What is ICV Certification process and how is it executed?

In Qatar, businesses looking to participate in government tenders or contracts are required to obtain an ICV (In-Country Value) certification. This certification is intended to promote economic development within Qatar by encouraging businesses to increase their local investments, create job opportunities for Qatari citizens, and transfer knowledge and technology to local entities. In this article, we will explore what ICV certification is, its significance, and how the process is executed.

ICV certification is a mandatory requirement for businesses looking to participate in government tenders in Qatar. It measures the local value-add generated by a company through its operations in the country. The certification process is executed by the Qatar Development Bank (QDB) and involves assessing a company's local operations, supply chain, and investments to determine its local value-add.

How can we get ICV certification in Qatar? The ICV certification process involves four main steps. The first step is registration, where a company must register on the QDB's ICV online portal. The second step is data submission, where the company must provide financial and non-financial information related to its local operations and investments. The third step is validation, where the QDB validates the information provided by the company through site visits, interviews, and document reviews. The final step is certification, where the QDB issues the ICV certification to the company if it meets the required local value-add threshold.

To calculate the local value-add, the QDB uses a formula that takes into account the company's local spending, local taxes, local payroll, and local investments. Local spending includes the amount spent on goods and services procured from Qatari companies, while local taxes include taxes paid to the Qatari government. Local payroll includes the salaries and wages paid to Qatari employees, while local investments include the company's investments in Qatar such as research and development, training, and technology transfer.

The significance of ICV certification is that it encourages businesses to invest in the local economy, create jobs for Qatari citizens, and transfer knowledge and technology to local entities. This, in turn, promotes economic development and diversification, which is a key objective of Qatar's National Vision 2030.

In conclusion, ICV certification is a mandatory requirement for businesses looking to participate in government tenders in Qatar. The certification process involves registering on the QDB's ICV online portal, submitting data related to local operations and investments, validating the information provided, and receiving the ICV certification if the required local value-add threshold is met. ICV certification is significant because it promotes economic development and diversification by encouraging businesses to invest in the local economy, create jobs for Qatari citizens, and transfer knowledge and technology to local entities.