The United Arab Emirates has turned out to be a world centre of innovation, trade and industry. The reason behind this change is the National In-Country Value Program that directs government expenditure to local industries. In the case of businesses aiming to win government or ADNOC, Aldar, and Mubadala contracts, the ICV Certificate is a prerequisite in being competitive in the 2026 markets.
It may be difficult to navigate the regulations of the Ministry of Industry and Advanced Technology. Business One Tax & Accounting simplifies compliance, streamlines reporting and concentrates on growth. This manual describes the ICV Certificate and maximization of scores.
How is the ICV Score Calculated?
The score of the ICV Certificate is not merely a number that has been randomly added to you, but rather a carefully assessed and weighted percentage, which indicates the portion of your revenues that remain in the territory of the UAE. It is calculated on the basis of your last audited financial statements which are prepared in accordance with the International Financial Reporting Standards (IFRS).
Local Procurement and Supplier ICV Contribution
This is the cornerstone of the scorecard, often accounting for up to 50% of the total weight. It measures how much you spend on goods and services from other UAE-based suppliers. Crucially, your score is influenced by the ICV scores of your own vendors. If you purchase from a supplier that holds a high-value ICV Certificate, your own score benefits through a mathematical “multiplier.” This creates a powerful incentive for businesses to source locally, strengthening the national supply chain. Managing these vast procurement records requires precision, which is why the Accounting Services provided by Business One Tax & Accounting are essential for categorizing your annual spend correctly.
Investments in UAE (Net Asset Base Contribution)
The program rewards companies that “plant roots” in the country rather than operating as mere “pass-through” entities. This pillar, contributing up to 25%, evaluates the net book value of your tangible and intangible assets located within the UAE. This includes:
- Plants: Factory and warehousing.
- Equipment: Special machinery and technological infrastructure.
- Intangible Assets: UAE registered Software or patents created locally. The greater the amount of money you pour in the local infrastructure, the greater this part of your score becomes.
Emiratization (Emirati Employee Salaries) and Expatriate Contribution
The government of the UAE is highly devoted to the development of the human capital and integration of the private sector.
- Emiratization (up to 15%): This is calculated by total salaries, benefits and training expenses incurred on the UAE Nationals. The load on training and career development of Emiratis is also even greater in 2026.
- Expatriate Contribution (up to 10%): While the focus is on locals, the program recognizes the value of the expatriate workforce. However, the calculation only considers a portion of expat costs to encourage a balanced workforce. To ensure these figures match your official records, utilizing the Payroll Services from Business One Tax & Accounting helps maintain the necessary Wage Protection System (WPS) reports required for the audit.
Bonus Points (Exports, Emirati Headcount Growth, Investments)
Bonus points are given on certain strategic milestones (maximum of 5%): to stimulate great performance.
- Export Revenue: This is the revenue obtained by the export of goods or services and it introduces foreign currency into the local economy.
- Emirati Headcount Growth: Recognizing those companies that are enthusiastic about hiring locals annually.
- New Investments: The companies have made enormous capital expenditure within the particular financial year under audit.
Tips to Improve Your ICV Score (Hire UAE Nationals, Source Locally, Invest in UAE)
The process of boosting your score is an annual working plan and not a rush-hour trick before the audit. You can enhance your position by:
- Hiring UAE Nationals: The direct effect of hiring UAE Nationals is the active recruitment via NAFIS platform that will directly affect the Emiratization pillar.
- Sourcing from Certified Vendors: When entering a contract with a new supplier, request to look at their ICV Certificate. The quickest method of boosting your procurement contribution is to pick vendors with high scores.
- Capital Reinvestment: Instead of leasing equipment from overseas, consider purchasing assets within the UAE to increase your net book value.
For professional assistance in analyzing these metrics and identifying “leaks” in your score, Business One Tax & Accounting provides detailed insights into your expenditure to identify strategic areas for improvement.
The Step-by-Step Process to Get Your ICV Certificate
Ready to begin? Here is your actionable roadmap:
- Preparation & Data Gathering: Gather your audited financial statements, detailed lists of suppliers (with their ICV certificates), payrolls (by Emirati staff and expatriate staff), and fixed asset registers of the corresponding financial year.
- Select an Approved ICV Auditor: Legalize the engagement with your selected auditor and send all the prepared instructions to be reviewed by the latter in advance.
- Engage the Auditor & Submit Documentation: Formalize the engagement with your chosen auditor and submit all prepared documents for their preliminary review.
- Audit & Verification Process: The auditor will thoroughly verify your data. They will also call your suppliers to ensure that the values of procurement are confirmed, that they have verified the location of their assets and that their payrolls have been calculated correctly. This is a rigorous process.
- ICV Score Calculation & Report Drafting: The auditor applies the official formula to calculate your final ICV score and drafts the comprehensive certification report.
- Certificate Issuance: Upon your final review and approval, the auditor issues the official ICV Certificate, which is typically valid for 14 months from the date of your audited financial statements.
Important insights: How to Register for Corporate Tax in the UAE: Step-by-Step Guide
Benefits of ICV Certification for UAE Businesses
Why invest the time and resources into certification? In 2026, the benefits of the ICV Certificate extend far beyond mere compliance.
Gaining Competitive Edge in Government and ADX Tenders
In the UAE’s competitive bidding environment, the ICV score acts as a “weighting factor” during the commercial evaluation phase. When government entities like ADNOC or the Ministry of Health evaluate bids, the ICV score often accounts for 30% to 40% of the total evaluation. This means a company with a slightly higher bid price but a superior ICV score will frequently win the contract over a cheaper, non-certified competitor.
