In-Country Value in UAE procurement: how the formula scores an ICT vendor, and what changed in 2025–26.
The published MoIAT formula, a worked example for a technology services vendor, and the certification changes that bid teams are still under-modelling.
The UAE's National In-Country Value (ICV) programme has moved from an Abu Dhabi oil-and-gas procurement tool to a national instrument applied across federal procurement. For a technology vendor, ICV is now a scoring component that can decide a contested tender between technically comparable bids. Yet many bid teams still treat the ICV certificate as a compliance document produced after the proposal is written. This briefing sets out the formula exactly as the Ministry publishes it, works a transparent example for an ICT services vendor under two delivery structures (an illustrative score of about 11% against about 59% for the same technical proposal), and lists the 2025–26 changes and current rules — stand-alone audited financial statements for the certified entity, the Green ICV bonus, per-licence certificates and default scoring for uncertified suppliers — that vendors should be modelling in their pricing.
- 01
ICV is a published formula, not a multiplier. For service providers the score is the weighted sum of third-party spend (50%), investment (25%), Emiratization (15%) and expatriate contribution (10%), plus an ICV bonus of up to 5% and a sustainability bonus of up to 3%; goods manufacturers substitute manufacturing cost for third-party spend and can add a combined advanced-technology and sustainability bonus of up to 6% 12.
- 02
The third-party spend term cascades through the supply chain: purchases count at the supplier's own ICV score, so a vendor's score is partly a function of whom it buys from. Uncertified mainland suppliers are scored at a default 10% and offshore or undocumented suppliers at zero 16.
- 03
Same vendor, same technical proposal, different structure: in the worked example an offshore-heavy delivery model scores about 11% and an in-country model about 59% (illustrative, assumptions stated). Where ICV carries a material weight in the evaluation, the technical score cannot recover that gap.
- 04
The 2025–26 changes and current rules raise the bar on evidence: certificates for financial years ending after 31 December 2024 require stand-alone audited financial statements for the entity being certified, each trade licence needs its own certificate, certificates are valid 14 months, and a Green ICV bonus rewards documented sustainability practices 4567.
- 05
ICV now sits inside federal procurement. The Ministry of Industry and Advanced Technology and the Ministry of Finance applied the programme to the procurement policies of all 45 federal entities, alongside the entity-level programmes of ADNOC and other national companies that pioneered it 3.
From an oil-company programme to a national instrument
In-Country Value began as ADNOC's supplier programme in 2018 and was elevated to the national level in 2021 under the Ministry of Industry and Advanced Technology (MoIAT), which sets the formula, accredits the certifying bodies and publishes the supplier template and guidelines 12. The programme's stated objectives are Emiratization, GDP diversification and supply-chain resilience, achieved by redirecting government and national-company procurement towards expenditure that stays in the country 2. The Ministry of Finance subsequently embedded the ICV mechanism in federal procurement policy so that the national value-added of a supplier's spending is calculated across all 45 federal government entities, including ministries and federal authorities 3. Entity-level participants such as ADNOC, Aldar and Etihad Rail continue to run ICV in their own tenders 6.
The practical effect is that a technology vendor bidding into the UAE public sector now meets ICV in three places: as a mandatory certificate submitted with the bid, as a score that enters the evaluation alongside technical and commercial scores, and as an input to the ICV score of every ICV-certified client and prime contractor that buys from it. A supplier without a certificate is scored at zero by the participating entity 7.
The formula, as published
The Ministry publishes two formulae, one for goods manufacturers and one for service providers; the second applies to most technology vendors. Each component is a ratio drawn from the supplier's audited financial statements, multiplied by a weight. Exhibit 1 reproduces the structure. Two features of the service-provider formula deserve attention. The third-party spend term counts purchases at the ICV score of the supplier they were made from, which means a vendor's own score inherits the certification status of its subcontractors and distributors. And expatriate salary cost is counted at 60% in the same term, so in-country delivery with expatriate staff still earns credit, while offshore delivery earns none 12.
