As the UAE continues to strengthen its national economic agenda, In-Country Value (ICV) Certification has become a critical requirement for businesses that want to grow, win government-linked contracts, and remain competitive in regulated sectors. In 2025, ICV is no longer just a “tender document” — it is a strategic business tool that directly impacts revenue opportunities, partnerships, and long-term compliance.

This guide explains what ICV certification is, who needs it, how it is calculated, common mistakes businesses make, and how companies can use ICV strategically to support sustainable growth.

What Is ICV Certification?

ICV Certification measures how much value a business adds within the UAE economy. It evaluates factors such as:

• Local procurement and sourcing

• Emiratization and workforce contribution

• Capital investment within the UAE

• Revenue generated from UAE-based operations

The higher your ICV score, the stronger your position when bidding for contracts with government entities, semi-government bodies, and major national companies.

Why ICV Certification Matters More in 2025

ICV requirements have expanded steadily across sectors. In 2025, ICV is increasingly used to:

• Differentiate suppliers during tender evaluations

• Promote local manufacturing and services

• Encourage hiring and training of UAE nationals

• Strengthen supply chain localization

For many tenders, price alone is no longer enough — suppliers with stronger ICV scores often gain a decisive advantage.

Who Needs ICV Certification?

ICV certification is particularly important for:

• Contractors and subcontractors

• Manufacturing and industrial companies

• Professional service firms

• Oil & gas suppliers

• Technology and infrastructure providers

• Companies supplying to government or government-linked entities

Even SMEs and service providers are increasingly being asked to submit valid ICV certificates as part of vendor onboarding.

How ICV Certification Is Calculated

ICV is not a self-declared score. It is calculated based on audited financial information and operational data, typically including:

1. Revenue Analysis

• UAE-generated revenue vs. foreign revenue

2. Cost Structure

• Local procurement

• Imported goods and services

• Subcontracting within the UAE

3. Workforce Composition

• Emirati employees

• Total payroll spent in the UAE

4. Capital Investments

• Fixed assets located in the UAE

• Long-term investments supporting local operations

Each component contributes to the final ICV score, which is issued in the form of an official certificate.

Validity of ICV Certificate

An ICV certificate is valid for 14 months from the date of the audited financial statements used for its preparation. Once expired, businesses must obtain a new certificate to remain eligible for ICV-based tenders.

Common ICV Challenges Businesses Face

1. Low ICV Scores Despite Strong Revenue

Many profitable companies still receive low ICV scores because:

• Procurement is largely offshore

• Minimal UAE-based assets

• Limited local hiring

Revenue alone does not guarantee a strong ICV position.

2. Poor Financial Structuring

ICV relies heavily on accurate financial classification. Errors such as:

• Incorrect expense mapping

• Misclassification of imports vs. local spend

• Incomplete payroll data

can significantly reduce scores.

3. Late or Last-Minute Certification

Businesses often apply for ICV:

• After a tender is announced

• Without strategic preparation

This limits the ability to improve scores meaningfully before submission deadlines.

ICV and Risk-Based Thinking: A Strategic Parallel

While ICV is not an AML concept, it benefits from a risk-based and strategic approach:

• Focus resources on areas that improve score impact

• Prioritize high-value improvements (local sourcing, assets, staffing)

• Avoid one-size-fits-all changes

Just as regulators expect businesses to focus compliance where risk is highest, ICV requires businesses to focus investment where score improvement is most effective.

Role of Advisors and Auditors in ICV Certification

ICV certification must be issued by an approved certifying body, supported by audited financials. Professional firms like Swenta assist businesses by:

• Reviewing financial data for ICV readiness

• Identifying score improvement opportunities

• Ensuring accurate cost and revenue classification

• Supporting compliant documentation and certification

The goal is not just certification, but certification with a competitive score.

Practical Steps to Improve Your ICV Score

1. Review Procurement Strategy

• Shift suppliers to UAE-based vendors where feasible

• Consolidate local purchasing

2. Optimize Workforce Planning

• Increase Emiratization where operationally viable

• Maintain proper payroll documentation

3. Invest Locally

• Acquire UAE-based assets

• Strengthen physical presence in the country

4. Plan ICV Annually

• Treat ICV as part of business planning, not a compliance task

• Align financial year-end strategies with ICV objectives

ICV Certification and Long-Term Business Growth

ICV is not just about winning one tender. Companies that consistently maintain strong ICV scores benefit from:

• Better access to large contracts

• Stronger government and semi-government relationships

• Improved local market reputation

• Sustainable alignment with UAE economic priorities

In 2025, ICV is increasingly viewed as a measure of commitment to the UAE economy, not just a regulatory metric.

ICV certification has evolved into a strategic requirement for doing business in the UAE. Companies that approach it proactively — with proper financial structuring, local investment, and expert guidance — gain a clear competitive advantage.

Rather than treating ICV as an annual formality, businesses should integrate it into their financial, operational, and growth strategies. With the right planning and advisory support, ICV can become a powerful driver of long-term success.