Over the years, the UAE and especially Abu Dhabi has strengthened its local economy. They have done so by reducing the reliance on oil and natural gas and diversifying into other sectors of the economy. The UAE has started many significant initiatives over the years which has helped them in achieving this and one such initiative is the National In-Country Value (ICV) Program. The main goal of this was to redirect spending into the UAE economy through local suppliers, manufactures and workforce development. In this blog we will understand what the ICV program entails, challenges of implementing the ICV program and the role of government and private sectors. We will also look at how BLZ can assist you in the ICV program.
Importance of ICV Program
The major focus of the program is that it aims to boost the UAE’s self-reliance, and this can be achieved by prioritizing local production, supporting Emirati talent and increasing self-sufficiency. This ensures a competitive edge for your company but at the same time enhances your brand’s reputation as it portrays your business as a committed contributor to national growth. Here’s what the ICV certification means for businesses:
- Access to Contracts
Every country calls for tenders for various public works and so does the UAE. When companies with an ICV certificate apply to these tenders they are prioritized over other companies that do not have any certificate. - Competitive Advantage
When a company has an ICV certificate it tends to demonstrate their contribution to the economy. Clients tend to see these companies as reputable organizations making them more attractive to different stakeholders. - Sustainable Growth: By supporting local production, the ICV Program helps businesses align with long-term economic goals of the UAE, fostering stability and resilience.
- Access to Contracts
Challenges of Implementing the ICV Program
Just as any government program offers significant advantages, individuals or companies may encounter challenges in aligning with its requirements.
Here are some common issues and potential solutions to consider:
- Supply Chain Limitations
Companies may not fully meet the demand of various tender requirements or may not have the necessary network making it challenging to procure all materials and services locally, but this can be tackled by building strategic relationship with local suppliers and manufactures. They help in bridging this gap. - Skills Development in Local Industries
Another challenge of the ICV program is that it required companies to prioritize Emirati talent, which requires additional training and development for local employees. Companies can tackle this by investing in training programs with educational institutions and upskill Emirati workforce.
- Supply Chain Limitations
The Role of Government and Private Sector Collaboration
While such challenges are present at every organization and government initiative, they can always be overcome by partnerships between government bodies and private sector players, collaboration and working together in overcoming the hinderance.
The UAE government actively supports businesses through incentives, industry-specific support, and continuous development of infrastructure to support the ICV Program. For example,
- Incentives for Training and Hiring
The government realizes the importance of training programs that support Emirati workforce development. This helps the private players meet the ICV requirements more easily. - Support for Local Suppliers
Initiatives aimed at increasing the capacity and competitiveness of local suppliers to help businesses find reliable partners for their supply chain needs. - Open Communication Channels
Constant communication helps in all areas of an organization, especially in enforcing proper feedback and improvements to the programs. Regular interaction between government entities and private businesses ensures that both parties are always aligned.
- Incentives for Training and Hiring
By engaging in active collaboration with these entities, businesses can contribute to and benefit from a robust, self-sufficient economy that aligns with national goals.
Obtaining an ICV certificate requires companies to submit audited financial statements that confirm compliance with the program’s requirements. At BLZ, we provide comprehensive support throughout this process:
- Pre-Audit Preparation: Our team ensures that your financial statements are compliant and ready for ICV submission.
- ICV Regulation Guidance: We work closely with companies to help them understand and adhere to ICV regulations.
- Long-Term Support: Our ongoing assistance ensures your company remains ICV-compliant, benefiting from the program’s incentives as your business grows.
Contact BLZ for ICV Support
The ICV certification is a powerful tool for growth, giving your business access to lucrative contracts and positioning it as a key player in the UAE’s economic future. At BLZ, we understand the intricacies of this process and are here to guide you every step of the way, from pre-audit preparations to navigating complex compliance requirements. Reach out to us today to learn how we can help your business thrive under the ICV Program and make a lasting impact on the UAE economy.