The ICV program has appeared as a key force in determining the economic landscape of the UAE. The ICV program was launched in 2018 by ADNOC. It is designed to localize the UAE’s supply chain and quicken the rate at which the Emirate’s GDP shall grow. The ultimate goal of this program is to reinforce Local Economies and SMEs in the UAE.
- Assisting SMEs with Government Contracts
SMEs are a prop of the UAE economy. They account for more than 90% of the UAE’s businesses and contribute meaningly to GDP. The ICV program has been predominantly valuable for SMEs. As it prioritizes the local businesses for the government procurement developments. By offering special treatment to SMEs, the ICV program allows smaller businesses to defend profitable contracts with government and semi-government entities. This change is important for the development of SMEs. It enables them to have;
- Open access to new markets
- Expand their operations
- Scale their businesses
Getting bigger contracts may lead to improved revenue. It can be invested in research and development, product upgrading, and working competence. In turn, SMEs become more modest and stronger. They also contribute to the UAE’s economic modification.
- Economic Modification
The ICV program plays a key role in enhancing economic diversification within the UAE. Factually, the UAE economy has been dependent on oil revenues, but the country’s leadership has made noteworthy steps toward differentiating into other sectors. The ICV program directly assists this goal by encouraging businesses to source goods and services from local suppliers.
The ICV initiative stimulates demand in several sectors such as industrial, logistics, technology, and service areas. These industries are now growing gradually as well as contributing to a more stable and robust economic landscape.
- Fascinating Foreign Direct Investment
The ICV program has presented the UAE with a striking endpoint for foreign direct investment. The ICV program presents a strong Picture to multinational companies about the UAE’s emphasis on building a supportable and expanded economy. Businesses looking to start or enlarge their occurrence in the region are encouraged to capitalize on local operations to line up with ICV obligations.
- Job Openings and Emirati Employment
One of the most noteworthy influences of the ICV program is the increase in employment opportunities. The ICV program encourages companies to hire locally, with an attention to engaging UAE residents. Businesses are incentivized to upsurge their Emirati workforce by generating local employment, which backs to reducing the country’s dependence on expatriate labor.
Companies are stimulated to capitalize on training and growth programs to improve the skills of their local staff. It in turn increases efficiency and lifts attractiveness on a global scale. The ICV program also fosters economic presence by focusing on Emirati employment as well as assists in building a robust connection between the UAE’s growing industries and its labor market.
- Establishing Local Supply Chains
One of the core objectives of the ICV program is to lift the expansion of local supply chains. The ICV program ensures that a superior share of revenue mingles within the UAE economy rather than flowing out of the UAE by inspiring companies to source materials and services locally. This outcome in stronger domestic supply chains. It also diminishes dependence on foreign suppliers and backs the country’s economic stability.
Conclusion
The ICV program has had a deep and optimistic impact on local economies and SMEs in the UAE. ICV is helping to shape a strong and sustainable economy by driving economic modification, opening jobs for Emiratis, allowing SMEs through government contracts, and establishing local supply chains. Also, it fascinates foreign direct investment as well as bringing new proficiency and capital into the country. If some businesses fail to understand the ICV obligations or other aspects, Farahat & Co. is the most prominent and dominant name in the UAE. Their well-capable team can help businesses to address all the issues perfectly.
