TRW & Co · Energy and projects
ICV Certification in the UAE: ADNOC and the National ICV Programme
ICV certification UAE suppliers need is a single certificate, issued under the National In-Country Value Programme overseen by MoIAT, that scores how much of a company's spending stays in the UAE. ADNOC, federal entities and other buyers use it in tenders, and bidders without one generally score zero. This guide explains the formula, process, validity and legal risks.
Key pointFrom financial years ending after 31 December 2024, ICV certificates rest on stand-alone audited accounts of the entity itself, so branches and subsidiaries that used group figures need their own audit before the next bid.
At a glance
One certificate per entity
MoIAT governs a unified certificate accepted by ADNOC, federal entities and other participating organisations, while each buyer sets its own tender weighting.
Valid for 14 months
The certificate runs for 14 months from the issue date of the audited financial statements, and cannot be issued more than two years after the financial year-end.
No certificate, zero score
For federal tenders MoIAT states the certificate is optional, but suppliers that do not provide one are given an ICV score of zero in evaluation.
Stand-alone audits now required
For financial years ending after 31 December 2024, certification uses audited IFRS statements of the entity itself, not carve-outs from group accounts.
Commitments become contractual
Improvement plans offered in bids, such as Emirati hiring or local investment, usually become binding contract terms with reporting duties and remedies.
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ICV certification UAE: the short answer
ICV certification UAE suppliers obtain is a certificate issued under the National In-Country Value Programme, run by the Ministry of Industry and Advanced Technology (MoIAT), that scores how much of a company's spending stays in the UAE economy. The score is calculated from audited financial statements and a standard template, verified by a MoIAT-authorised certifying body, and then used by ADNOC, federal government entities and other participating organisations when they evaluate tenders.
The certificate is voluntary in the narrow sense that you can bid without one, but a supplier without a certificate is generally scored at zero for ICV. In sectors such as oil and gas, utilities, defence, telecoms and major infrastructure, that can decide the contract. One certificate per legal entity is used by all participating entities, and it is valid for 14 months from the date your audited financial statements are issued.
The audit and the ICV template are accounting work. We deliver them with our group company A&A Consultancy; TRW & Co, as a law firm, covers the legal and regulatory side, including tender terms, ICV commitments in contracts, Emiratisation compliance and disputes. The certificate itself is always issued by an independent, MoIAT-authorised certifying body.
The National ICV Programme and ADNOC
ADNOC pioneered in-country value in its own procurement and began implementing it across its group in early 2018. According to ADNOC's unified certification page, the programme was extended to government and semi-government entities from late 2019 and, in September 2021, MoIAT took it to federal level. MoIAT now governs certification, while each participating entity decides how to use the certificate in its own procurement policy.
The federal government describes the programme's aims on the official UAE portal: localising supply chains, developing local industry and services, attracting investment, creating private-sector jobs and directing a larger share of public spending into the national economy. Certified companies gain an advantage in tenders and contracts based on their ICV score.
Two separate layers
- Certification is unified. MoIAT sets the formula and guidelines and authorises the certifying bodies. A supplier needs one certificate per legal entity.
- Implementation is entity-specific. ADNOC, federal entities and other participants each decide how much weight ICV carries, whether they ask for improvement commitments and how they monitor delivery.
This split matters legally. Your certificate is governed by MoIAT's guidelines, but your obligations under a contract are governed by the buyer's tender documents and the contract you sign. Read both.
Who needs an ICV certificate
Any company that bids for, or supplies into, a participating entity should assume ICV certification UAE buyers recognise is needed. In practice that includes ADNOC group companies and their main contractors, federal ministries and authorities, and the government-related entities and national companies that have joined the programme. Subcontractors are increasingly asked for certificates too, because main contractors want to raise their own scores.
For federal tenders MoIAT states that the certificate is optional but that the ICV score is calculated as zero if a supplier does not provide one. Some major projects go further and set target ICV levels or ask bidders to commit to improvement plans, which then become contractual. Our oil and gas and infrastructure projects practices see these commitments regularly in tender packages.
