The Dubai ICV (In-Country Value) audit process is an evaluation that aims to measure the level of economic contribution made by companies operating in the UAE to the local economy. The ICV is a key component of the UAE's economic diversification efforts, as it seeks to promote the growth of local businesses and reduce dependence on oil revenues. Here are three things you need to know about the Dubai ICV audit process:
The ICV audit process is mandatory for certain companies
The ICV audit process is mandatory for companies that are registered in the UAE and have a commercial license issued by any of the UAE authorities. The companies that are required to undergo the ICV audit process include those that are seeking to participate in public tenders or bids issued by government entities in the UAE. Additionally, companies that are already doing business with government entities in the UAE may also be required to undergo the ICV audit process.
The ICV audit process evaluates four key components
The ICV audit process evaluates four key components of a company's economic contribution to the local economy. These components are as follows:
Emiratization: This refers to the company's efforts to hire and train UAE nationals.
Local purchases: This refers to the company's procurement of goods and services from local suppliers.
Investment in UAE: This refers to the company's investment in assets located in the UAE.
Corporate social responsibility: This refers to the company's efforts to contribute to the local community through social and environmental initiatives.
The ICV audit process evaluates these components using a standardized methodology that assigns a weightage to each component based on its importance to the local economy.
The ICV certificate is valid for one year
After a company has undergone the ICV audit process, it is issued an ICV certificate that is valid for one year. The ICV certificate serves as a proof of the company's economic contribution to the local economy and can be used to participate in tenders and bids issued by government entities in the UAE. It is important to note that the ICV certificate must be renewed annually, and the company must undergo a new ICV audit process to obtain a new certificate.
In conclusion, the Dubai ICV audit process is an important evaluation that measures a company's economic contribution to the local economy. Companies that are required to undergo the ICV audit process must be aware of its mandatory nature and the four key components that are evaluated. Additionally, companies must keep in mind that the ICV certificate is valid for one year and must be renewed annually through a new ICV audit process.