The UAE continues to strengthen its commitment to sustainability, with the Ministry of Industry and Advanced Technology (MoIAT) introducing a bonus system for In-Country Value (ICV) points. Under the new initiative, companies adopting sustainable practices can earn up to three additional ICV points, reinforcing the nation’s goal of fostering an eco-friendly industrial sector.
What is the ICV Program?
The ICV program is designed to boost local economic growth by encouraging businesses to invest in the UAE’s economy. Companies that prioritize local procurement, workforce development, and now, sustainability, are rewarded with higher ICV scores, which enhance their competitiveness in government and semi-government contracts.
The Green ICV Initiative
With the Green ICV initiative, companies integrating sustainable practices—such as reducing emissions, improving energy efficiency, and adopting eco-friendly manufacturing—will qualify for bonus ICV points. This initiative aligns with the UAE’s Net Zero 2050 strategy, aiming to make businesses more responsible towards the environment.
How Businesses Can Benefit
By earning additional ICV points, companies can enhance their chances of securing contracts from government and major private sector entities. Sustainable practices like investing in renewable energy, waste reduction, and carbon offset programs now provide financial and reputational advantages.
Beyond ICV: Other ESG Practices in the UAE
Sustainability is not just about ICV scoring. Businesses operating in the UAE are also expected to comply with the Economic Substance Regulations (ESR). This includes ESR filing, ensuring that businesses engaged in relevant activities meet local substance requirements. ESR compliance, along with ICV sustainability initiatives, strengthens the UAE’s regulatory framework and encourages ethical business practices.
The Future of Sustainable Business in the UAE
The MoIAT’s bonus ICV system is a major step in integrating sustainability into corporate strategies. As the UAE positions itself as a leader in green initiatives, companies that take early action will gain a competitive edge in the market.
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