How the ICV score is calculated
MoIAT's supplier certification guidelines (most recently revised in October 2023) distinguish between two kinds of supplier:
- Goods manufacturers, meaning entities with an industrial licence, are scored on manufacturing cost, investment, Emiratisation, expatriate contribution, an ICV bonus and an advanced technology and sustainability bonus.
- Service providers, meaning every other licence including traders and agents, are scored on third-party spend instead of manufacturing cost, with the same other elements and a sustainability bonus.
The core ratio adds the in-country value of goods and services you buy, your spending on Emirati staff and 60 per cent of your spending on expatriate staff in the UAE, divides it by total cost and weights the result. Investment, Emiratisation and expatriate contribution then add weighted percentages based on the value of UAE assets, Emirati salaries and training, and the number of expatriate employees. Bonuses reward revenue earned outside the UAE (excluding re-exports), Emirati headcount, growth in UAE asset values and, under the 2023 guidelines, recognised sustainability and advanced technology credentials.
| Component | What it measures | How to improve it |
|---|---|---|
| Third-party spend or manufacturing cost | How much of your cost base is bought from UAE suppliers and their own ICV scores | Buy from certified UAE suppliers; collect their certificates |
| Investment | Net book value of assets in the UAE compared with total assets | Locate fixed assets and capital investment in the UAE |
| Emiratisation | Salaries, benefits and external training of WPS-registered Emirati employees | Hire and train UAE nationals; keep payroll on WPS |
| Expatriate contribution | Number and cost of WPS-registered expatriate staff in the UAE | Employ staff in the UAE rather than through offshore payroll |
| Bonuses | Export revenue, Emirati headcount, asset growth, sustainability and technology | Grow exports, invest locally, obtain recognised certifications |
One detail surprises many suppliers: under the guidelines, goods manufacturers in free zones count as "within UAE", but free zone service providers are treated as "outside UAE" when a buyer calculates its third-party spend. A free zone services company may still be certified, but it contributes less to its customers' ICV than an equivalent mainland provider. That can affect your commercial positioning, so consider it when choosing a mainland or free zone structure.
The ICV certification UAE process step by step
- Finalise audited financial statements. Prepare stand-alone IFRS financial statements for the legal entity, audited by a UAE-registered auditor. The certificate cannot be issued more than two years after the financial year-end.
- Collect the data. Gather supplier invoices and their ICV certificates, payroll and WPS records split between Emiratis and expatriates, fixed asset registers, export sales and training records.
- Complete the ICV template. Fill in MoIAT's submission template, which reconciles to the audited accounts line by line.
- Appoint a certifying body. Choose a body from MoIAT's authorised list and sign its engagement letter. You cannot normally switch bodies within the same year without justification.
- Verification. The certifying body tests the figures against your records, raises queries and agrees adjustments. MoIAT says applications are processed within a month once all documents are in.
- Issue and sign. The certificate is endorsed by the certifying body and e-signed by your authorised signatory on the ICV platform. It is then valid for 14 months from the issue date of the audited financial statements.
For financial years ending after 31 December 2024, certification is based on stand-alone audited financial statements of the entity being certified. Carve-outs from group or combined accounts are no longer accepted, so a branch or a subsidiary that relied on parent-level accounts now needs its own audit. Plan the audit timetable around your next bid deadline.
New companies and branches
A company less than ten months old that has no audited accounts may use management accounts covering up to nine months; longer periods must be audited. Each licensed legal entity needs its own certificate, although branches in the same emirate with identical activities and ownership can be combined. Recertifying within the 14-month window uses the same audited statements and does not extend validity.
Documents for ICV certification UAE certifying bodies ask for
Certifying bodies test the template against evidence, so the quality of your records largely determines how fast ICV certification UAE suppliers achieve and how many adjustments are made. Prepare the following before you engage the certifying body:
- Audited IFRS financial statements for the entity, with the trial balance and mapping to the template.
- Trade licence, and for manufacturers the industrial licence, to confirm the supplier category.
- A supplier spend listing, with the ICV certificates of UAE suppliers and evidence of where non-certified suppliers are located.
