What SMEs Need to Know About the UAE’s In-Country Value Rules

Small and medium-sized businesses across the UAE are realizing that government procurement now depends on more than pricing, technical capability, or proposal quality. As the UAE accelerates its diversification and industrial development goals, the National In-Country Value (ICV) Program has become a central factor in evaluating suppliers. Understanding how ICV works is now essential for SMEs that want to compete effectively in public and semi-government tenders.

The aim of the ICV Program is evident: it aims to promote the UAE economy by encouraging companies that make their contribution to the UAE economy, either by hiring Emiratis, developing a local supply chain, manufacturing in the region, and adding value to the country. In the case of SMEs, there are new opportunities to compete based on their economic contribution, apart from their size.

Before participating in major tenders, SMEs need to understand how ICV scoring works, what documentation is required, and how certification impacts eligibility. Below is a clear breakdown of everything that matters for growing businesses.

Why the ICV Framework Matters for SMEs Competing in the UAE

The ICV program influences a company’s access to government contracts, semi-government tenders, and procurement opportunities across several strategic sectors. A higher ICV score often improves a firm’s competitiveness because buyers increasingly prioritize partners who contribute directly to the UAE’s economic sustainability.

The program measures several factors:

• Local spending and procurement
• Emirati employment
• In-country manufacturing
• Training and talent development
• Investment retained within the UAE

When SMEs understand what is being measured, they can plan ahead—sometimes shifting sourcing strategies or strengthening documentation—to improve future eligibility. And this brings us to the most important requirement companies often ask about.

How ICV Certification Works and Why SMEs Need It

Most SMEs first encounter the ICV Program when applying for a tender that requires an in country value certificate. The certificate assigns an official score based on audited financials, operational data, and local economic contributions. One such advisory partner that helps businesses navigate this process is MBG Corporate Services, which supports companies in preparing compliant submissions under the National ICV Program.

The certification reflects a business’s existing financial practices rather than changing operations overnight. SMEs often identify areas for improvement upon reviewing their scores, such as local spending, which can enhance their ratings. Holding the certificate prepares businesses for tender cycles, as many entities require it during pre-qualification, helping them avoid last-minute delays that might affect shortlisting.

The process demands accurate, audited financials and supporting documents to validate the operational footprint. While it may seem daunting, the system fosters fairness by using uniform evaluation criteria for all participants.

Key Benefits SMEs Experience After Engaging With ICV Requirements

Once certified, SMEs frequently see significant advantages:

• Increased competitiveness in federal and semi-government tenders
• Improved trust and visibility among procurement teams
• Greater appeal as subcontractors to large enterprises that need strong ICV partners
• Stronger local supply chain relationships
• Better operational planning across procurement, hiring, and training

For many SMEs, the ICV framework becomes a strategic growth tool, guiding long-term decisions and improving organizational discipline.

How the Rules Shape Supplier Decisions and Long-Term Growth

SMEs should recognize the impact of the ICV program on purchasing behavior in the UAE. Buyers now assess suppliers not just on cost efficiency but also on their ability to bolster national capabilities. This change opens up opportunities for SMEs offering local expertise and services. 

The program encourages collaboration, as larger companies look for subcontractors that enhance their ICV scores. SMEs with strong documentation and transparency can become appealing partners, especially in developing supply chains. 

For businesses aiming to expand, the ICV program serves as a roadmap, highlighting key operational areas for improvement that can create value both for the company and the market.

Easy Steps For ICV Compliance Preparation

The process does not need to be daunting. In fact, most SMEs can easily identify with a few key steps:

• Reviewing current procurement trends to uncover potential for local sourcing
• Analyzing investments in staff and training that are consistent with long-term commitments
• Preparing financial statements and organizing documents at the start of the fiscal year
• Planning for future tenders and knowing what ICV requirements they entail

Having these steps in place allows companies to approach the process of certification with a clear head rather than in a reactive manner. Over time, they also create internal habits that support stronger operational performance.

SMEs that treat the ICV program as a strategic tool rather than a regulatory hurdle typically see better results in both tender competitiveness and organizational clarity.

Conclusion

The UAE’s In-Country Value rules have reshaped how companies large and small engage with the national economy. For SMEs, it is extremely important to know about the initiative not only as part of adhering to a set of rules but also as a means to access significant sourcing deals.

The scheme incentivizes and rewards sincere economic engagement, transparency, and sustained commitment. By aligning themselves with such expectations, SMEs can develop higher resilience, eligibility for tenders, and engagement with the ever-changing business environment in the UAE.