Enhancing Market Credibility and Transparency
Holding a certificate proves to the market that your financial records are transparent and that you are an active contributor to the nation’s vision. It builds immense trust with Tier-1 contractors and international investors. This level of transparency is achieved through rigorous Bookkeeping Services, a core offering of Business One Tax & Accounting that ensures every transaction is documented and audit-ready.
Supporting UAE Economic Growth, Emiratization and Supply Chain Localization
Being a partner of the program, your business will be a legitimate participant of the campaign to make it in the Emirates. You are not only selling a service but you are contributing the national GDP diversification and a high-skill and sustainable future of the new generation of Emiratis. This corporate citizenry usually results in enhanced brand loyalty and opportunities of long term joint ventures with semi-government bodies.
ICV Certification for Dubai and UAE Government Contracts
While the program was initially pioneered by ADNOC in Abu Dhabi, it has successfully evolved into a unified National ICV Program, now covering Dubai and all Northern Emirates.
ICV Requirements for Dubai and Abu Dhabi-Based Companies
These requirements are currently very consolidated under the ministry of industry and advanced technology (MoIAT). The tech entrepreneur in the Dubai Internet City or the manufacturer in the KIZAD in Abu Dhabi is required to provide a standardized ICV template which is certified by one of the authorized certifying bodies. Starting January 2025, MoIAT has introduced more severe regulations concerning “Branch Audits,” where a license is to have separate audited statements. Business One Tax and Accounting will help you through these nuances so that your entity complies with these stringent branch level reporting requirements.
How Dubai Businesses Benefit from ICV Certification (Government Procurement)
The companies based in Dubai often submit bids in federal contracts and semi-governmental contracts (including those of DEWA, Emirates Group, or Expo City). Having an ICV Certificate allows Dubai firms to compete on a level playing field across the entire country. It effectively “opens the borders” for Dubai-based service providers to access the massive industrial budgets of Abu Dhabi-based giants.
ICV in Free Zones vs Mainland: Key Considerations for Dubai Companies
- Mainland Companies: Generally receive an automatic “Mainland Bonus” (around 10%) in the ICV calculation, reflecting their direct participation in the local economy.
- Free Zone Companies: While fully eligible, they must carefully track their local vs. international spend. For these entities, the VAT Services at Business One Tax & Accounting are crucial to distinguish between zero-rated exports and local taxable supplies that contribute toward the ICV procurement score.
Give it a quick look: VAT Fines and Penalties in UAE for 2026
Costs, Validity, and Renewal of ICV Certificates
Success in the ICV program requires meticulous financial planning and an understanding of the timeline involved.
How Much Does an ICV Certification Cost in the UAE?
There is no fixed price for the certificate itself, as fees are set by the independent Certifying Bodies approved by MoIAT. Costs typically vary based on:
- Company Turnover: Larger companies require more extensive audit procedures.
- Transaction Volume: High volumes of purchase invoices increase the complexity of the verification. Generally, the certification fee ranges from AED 8,000 to AED 15,000. However, the real cost lies in the preparation. Utilizing the Corporate Tax Services of Business One Tax & Accounting helps ensure your financial data is already compliant with UAE laws, which significantly reduces the hours an auditor needs to spend on your file, ultimately lowering your costs.
Validity Period of ICV Certificate (Typically 14 Months from Audited FY)
An ordinary ICV Certificate expires in 14 months after the date of your Audited Financial Statements. This 14-month grace period is planned so that the companies have the two months grace period to finish the annual audit of the companies and recertify without this leave in his certified status.
Renewal and Recertification Process (During Validity)
Renewal should not be an afterthought. You should ideally start the process at least 3 months before your current certificate expires. This involves preparing a new ICV template based on the most recent fiscal year’s data. If your business undergoes a major structural change, such as a merger or a significant change in ownership, you may be required to apply for a fresh ICV Certificate to reflect your new economic standing.
Don’t miss this: A Complete Guide to Corporate Tax in UAE 2026 Updates
The Role of Professional Support: Why Choose Business One Tax & Accounting?
The path to a high ICV score is paved with accurate, well-organized data. This is where Business One Tax & Accounting becomes your most valuable strategic asset. Their comprehensive suite of services ensures that every aspect of your business is optimized for the ICV audit:
- Accounting Services: Their experts ensure every dirham of your expenditure is categorized under the correct ICV header, preventing “lost” points due to misclassification.
- Bookkeeping Services: Vitality should not come as an after-thought. You are supposed to commence the process at least 3 months prior to your current certificate expiry date.
- VAT Services: Accurate VAT returns are essential for verifying your local procurement spend. Business One Tax & Accounting reconciles your VAT data with your ICV template for 100% accuracy.
- Corporate Tax Services: In 2026, aligning your ICV strategy with the UAE Corporate Tax regime is vital for tax efficiency and compliance.
- Payroll Service: Managing the complexity of the Wage Protection System (WPS) ensures your Emiratization and Expat salary data is flawless for the audit.
Also read: Best VAT Consultants In Dubai 2026
The End Note!
In conclusion, the ICV Certificate is not merely a compliance measure, but an intelligent strategic decision that would help to succeed in the UAE market. It enhances credibility, increases tender wins and is an indicator of long term commitment. The certification with Business One Tax and Accounting will be easy, fast and in a better position to ensure that your competitive edge is maximized.
Frequently Asked Question