- Payroll records registered on the Wage Protection System, split between Emirati and expatriate staff, with training invoices.
- The fixed asset register showing net book values of UAE and non-UAE assets.
- Sales listings identifying revenue earned from customers outside the UAE, separating genuine exports from re-exports.
- Evidence supporting any sustainability or technology bonus, such as recognised ISO certificates.
Keep this file after certification. Participating entities can review certifying bodies' engagements, and a buyer that later questions your score will ask for the same evidence.
Cross-border angle
Foreign groups often supply UAE projects through a mix of local entities and overseas affiliates. For ICV certification UAE rules look only at the UAE legal entity being certified: equipment bought from a parent abroad, engineers on a foreign payroll and assets held outside the country all reduce the score. Groups from India, the UK, China, Korea, Singapore and the GCC frequently rebalance by moving procurement, staff or assets into the UAE entity, or by setting up local manufacturing.
Those moves have consequences beyond ICV. Intra-group sales and service charges must be priced at arm's length for corporate tax, secondments need UAE work permits, and asset transfers may carry customs and VAT costs. Saudi Arabia, Oman and Qatar run their own local content regimes with different rules, so a regional supplier usually needs a country-by-country plan rather than a single approach.
How ICV affects tender evaluation
Each participating entity decides how ICV feeds into evaluation. Common approaches include adding a weighted ICV score to the commercial evaluation, giving the best ICV bidder a chance to match the lowest price, setting minimum ICV targets for large packages and asking bidders to submit ICV improvement plans with future commitments. ADNOC states only that each entity considers the certificate according to its own policy, so the tender documents are the definitive source.
Improvement commitments deserve legal attention. Once accepted, a commitment to raise Emirati headcount, localise manufacturing or invest in UAE assets is usually a contractual obligation, sometimes with reporting duties and remedies for shortfall. Make sure the commitment is realistic, conditional where necessary on contract volumes and approvals, and consistent with your obligations under the Emiratisation rules enforced by the Ministry of Human Resources and Emiratisation.
Illustrative scenario
Illustrative only; generic parties. A mainland engineering services company plans to bid for a framework agreement with an energy company. Its last certificate was issued from group-level accounts and its score was modest because most equipment was bought from overseas affiliates.
The company commissions a stand-alone audit, moves part of its procurement to certified UAE distributors, transfers fabrication equipment into the UAE entity and puts its expatriate engineers on UAE payroll. Its new certificate scores higher. In the tender it offers an improvement plan linked to the volume of work actually awarded, with an annual reporting mechanism. During negotiation, the contract is amended so that a shortfall caused by reduced call-offs does not count as a breach.
Risks and common mistakes
Overstating figures in the template
MoIAT's guidelines warn that gross negligence or wilful default in submissions can lead to punitive measures, including a ban from dealing with participating entities. Participating entities can also review certifying bodies' work. Every number in the template should tie back to audited accounts, payroll and invoices. If a past certificate contained errors, take advice on correcting them before the next bid rather than repeating them.
Letting the certificate expire before a bid
Validity runs for 14 months from the issue of the audited accounts, not from the date the certificate was signed. Late audits are the most common reason suppliers bid without a current certificate and receive a zero score. Build the ICV timetable into your financial year-end plan and track the expiry date against your tender pipeline.
Signing improvement commitments you cannot deliver
A bid team under pressure may promise Emirati hires or local investment that the business cannot support. Once in the contract, those promises can lead to deductions, reduced future scores or disputes. Review commitments with HR, finance and legal before submission, and negotiate conditions, reporting periods and remedies. Our procurement and supply contracts team can review tender terms.
Ignoring structure and supply chain effects
Free zone service providers count as "outside UAE" for their customers' third-party spend, and offshore payroll does not count towards expatriate contribution. Moving staff, assets or contracts between group entities can change scores sharply, and can also have corporate tax, transfer pricing and employment consequences. Look at the whole picture before restructuring for ICV alone.
