The UAE’s In-Country Value (ICV) program is a powerful initiative designed to stimulate the local economy, drive Emiratization, and promote knowledge transfer. For companies operating in the construction sector, understanding and maximizing your ICV score isn’t just a regulatory requirement—it’s a critical factor for winning government contracts and achieving long-term success.

What is ICV and Why Does it Matter for Construction?

In-Country Value represents the total social and economic impact of a business on the UAE. Construction companies are assessed based on several key criteria, with the ultimate goal of rewarding those that contribute most positively to the nation’s development. A higher ICV score translates to:

• Increased Competitiveness: Improved ICV scores are often a prerequisite or heavily weighted factor when bidding on government projects.
• Enhanced Reputation: Demonstrates commitment to the UAE market and its economic growth.
• Local Partnerships: Provides incentives to develop strong networks with UAE-based suppliers and businesses.

ICV for Construction: Key Components

Let’s break down the three primary components of ICV calculations crucial for construction companies:

• Net Local Spend: This measures the percentage of your company’s expenditures on goods and services sourced from within the UAE. Prioritize local suppliers and manufacturers whenever possible.
• Emiratization: ICV rewards companies that invest in hiring, training, and developing UAE nationals. Focus on creating career paths, offering competitive salaries, and promoting Emirati talent into leadership positions.
• Expatriate Investment: This includes reinvesting company profits into the UAE economy, such as through expansion, R&D initiatives, or contributing to local social programs.

Practical Tips for Boosting Your Construction Company’s ICV Score

• Strategic Sourcing: Proactively search for competitive UAE-based suppliers of construction materials, equipment, and services. Develop relationships and explore long-term partnerships.
• Talent Development: Implement robust training programs for both existing and newly hired Emirati employees. Emphasize skills transfer and opportunities for career growth.
• Knowledge Sharing: Offer workshops, seminars, or mentorship programs to support Emiratization efforts and enhance the skills of the local construction workforce.

• In-Country Investment: Consider expanding your operations within the UAE. Establish manufacturing facilities, R&D centers, or support local initiatives that boost the overall economy.
• ICV Certification: Obtain an official ICV certificate from an accredited body. This demonstrates your commitment and gives you a significant advantage in the bidding process.

Conclusion

Navigating ICV requirements may seem complex, but it offers a significant path toward securing lucrative contracts and sustainable growth for your construction business. By proactively aligning your operations with ICV principles, you can gain a competitive edge, contribute to the UAE’s vision, and position your company for long-term success.

Is your construction company ready to maximize its ICV potential? Contact us for a comprehensive ICV assessment and customized strategies to enhance your score.