| Component | Service provider weight | Goods manufacturer weight | Ratio |
|---|---|---|---|
| Third-party spend (service providers) / Manufacturing cost (manufacturers) | 50% | 50% | ((Value of purchase × ICV of supplier) + Emirati cost + 60% of expatriate cost) ÷ total cost; manufacturers use manufacturing cost incurred in the UAE in place of weighted purchases |
| Investment | 25% | 25% | Net book value of assets in the UAE ÷ net book value of total assets |
| Emiratization | 15% | 15% | Emirati salary, training and benefits (capped at AED 200,000 per employee) scored on headcount tiers |
| Expatriate contribution | 10% | 10% | Expatriate salary cost borne in the UAE, as published in the template |
| ICV bonus | up to 5% | up to 5% | Revenue from outside the UAE (excluding re-exports) ÷ total revenue; Emirati headcount growth; investment growth |
| Sustainability / advanced-technology bonus | up to 3% | up to 6% | Green ICV criteria; manufacturers may earn up to 5% of the bonus through the Industrial Technology Transformation Index |
A worked example for an ICT services vendor
Exhibit 2 applies the service-provider formula to one vendor with an annual cost base of AED 100 million and total assets with a net book value of AED 20 million, under two delivery structures. Structure A delivers from an offshore centre with a thin UAE presence; Structure B delivers in-country with Emirati hires, certified local suppliers and UAE-based assets. The technical proposal is identical. The Emiratization and ICV-bonus components are simplified to illustrative point allocations because their official sub-rules depend on Emirati headcount tiers and year-on-year growth that vary by company; the certifying body applies the full template 12.
| Input or component | Structure A — offshore-heavy | Structure B — in-country | How it is scored |
|---|---|---|---|
| Total annual cost | 100 | 100 | Denominator of the third-party spend term |
| Purchases from offshore or undocumented suppliers (ICV 0%) | 55 | 0 | Counted at 0% |
| Purchases from certified UAE suppliers (average ICV 45%) | 0 | 30 | Counted at 45% → 13.5 |
| Emirati staff cost borne by the UAE entity | 0 | 12 | Counted at 100% |
| Expatriate staff cost borne by the UAE entity | 25 | 45 | Counted at 60% → 15.0 (A), 27.0 (B) |
| Offshore delivery and other cost | 20 | 13 | Counted at 0% |
| Third-party spend term (50% weight) | 15.0% × 50% = 7.5 | 52.5% × 50% = 26.3 | In-country value ÷ total cost, times weight |
| Investment: UAE net book value ÷ total net book value (25% weight) | 1 ÷ 20 = 5% → 1.3 | 14 ÷ 20 = 70% → 17.5 | Assets held by the UAE entity |
| Emiratization (15% weight) | 0.0 | 10.0 (assumed) | Illustrative allocation; official sub-rules use headcount tiers and a AED 200,000 cap |
| Expatriate contribution (10% weight) | 25% × 10% = 2.5 | 45% × 10% = 4.5 | Simplified as UAE expatriate cost ÷ total cost |
| ICV bonus (up to 5%) | 0.0 | 0.5 (assumed) | Illustrative; depends on export revenue and growth |
| Indicative ICV score | ≈ 11% | ≈ 59% | Sum of weighted components |
The gap between about 11% and about 59% is the difference between a vendor that can be dropped for ICV reasons and one that leads on them, with no change to what is being proposed. The lever with the largest effect is not Emirati hiring but the structure of third-party spend and in-country staff cost, which together carry half the weight; the second largest is the investment term, which rewards UAE-based assets as a share of the vendor's total assets and therefore favours vendors whose UAE entity owns its own equipment, premises and capitalised software rather than borrowing the group's 1.
What changed in 2025–26, and what applies now
- Stand-alone audited financial statements. For ICV certificates covering financial years ending after 31 December 2024, the entity being certified must present its own audited financial statements; a UAE branch of a foreign group can no longer be certified on consolidated group accounts 4.
- Green ICV bonus. The Ministry adopted Green ICV criteria within the national programme, allowing suppliers to earn bonus points for documented commitments on sustainability, water management, circularity and emissions reduction, in line with the national industrial strategy and the Net Zero 2050 initiative 5.
- Advanced-technology bonus for manufacturers. Goods manufacturers can add up to 5% to their ICV score, within the combined sustainability and advanced-technology bonus of up to 6%, by participating in the Industrial Technology Transformation Index (ITTI) 1.
- Per-licence certification and validity. A group with several trade licences needs a separate certificate for each; certificates are valid for 14 months from issue, and recertification during the validity period does not extend it 67.
- Default scoring for uncertified suppliers. Participating entities score suppliers without a certificate at zero; in a vendor's own third-party spend calculation, uncertified mainland suppliers are scored at 10% and offshore suppliers at zero 67.
- Federal procurement coverage. ICV is applied in the procurement policies of all 45 federal government entities through the Ministry of Finance's digital procurement policy 3.
Implications
For vendors. Certify every UAE licence early and on the entity's own audited accounts; the 14-month clock and the stand-alone-statements rule together mean that a certificate cannot be produced at bid time from group accounts. Treat supplier ICV as procurement data: ask subcontractors and distributors for their certificates and prefer certified UAE suppliers where the technical proposal allows. Put in-country delivery staff on the UAE entity's payroll, because 60% of expatriate cost and 100% of Emirati cost count only when the UAE entity bears them. Hold UAE-used assets in the UAE entity. Model the ICV score in the bid pricing, not after it 1467.