How TRW & Co and A&A Consultancy help
The ICV certification UAE workstream splits naturally. A&A Consultancy delivers the statutory audit, prepares the ICV template and supports you through the certifying body's review. TRW & Co advises on the legal side: tender terms and ICV commitments, supply and subcontract flow-down clauses, Emiratisation and employment compliance, group restructuring and any dispute with a buyer about scores or commitments. For audit timing, see our guides on statutory audit requirements and audited financial statements for corporate tax.
Checklist for ICV certification UAE suppliers
- Confirm which buyers in your pipeline apply ICV and how they weight it.
- Schedule a stand-alone IFRS audit early enough to certify before key bids.
- Collect suppliers' ICV certificates and keep payroll on WPS.
- Choose an authorised certifying body from MoIAT's list.
- Track the 14-month validity against tender deadlines.
- Review every improvement commitment as a contractual obligation.
- Check the tax and employment effects of any restructuring aimed at raising your score; the Federal Tax Authority expects related-party pricing to be at arm's length.
For tender, contract or compliance questions on ICV, contact TRW & Co at info@trw.co or +971 58 942 1012. MoIAT's ICV programme pages list the current guidelines and certifying bodies.
Frequently asked questions
01What is an ICV certificate in the UAE?
An ICV (In-Country Value) certificate is issued under the National ICV Programme overseen by the Ministry of Industry and Advanced Technology. It shows a percentage score reflecting how much of a company's spending benefits the UAE economy, based on local procurement, investment, Emiratisation, expatriate employment and exports. A MoIAT-authorised certifying body verifies the figures against audited financial statements. ADNOC, federal government entities and other participating organisations use the score when evaluating tenders.
02How long is an ICV certificate valid?
An ICV certificate is valid for 14 months from the issue date of the audited financial statements it is based on. Recertifying during that period with the same accounts does not extend validity. A certificate cannot be issued more than two years after the financial year-end. Plan your audit so that a new certificate is ready before the old one expires, especially if you have major tenders due, because bidding without a valid certificate usually means an ICV score of zero.
03Is ICV certification mandatory?
Not by law for every company, but it is effectively required to compete for many contracts. MoIAT states that for federal tenders the certificate is optional, yet suppliers that do not provide one receive an ICV score of zero. ADNOC and other participating entities apply ICV under their own procurement policies, and large projects may set ICV targets or ask for improvement commitments. If you supply energy, utilities, infrastructure or government buyers, treat certification as a commercial necessity.
04Who issues ICV certificates?
Only certifying bodies authorised by MoIAT can issue ICV certificates, and MoIAT publishes the list on its ICV programme pages. The certifying body reviews your template and supporting records, raises queries and endorses the certificate on the ICV platform, which your authorised signatory then e-signs. Your statutory auditor prepares the audited accounts; the certifying body is a separate engagement. A&A Consultancy can deliver the audit and template preparation, while TRW & Co advises on the legal side.
05Can a new company get an ICV certificate without audited accounts?
Yes, in limited cases. Under MoIAT's guidelines, a company less than ten months old that has no audited financial statements may use management accounts covering up to nine months. Periods longer than nine months must be audited. Each legal entity needs its own certificate, and from financial years ending after 31 December 2024 established entities must use stand-alone audited statements rather than figures carved out of group accounts.
06Do free zone companies benefit from ICV?
They can be certified, but the treatment differs. Under MoIAT's guidelines, goods manufacturers in free zones are treated as within the UAE, while free zone service providers are treated as outside the UAE when their customers calculate third-party spend. A free zone services business therefore adds less to its customers' ICV scores than a comparable mainland provider. If ICV-driven customers are central to your strategy, consider this when choosing your licence structure.
Sources and official materials
- MoIAT: National ICV Programme — Programme pages, guidelines and certifying bodies
- u.ae: The National In-Country Value (ICV) Program — Official overview of aims and how certification works
- ADNOC: Unified ICV certification process — History of ADNOC ICV, unified certificate and evaluation areas
- Ministry of Human Resources and Emiratisation — Emiratisation and WPS rules feeding the ICV score
- Federal Tax Authority — Corporate tax and transfer pricing rules relevant to restructuring
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
