ICV Audit

A strong In-Country Value score can improve a supplier’s position when competing for opportunities with government entities and major national companies participating in the UAE National ICV Program.

Our ICV audit services in the UAE help businesses prepare their financial data, complete the official ICV template, organise supporting documents, and get ready for the technical review required for National ICV certification.

The UAE National In-Country Value Program is managed by the Ministry of Industry and Advanced Technology (MoIAT). It measures how much economic value a business contributes to the UAE through local procurement, investment, Emiratisation, employee costs, and other qualifying activities.

Whether you are applying for your first certificate, renewing an existing certificate, or looking to improve your ICV score before the next certification cycle, proper preparation can make the process more accurate and efficient.

What Is an ICV Audit in the UAE?

An ICV audit is commonly used to describe the verification process performed before a company receives its National ICV Certificate.

Technically, MoIAT refers to this as a technical review and certification process. Only Certifying Bodies authorised by MoIAT can conduct the required technical review and issue a National ICV Certificate through the official ICV platform.

During the process, the company’s financial information and supporting records are reviewed against the National ICV guidelines and formula.

The resulting certificate states the company’s official ICV score.

What Is the UAE National ICV Program?

The National In-Country Value Program is a UAE government initiative designed to increase the amount of procurement spending retained within the national economy.

The program encourages businesses to:

• Purchase more goods and services within the UAE
• Invest in UAE-based assets and operations
• Employ and develop Emirati talent
• Support domestic manufacturing
• Build stronger local supply chains
• Invest in technology and sustainability
• Increase the private sector’s contribution to the UAE economy

MoIAT states that the program considers expenditure on local manufacturing, products and services, investments, and the hiring and development of Emiratis.

Is ICV Certification Mandatory in the UAE?

ICV certification is not mandatory for every business operating in the UAE.

For suppliers participating in federal government tenders, MoIAT states that certification is optional. However, if a supplier does not provide an ICV Certificate, its ICV score is treated as zero for the relevant evaluation.

The practical importance of certification is therefore much greater for businesses that:

• Bid for government contracts
• Supply companies participating in the National ICV Program
• Work with major national organisations
• Participate in strategic industrial supply chains
• Want to improve their procurement competitiveness

The tender or participating entity may have its own commercial requirements, so businesses should review the relevant procurement documents before bidding.

Who Can Issue an ICV Certificate in the UAE?

A National ICV Certificate cannot be self-issued.

MoIAT authorises selected professional firms as ICV Certifying Bodies. These firms carry out the technical review of the supplier’s application and issue the certificate in accordance with MoIAT requirements.

The official MoIAT certification process includes selecting an audit firm, submitting the required information, completing the review or field-audit stage, and receiving the ICV Certificate.

Businesses should therefore make sure they are working with a Certifying Body listed by MoIAT.

What Documents Are Required for ICV Certification?

MoIAT identifies a valid business licence and audited financial statements among the principal requirements for certification. Additional documents depend on the business and the information included in its ICV calculation.

Typical documentation may include:

• Valid UAE trade licence
• Latest audited financial statements
• General ledger
• Trial balance
• Supplier purchase details
• Valid supplier ICV certificates where applicable
• Payroll records
• Employee information
• WPS-related payroll information
• Emirati employee records
• Training and employee-development costs
• Fixed asset register
• Investment schedules
• Revenue information
• Export revenue records where applicable
• Supporting invoices and purchase records
• Related accounting schedules
• Completed National ICV template

The exact information required depends on whether the company is treated as a goods manufacturer or service provider under the ICV methodology.

What Financial Statements Are Required for ICV Certification?

The National ICV guidelines require the figures entered in the ICV template to align with the supplier’s audited financial statements.

The financial statements should be prepared in accordance with International Financial Reporting Standards (IFRS) and audited by an independent UAE-licensed auditor in accordance with International Standards on Auditing.

The guidelines also provide that audited financial statements used for certification should not be more than two years old relative to the certification year.

For newly established businesses that are less than 10 months old and do not yet have audited financial statements, management accounts covering up to nine months may be used for the ICV calculation. Management accounts covering a period exceeding nine months require an audit.

How Is the UAE ICV Score Calculated?

The ICV score is not based on one factor.

The National ICV formula evaluates how much economic value a business creates within the UAE.

