In Qatar, economic diversification and localization of industries are pivotal goals in line with the Qatar National Vision 2030. One of the essential tools for achieving these objectives is the In-Country Value Qatar (ICV) certification. Understanding ICV certification is crucial for businesses operating in Qatar as it directly impacts their ability to participate in government contracts and collaborations. In this article, we will delve into the intricacies of ICV certification in Qatar and its significance.
What Is ICV Certification?
ICV, short for In-Country Value, is a system devised to measure the extent to which a company’s operations contribute to the development of the local economy in Qatar. It assesses the value added within the country by a business and its suppliers, promoting economic growth and sustainable development.
Key Components of ICV Certification
- Local Spend: This component assesses how much an organization spends on goods and services procured locally within Qatar. The higher the percentage of local spending, the better the ICV score.
- Local Investment: ICV certification takes into account the company’s investments in Qatar, including capital expenditures, research and development, and infrastructure development.
- Local Manpower: The number of Qatari employees and their role within the organization is an essential factor. Companies with a higher percentage of Qatari nationals in their workforce typically score higher.
- Exports: While promoting local growth, ICV also considers a company’s export activities and the income generated from international markets.
Significance of ICV Certification
- Access to Government Contracts: ICV certification is often a prerequisite for companies looking to bid on government contracts in Qatar. Higher ICV scores increase the chances of winning these contracts.
- Strategic Partnerships: Many private sector companies in Qatar prefer to collaborate with ICV-certified businesses as it aligns with the country’s economic development goals.
- Compliance with Regulations: ICV certification ensures that businesses operate in line with Qatar’s economic development strategies and regulatory requirements.
- Economic Growth: By encouraging local spending, investment, and employment, ICV certification plays a crucial role in Qatar’s economic diversification and development.
Steps to Obtain ICV Certification
- Self-Assessment: Companies should begin by assessing their current ICV performance to identify areas for improvement.
- Data Collection: Gather all relevant data regarding local spending, investments, local workforce, and exports.
- ICV Assessment: Submit your data to a certified ICV assessment body for verification and certification.
- Continuous Improvement: Maintain and improve your ICV score through ongoing efforts to enhance local contributions.
In conclusion, understanding ICV certification is essential for businesses operating in Qatar. It is not just a regulatory requirement but also a strategic opportunity to align with the nation’s economic development goals, gain access to government contracts, and foster partnerships with like-minded entities. By promoting local spending, investment, and employment, ICV certification contributes significantly to Qatar’s progress toward economic diversification and self-sufficiency, ultimately benefiting both businesses and the nation as a whole.