For buyers. Publish the ICV weight and the scoring method in the tender so that bids are structured for in-country value from the start; ask bidders for the ICV certificates of their principal subcontractors as well as their own; and recognise that Emirati hiring in a vendor's delivery organisation, not only its sales team, moves the vendor's ICV score and can support the buyer's own Emiratization outcomes 18.
Desk research completed 7 October 2026. The formula and weights are taken from the Ministry of Industry and Advanced Technology's ICV Formula page and ICV Supplier Certification Guidelines; federal procurement coverage from the Ministry of Finance and MoIAT announcement as reported by Gulf News; the 2025 stand-alone financial statements rule from Grant Thornton UAE's programme note; the Green ICV bonus from the Ministry's announcement as reported by SME10x; certificate validity, per-licence certification and default scoring from certifying-body and legal guidance. The worked example is our own computation on the published formula with stated assumptions.
- The Emiratization and bonus components are scored by the certifying body on sub-rules (headcount tiers, cost caps, growth measures) that this briefing simplifies; the worked example states where it does so.
- ICV weights in tender evaluations are set by each participating entity and tender; this briefing does not assert a single evaluation weight.
- Programme parameters are updated by the Ministry from time to time; vendors should confirm the current template and guidelines on the MoIAT ICV platform before certification.
- 01Ministry of Industry and Advanced Technology (MoIAT), 'ICV Formula' and 'Information for Suppliers': goods-manufacturer and service-provider formulae and weights (50 / 25 / 15 / 10 / 5, with sustainability and advanced-technology bonuses). Accessed 7 October 2026. https://www.moiat.gov.ae/en/programs/icv-formula
- 02MoIAT, 'ICV Supplier Certification Guidelines' (National ICV Program; calculation formula sections on manufacturing cost, third-party cost, investment, Emiratization, expatriate contribution, revenue and bonus), published on u.ae. https://u.ae/-/media/Documents-2023/ICV-supplier-certification-Guidelines--MOIAT-(1).pdf
- 03Gulf News, 'UAE implements in-country value program to boost economy' — MoIAT and the Ministry of Finance apply the ICV programme to the procurement policies of all 45 federal government entities. https://gulfnews.com/amp/story/business%2Fuae-implements-in-country-value-program-to-boost-economy-1.84543732
- 04Grant Thornton UAE, 'The National In-Country Value Program (ICV)' — effective 1 January 2025, ICV certificates for financial years ending after 31 December 2024 require stand-alone audited financial statements specific to the entity being certified. https://www.grantthornton.ae/insights/articles2/the-national-in-country-value-program-icv/
- 05SME10x, 'Sustainability Pays Off: UAE's Green ICV Bonus Enhances Business Competitiveness' — MoIAT adoption of Green ICV criteria and bonus within the National ICV Program. https://www.sme10x.com/technology/sustainability-pays-off-uaes-green-icv-bonus-enhances-business-competitiveness
- 06Kayrouz & Associates, 'UAE ICV Certification Requirements: National ICV Program' — default 10% score for uncertified UAE mainland suppliers and zero for offshore or undocumented suppliers; separate certificate per trade licence; entity-level participants. https://www.kayrouzandassociates.com/insights/uae-icv-certification-requirements-national-icv-program
- 07ATB Legal, 'ICV Certification: A guide for SMEs' — component weights, 14-month certificate validity, recertification rules, zero score for suppliers without a certificate. https://atblegal.com/blog/icv-in-country-value-certification-in-uae/
- 08UAE Government portal, Emiratisation — Ministry of Human Resources and Emiratisation targets for private-sector companies (annual increase in Emirati skilled headcount for companies with 50 or more employees, with the Nafis programme). Accessed 7 October 2026. https://u.ae/en/information-and-services/jobs/emiratisation
- ADNOC
- Abu Dhabi National Oil Company
- AED
- United Arab Emirates dirham
- GDP
- Gross domestic product
- ICT
- Information and communications technology
- ICV
- In-Country Value
- ITTI
- Industrial Technology Transformation Index
- MoIAT
- Ministry of Industry and Advanced Technology (UAE)
wesolutions Research. Desk-based analysis of the Ministry of Industry and Advanced Technology's published ICV formula and supplier guidelines, federal procurement announcements and certifying-body guidance; all figures carry an endnote.
Public.
Every exhibit in this report can be downloaded as a CSV file, with its source line, for independent re-scoring.