Key areas include:

ICV Area	What It Evaluates
Local procurement/manufacturing cost	How much qualifying business expenditure remains within the UAE
Investment	The value of qualifying assets and investment located in the UAE
Emiratisation	Employment, salaries, training and development of UAE nationals
Expatriate contribution	Qualifying contribution from expatriate employee costs
ICV bonus	Additional qualifying factors under the National ICV formula
Technology and sustainability	Additional opportunities available under the applicable formula

For manufacturers, MoIAT’s published formula assigns significant weight to manufacturing costs, investment, Emiratisation and expatriate contribution. Manufacturers can also access additional score opportunities connected with advanced technology and sustainability through the Industrial Technology Transformation Index.

For service providers, the calculation places significant emphasis on third-party spend and the ICV scores of suppliers, together with UAE investment, Emiratisation, employee contribution and qualifying bonuses.

Why Does Supplier Selection Affect Your ICV Score?

A company’s procurement strategy can materially affect its ICV calculation.

For service providers in particular, supplier expenditure is evaluated according to the ICV treatment of the relevant vendor.

Where applicable, businesses therefore benefit from maintaining:

• Accurate supplier master data
• Copies of valid supplier ICV certificates
• Clear UAE and overseas supplier classifications
• Proper purchase categorisation
• Supporting invoices and accounting records

The National ICV guidelines specify that supplier ICV percentages used in the calculation should be supported by valid certificates issued by authorised Certifying Bodies.

This means ICV planning should not begin only when the certificate is due. Procurement decisions made throughout the financial year can affect the eventual score.

How Long Is an ICV Certificate Valid?

Under the current National ICV guidelines, an ICV Certificate is valid for 14 months from the date of issuance of the audited financial statements used for the certification.

A supplier may obtain recertification while the certificate remains valid using the same audited financial statements, but doing so does not extend the original 14-month validity period attached to those statements.

Businesses should therefore monitor both:

• The certificate expiry date
• The date of the financial statements supporting the certificate

Early preparation can help avoid certification gaps during important tender periods.

Does Every UAE Company Need a Separate ICV Certificate?

The National ICV guidelines generally require certification for each legal entity seeking an ICV Certificate.

Each company licence is normally treated as a separate legal entity, even where multiple companies have common ownership.

However, branches within the same Emirate may qualify for one combined ICV Certificate where their licensed activities and ownership are identical, subject to the applicable National ICV requirements.

Businesses with multiple legal entities, branches or licences should confirm their certification structure before preparing the application.

Our ICV Audit and Certification Support Services

ICV Readiness Assessment

We assess the company’s accounting records, financial statements and supporting information before the certification process begins.

This helps identify missing information, classification issues, and documentation gaps that could delay the technical review.

ICV Template Preparation

We help prepare the official ICV template using information that can be reconciled with the company’s audited financial statements and supporting records.

The objective is to ensure that each material figure has an appropriate financial or documentary basis.

Financial Data Reconciliation

The ICV submission should be consistent with the underlying financial information.

We help reconcile:

• Revenue
• Cost of sales
• Operating expenses
• Supplier expenditure
• Payroll costs
• Fixed assets
• Investments
• Other relevant financial information

Supplier ICV Analysis

We review supplier information used in the ICV calculation and help organise valid supplier certificates where available.

This can also identify areas where procurement strategy may affect future ICV performance.

Emiratisation Data Review

Emirati employment and development are important elements of the National ICV formula.

We help organise supporting information relating to qualifying areas such as:

• Emirati salaries
• Employee information
• Training expenditure
• Development-related costs
• Relevant payroll records

Investment and Fixed Asset Review

UAE-based investment can contribute to the ICV score.

We review fixed asset and investment schedules to help ensure that qualifying information is correctly identified and supported.

Document Preparation for Certification

Before information is submitted to the Certifying Body, we help organise the supporting documentation into a clear review file.

This can reduce repeated document requests and make the certification process more efficient.

Coordination with the ICV Certifying Body

Where required, we can support management during the certification process by helping organise responses, reconciliations and supporting documents requested during the technical review.

The official certificate itself must be issued through the MoIAT system by an authorised Certifying Body.

What Is Reviewed During an ICV Audit?

