explore how the ICV score impacts UAE business competitiveness.

ICV Score Boosts Business Competitiveness in UAE

Earning a high ICV score directly translates to enhanced competitiveness for businesses operating in the UAE.  Following are the several key factors that contribute in achieving and maintaining a favorable ICV score, ultimately boosting business competitiveness in the UAE dynamic marketplace.

  • l  Local Spending

One of the primary factors influencing the ICV score is local spending. Companies that actively contribute to the local economy through manufacturing, services, and other sectors receive higher ICV scores. Local spending can include procuring goods and services from UAE-based suppliers, as well as expenditures on facilities, equipment, materials, utilities and other operational needs within the UAE. This local spending not only benefits the company itself by supporting the domestic supply chain, but also aligns with the government’s broader economic objectives of growth and diversification by stimulating business throughout the country.

  • Emiratization

Emiratization, the process of hiring and training Emirati nationals, plays a pivotal role in elevating a company’s ICV score. By actively participating in the development of the local workforce, businesses contribute to the overall growth and sustainability of the UAE’s economy. The ICV calculation considers the number of Emiratis employed as well as expenditures on their salaries, benefits, and training. This rewards companies that make a meaningful investment in human capital development within the UAE.

  • Investment within UAE

Assets and investments made within the UAE contribute significantly to the calculation of the ICV score. This includes capital expenditures within the country as well as investments in facilities, equipment, property and other assets located in the UAE. Companies that demonstrate a commitment to the local market by establishing a strong physical presence through local investments are rewarded with higher scores, reflecting their dedication to contributing physical capital that drives economic prosperity and development within the nation.

  • Revenue Sources Affect Bonus Points

While local contributions are crucial, the ICV score also considers a company’s global reach. Revenue generated from international sources outside the UAE can earn bonus points, incentivizing businesses to expand their operations while maintaining a strong domestic focus on the local market. This rewards companies that successfully export UAE-made products and services while still contributing to the local economy through their domestic activities and supply chain.

  • Maintaining ICV Certification Regularly

To ensure the relevance and validity of the ICV score, companies must proactively renew their certification on a regular basis, such as annually. Regular updates and adherence to the evolving ICV criteria not only maintain the current score but also open doors to enhanced business opportunities by keeping the company’s local economic contribution profile up-to-date. This allows the company to continue leveraging their ICV score over time to support their competitiveness in pursuing public and private sector contracts.

  •  Seek the Expert Guidance of ICV Certificate Consultants in UAE

Gaining and maintaining a competitive ICV score requires thorough understanding of the ICV certification criteria and reporting requirements. ICV consultants have in-depth expertise navigating the program guidelines and can assist companies at each step of the process. ICV Consultants also handle all documentation and application submissions, freeing internal resources to focus on growth in the UAE marketplace. Their market intelligence helps stay informed of emerging high-value ICV categories or initiatives. It’s a smart investment that pays dividends in enhanced procurement and business opportunities across the UAE.

In essence, the ICV score is not merely a metric but a strategic tool for businesses aiming to succeed in the UAE. The higher the ICV score, the more competitive a company becomes. Local spending, Emiratization efforts, investments, diverse revenue sources, and regular certification renewal are all integral components that contribute to a robust ICV score. As businesses navigate the intricate landscape of the UAE marketplace, understanding and actively managing their ICV score is a crucial step toward sustained competitiveness. To achieve this, seeking the guidance of experienced ICV certificate consultants in UAE is an important and strategic move.

About Richard

Check Also

Types of Stocks You can Invest In

Let’s find out more about the various types of stocks you can invest in and …

Leave a Reply

Your email address will not be published. Required fields are marked *