Regardless of which sector it operates in, the ICV Program will significantly impact any sizable entity’s policy towards investment, procurement, talent development and structuring. At KPMG, we view ICV as an ecosystem that unlocks value by enhancing, accelerating and automating decisions that drive growth and contribute to the local economy. International and regional businesses will need to define cohesive strategies to remain sustainably competitive as effectively implementing these strategies takes time.
“The In-Country Value Program (ICV) aims to improve the productivity and sustainability of the UAE’s industrial sector. It also intends to boost the contribution of local industries to national GDP while enhancing the role of local companies to the country’s socio-economic development.” – Ministry of Industry and Advanced Technology
Areas of impact
- Procurement - Greater emphasis on local sourcing
- Supply chain - Focus on localization of supply chains
- Hiring - Enhanced job opportunities for local talent in the private sector
- Manufacturing base - Emphasis on “Make it in the Emirates”
- Subcontracting - Increase third-party spend within the UAE
- Asset base/investment - More private sector investments within the UAE
KPMG’s view on the evolution of ICV
Near term focus
(one-two years)
- Enhancing the ICV score for government entities
- ICV metrics as evaluation criteria for procurement
- Development plans to improve supplier scores
- Suppliers/sub-contractors to provide ICV credentials for all sourcing activities
Near term focus
(three-five years)
- Minimum ICV score targets to be defined for all government entities
- ICV to be a defining criteria for all procurement
- Increased Emiratization in the private sector
Long-term focus
(five+ years)
- Minimum ICV score to be defined across the government and private sector
- ICV metrics to be minimum qualifying criteria for all major contracts
- Increased local presence across all industries
How we can help
| Focus areas | Description of activities | Benefits |
| Strategy development | Strategy: Help in developing an ICV strategy focused on improving the overall ICV score | Identified categories for ICV spend optimization |
| Capability development and adoption | Building capabilities: Help develop an comprehensive action plan to build capabilities for identified functional areas | Enhanced capabilities to improve the ICV score |
| Organization and governance design | Design and setup: Help setup an organization and governance structure to support the ICV Program | A clearly defined governance and reporting structure |
| Policy and procedure development | Process definition: Help develop tailored ICV policy, procedure and process flows aligned with the organization’s vision | Streamlined operations aligned to policy and procedures |
| Performance development | Performance reporting: Help define KPIs to track ICV performance and develop a roadmap to increase the maturity level of operations | Insight to performance to report and track progress |
| Operational support | Execution support: Help in the execution process of implementing the ICV strategy | A rapid realization of benefits leveraging best practices |
Our value proposition
- In-depth understanding
Having supported the launch of the ICV Program in the country from its initial stage, we possess an in-depth understanding of the ICV vision
- Extensive ICV experience
We bring to the table a healthy mix of Advisory and Audit experience in the ICV Program
- Experienced local team
We have a strong UAE-based team having experience in driving localization/ICV projects for leading organizations
- Thought Leadership
We have small and medium-sized enterprises (SMEs) with extensive industry experience in the ICV space and have developed a whitepaper on ICV
- Execution speed and quality
Our project delivery team has advanced skills on implementing projects across the ICV value chain
- KPMG accelerators
Our execution team will be supported by the KPMG Global Procurement and Supply Chain Advisory and have access to best-in-class localization practices