The scope depends on the business model and certification calculation, but the Certifying Body may need to verify information relating to:

Review Area	Typical Supporting Information
Financial statements	Audited financial statements and accounting records
Revenue	Revenue schedules and supporting financial information
Third-party spend	Supplier ledgers, invoices and ICV certificates
Manufacturing costs	Production and cost records
Investment	Fixed asset registers and supporting schedules
Emiratisation	Payroll and employee documentation
Expatriate costs	Payroll-related records
ICV bonuses	Evidence supporting relevant bonus categories
Technology/sustainability	Applicable certifications, policies or programme evidence

Good documentation is critical because the ICV score must be supported by verifiable information rather than estimates.

ICV Audit vs Financial Statement Audit

An ICV audit and a statutory financial audit serve different purposes.

Area	ICV Audit / Certification Review	Financial Statement Audit
Main objective	Verify information used to calculate an ICV score	Express an audit opinion on financial statements
Framework	National ICV Program requirements	Applicable accounting and auditing standards
Primary output	National ICV Certificate and score	Independent auditor’s report
Main focus	UAE economic contribution	Fair presentation of financial statements
Local procurement	Major consideration	Considered only where relevant to financial reporting
Emiratisation	Directly affects ICV calculation	Not normally an audit scoring factor
UAE investment	Can affect ICV score	Recorded according to accounting standards
Can one replace the other?	No	No

Audited financial statements generally provide the financial foundation for the ICV certification process, but obtaining an annual financial statement audit does not automatically provide an ICV Certificate.

How Can a Business Improve Its ICV Score?

An ICV score should be improved through genuine business activity rather than last-minute accounting changes.

Potential areas for long-term improvement include:

Increase Qualifying UAE Procurement

Review whether appropriate goods and services can be sourced competitively from suppliers that contribute more value within the UAE.

Work with ICV-Certified Suppliers

Supplier ICV status can influence the value recognised from third-party spend under the applicable formula.

Invest in UAE Operations

Qualifying UAE-based assets and investment can contribute to the investment component of the score.

Strengthen Emiratisation

Employing, training, and developing UAE nationals can contribute to the Emiratisation component of the National ICV formula.

Maintain Better Supplier Records

Missing certificates or incomplete vendor information can prevent the business from fully supporting parts of its ICV calculation.

Plan Before the Financial Year Ends

ICV performance is linked to actual business activity reflected in the supporting financial period.

Businesses seeking a higher future score should therefore review procurement, investment and workforce strategy during the year instead of waiting until certification begins.

Consider Technology and Sustainability Opportunities

The National ICV framework includes additional opportunities connected with advanced technology and sustainability.

Manufacturers participating in the Industrial Technology Transformation Index may qualify for additional ICV score benefits under the applicable formula.

Common ICV Certification Problems

Applications can become more difficult when businesses have:

• Supplier records that do not match the general ledger
• Missing vendor ICV certificates
• Unsupported payroll information
• Incomplete fixed asset registers
• Unreconciled financial statements
• Incorrect cost classifications
• Missing invoices
• Multiple entities mixed within one accounting file
• Outdated financial statements
• Differences between the ICV template and audited accounts

Reviewing these areas before the Certifying Body begins its work can make the certification process more organised.

How Does the ICV Certification Process Work?

The process generally begins with preparing compliant financial information and completing the ICV template.

The business then selects an authorised Certifying Body through the applicable MoIAT process.

Relevant information and supporting documents are submitted for technical review.

The Certifying Body reviews the submission and may request additional evidence or clarification.

The official process can also include a field-audit stage.

Once the review is completed and the application is approved, the National ICV Certificate is issued through the official ICV platform. MoIAT’s current service page lists an indicative processing period of 14 to 28 working days, although actual timing can depend on the business, data quality, and readiness of the supporting documents.

Why Prepare Before the ICV Audit?

The quality of preparation can influence how smoothly the certification process proceeds.

Early preparation helps businesses:

• Identify missing records
• Reconcile ICV data with audited accounts
• Organise supplier certificates
• Correct supplier classifications
• Review payroll information
• Prepare investment schedules
• Understand score drivers
• Respond more efficiently to Certifying Body questions
• Plan future ICV improvement measures

An ICV review should therefore be treated as both a certification exercise and an opportunity to understand how the business contributes to the UAE economy.

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