ICV Certification in Qatar

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In-Country Value (ICV) certificate is an important tool for those looking to do business in Qatar. They are required to adhere to the requirements of the ICV program in order to obtain an ICV Certification in Qatar, especially entities that are involved in government projects or working with state-owned organizations. This initiative was taken by the Qatar government to promote local development, increase domestic production, and encourage economic diversification.

Through the process of ICV Certification, the authorities evaluate the company’s contribution to the economy through local procurement, employment, and investments. This guide will walk you through the process of obtaining an ICV certificate Qatar, the criteria, and other essentials to ensure compliance with the ICV policies.

In-Country Value (ICV): Overview

In-Country Value (ICV) is a program driven by the Qatar government to boost local economic growth through the promotion of local goods, services, and industries. Through this initiative, the government aims to increase the involvement of local suppliers and service providers in large-scale projects so that companies make the most of local resources, generate employment opportunities for Qatar citizens, and invest in the infrastructure and human capital of the country.

Through the ICV programs, companies are assessed based on their contribution to the local economy, such as local procurement, jobs provided to Qataris, and capital investments made within the country. Businesses that score higher on ICV are awarded contracts, thereby prompting other organizations to adopt more ethical practices and support the national development strategy.

The primary objectives of the ICV initiative are:-

• Diversification of Qatar’s GDP by sourcing more goods and services within the country.
• Strategic considerations for specific categories of businesses.
• Promote the development of local industries and support the growth of the private sector.
• Create job opportunities for Qatari nationals and residents.
• Encourage the development of local suppliers by urging investment from companies.

ICV Certification in Qatar

Qatar encourages businesses to prioritize local suppliers, workforce, and resources and promotes local economic development through the ICV Certification. The key aspects of this program are as follows:-

• Boosts local resources – ICV certification in Qatar ensures that companies use local suppliers and labor, which would help enhance the development of local industries.
• Business opportunities – Companies with higher ICV scores can bid for government contracts or projects with state-owned enterprises.
• Key metrics – Through the ICV score, the authorities evaluate the extent of local resources utilized by the company, the number of employment given to Qatari nationals, investments made in the local economy, and initiatives taken for corporate social responsibility.
• Encouragement for SMEs – The ICV Certificate Qatar scheme encourages MNCs and large corporations to collaborate with local small and medium-sized enterprises (SMEs).

Thus, the ICV Certification program aims to promote an ecologically diversified economy by developing local industries and reducing dependence on imports, thereby aligning with Qatar’s Vision 2030.

ICV Certification in Qatar: Essential Stages of the Procurement Process

The procurement process in Qatar’s ICV certification program impacts supplier selection, contract accomplishment, and compliance with national economic goals.

Supplier onboarding:

Suppliers are required to provide their ICV certificates during registration and update their ICV annually.

Tendering:

While selecting winning bidders, the ICV certificate plays a pivotal part as suppliers are assessed based on their ICV scores.

Contract review:

During contract execution, the following reviews are conducted:-

• The mid-contract review – to ensure compliance and progress
• The final review – to get the contract signed by a pre-approved certifier

Thus, the entire bidding and evaluation process focuses on the technical, financial, and ICV evaluation criteria, thus ensuring adherence to the requirements that are crucial in the procurement process.

For any ICV-related inquiries, feel free to connect with the expert team of Shuraa Tax.

Steps to get an ICV Certificate Qatar

The businesses must follow the below steps to obtain ICV Certification in Qatar:-

Understand ICV Requirements

Companies that are aiming to participate in bids for specific projects or sectors, including government-owned entities, should consider obtaining an ICV certificate in Qatar. However, the assessment for this certification is done on the basis of local goods and services procurement, local labor employment, training and development, and investment in the local market made by the applicant company. This assessment measures the extent of value generated by the company within Qatar.

Gather Required Documents

Before applying for the certificate, the company must ensure that they have the necessary documents required for the process, such as business financial records, tax information, employment data, and local procurement details.

Register on the ICV Portal

In order to register, companies must access the relevant ICV portal, managed by the Ministry of Commerce and Industry or any authorized body that oversees the ICV program in Qatar.

Submit Application

Fill out the registration forms provided in the portal and share accurate data related to local economic contributions made by the company. Once completed, the company must submit the form along with the gathered documents.

Audit and Evaluation

Upon submission, the application is reviewed by the relevant authorities and an audit is conducted to assess the company’s contribution as claimed in the registration form.

Receive the ICV Certificate

Upon successful evaluation, the ICV certificate is issued to the company which they can further use to partake in projects that prioritize local content. This certificate typically stays valid for one year from the date of issue.

Cost of ICV Certification in Qatar

The cost of an ICV certificate can vary depending on factors like the issuing authority and additional services availed by the applicant company. Hence, it’s best to check with the experts of Shuraa tax for the most accurate and updated pricing.

Benefits of ICV Certification in Qatar

An ICV Certificate Qatar holds many benefits for companies, such as –

• Increased competitiveness: The government tends to provide contracts and projects of state-owned entities and public sectors to companies that have a high ICV score.
• Alignment with Qatar National Vision 2030 – Obtaining an ICV certificate demonstrates that the company aligns with Qatar’s long-term vision of diversifying the economy and developing the local workforce. This makes the company more appealing to partners, investors, and shareholders.
• Stronger Relationships with Local Companies – The framework of the In-Country Value program in Qatar encourages companies to build strong partnerships with local entities including suppliers, service providers, and local talent. This fosters long-term relationships that can bring in more business opportunities for the company within the country.
• CSR and Reputation – The ICV Certificate holders in Qatar are considered significant contributors to the national economy and supporters of local development. This not only enhances their reputation but also builds their brand image within Qatar and the GCC region.
• Compliance and Recognition – An ICV Certificate exhibits the company’s compliance with national guidelines and regulations, thereby giving them credibility and recognition in the market. This is a significant requirement for organizations bidding on major projects.
• Long-Term Sustainability – Companies can create more sustainable operations within the country by integrating local content into their business model. This reduces their dependency on imports and fosters a steady, locally sourced supply chain.

This is how Shuraa Tax can help

Shuraa Tax Consultants and Accountants specialize in a broad range of services, including Accounting and Bookkeeping, VAT Consultancy, Corporate Tax, Excise Tax Services, ESR Services, and more.

Contact Shuraa today! Email at info@shuraatax.com.

About Post Author

Carolyn K. Massey

Massey@westcostmarketing.com

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