ICV Score in UAE: Meaning, Calculation, and How to Improve It

Introduction

In the United Arab Emirates (UAE), the concept of In-Country Value (ICV) score has become a crucial benchmark for businesses aiming to participate in government and semi-government contracts. Introduced as part of the UAE’s economic diversification strategy, the ICV program evaluates how much a company contributes to the local economy through procurement, employment, and investments.

For companies operating in the UAE, maintaining a competitive ICV score is not just a compliance measure—it is a business necessity. A higher score gives organizations an advantage in tenders, demonstrating their commitment to supporting the UAE’s sustainable growth.

What is an ICV Score in the UAE?

An ICV score is a percentage-based measure that reflects how much of a company’s spending and operations contribute directly to the UAE economy. It covers factors such as:

• The percentage of goods and services sourced locally.
  
• The number of Emirati nationals employed within the organization.
  
• Investments in local assets and manufacturing.
  
• Expenditure on training, development, and social responsibility initiatives. 

Essentially, the ICV score answers the question: How much value does this company add to the UAE economy beyond just doing business?

Why is the ICV Score Important?

The ICV program is aligned with the UAE’s long-term vision to reduce dependency on oil and build a diversified, knowledge-driven economy. Companies with high ICV scores enjoy several advantages, such as:

• Greater eligibility to bid on government and semi-government tenders.
  
• Preferential treatment in procurement decisions.
  
• Enhanced reputation as a partner committed to local development.
  
• Increased trust among stakeholders and clients. 

Without a valid and competitive ICV score, many businesses may find themselves excluded from lucrative opportunities in the UAE.

What is a Good ICV Score in the UAE?

A “good” ICV score depends on the industry and the company’s scale of operations. Generally, a higher percentage reflects stronger local engagement. While there is no fixed number that qualifies as “good” across all industries, companies should aim for:

• Above 40% for strong competitiveness.
  
• 30% to 40% as moderate but acceptable.
  
• Below 30% often considered weak and in need of improvement.
  

Ultimately, the higher your ICV score, the greater your chances of securing government contracts.

How is the ICV Score Calculated in Dubai, UAE?

The calculation of an ICV score follows a structured formula developed by the UAE Ministry of Industry and Advanced Technology (MoIAT). The score is derived from audited financial statements and covers several parameters, including:

1. Local Procurement – Spending on UAE-based suppliers and manufacturers.
   
2. Manufacturing Contribution – Value created through local production facilities.
   
3. Emiratisation – Proportion of UAE nationals employed in the company.
   
4. Expatriate Expenditure – Salaries paid to expatriates residing in the UAE.
   
5. Investment in Assets – Capital spent on factories, offices, or other UAE-based infrastructure.
   
6. Training and Development – Expenditure on training UAE nationals and workforce upskilling.
   

Each factor contributes to the final percentage, giving a holistic measure of the company’s impact on the UAE economy.

How to Check Your ICV Score in the UAE?

To verify your ICV score, companies must go through a certification process overseen by approved ICV certifying bodies. The steps typically include:

1. Preparation of Audited Financial Statements – Ensure the latest financial records comply with UAE accounting standards.
   
2. Submission to Certifying Body – Apply through one of the authorized firms accredited by MoIAT.
   
3. Review and Verification – The certifier assesses procurement, employment, and investments based on official documentation.
   
4. Issuance of Certificate – Once verified, an official ICV certificate with the calculated score is issued.
   

This certificate remains valid for a specific period (usually 14 months from the financial statement date).

What is ICV in UAE?

The term ICV stands for In-Country Value. It is not just a score but a comprehensive program aimed at enhancing local participation in the economy. Through ICV, the UAE seeks to:

• Boost industrial growth and local manufacturing.
  
• Encourage companies to hire and train UAE nationals.
  
• Promote investment in infrastructure and long-term economic sustainability.
  
• Increase reliance on UAE-based suppliers and service providers. 

What is an ICV Score and How to Improve It?

Improving your ICV score requires a strategic approach. Companies can adopt several measures, such as:

• Increase Local Procurement: Source raw materials, equipment, and services from UAE suppliers instead of international vendors.
  
• Hire Emiratis: Invest in Emiratisation by employing UAE nationals in skilled positions.
  
• Invest Locally: Build or expand manufacturing facilities, offices, and warehouses within the UAE.
  
• Develop Workforce Training: Allocate budgets for training UAE citizens and enhancing employee skills.
  
• Engage in Social Responsibility: Contribute to local projects and initiatives that strengthen community development. 

By taking these steps, businesses not only improve their score but also demonstrate long-term commitment to the UAE’s economic vision.

Benefits of a High ICV Score

• Tender Advantage: Preferred status in government bids.
  
• Market Reputation: Recognition as a socially and economically responsible company.
  
• Sustainability: Alignment with UAE’s industrial and economic goals.
  
• Growth Opportunities: More partnerships and collaborations with local stakeholders.
  

Conclusion

The ICV score in the UAE is more than a compliance requirement—it is a strategic tool that helps align business operations with the country’s national vision. Companies that actively improve their score through local procurement, Emiratisation, and investments not only gain access to government contracts but also strengthen their market reputation and long-term sustainability.

Whether you are a multinational corporation or a local SME, understanding and optimizing your ICV score is essential for success in the UAE’s competitive business landscape.