How to Improve ICV Score in Qatar: A Practical Guide for Companies
- Crown Accounting
- 2 days ago
- 7 min read
Improve Your ICV Score in Qatar Before Certification or Renewal
For companies participating in Qatar's Energy Sector supply chain, obtaining an ICV Certificate in Qatar is important but simply obtaining the certificate should not necessarily be the final objective.
The more important question is:
Can your company improve its ICV Score in Qatar before the next certification or renewal?
Companies often approach ICV certification only after their financial year has ended and their accounts have been audited. At that point, many of the transactions affecting the ICV Score have already taken place.
A better approach is to understand the factors influencing your score and develop an ICV improvement strategy well before certification.
Under Tawteen's current Enhanced ICV methodology, the ICV formula considers eligible local costs relative to total costs together with applicable bonus opportunities.
Therefore, procurement decisions, workforce development, supplier development, investment and other strategic business decisions can potentially influence the company's future ICV position.
This guide explains some of the key areas companies should review when looking to improve their ICV Score in Qatar.
What Is an ICV Score in Qatar?
In-Country Value, commonly known as ICV, measures the economic value generated within Qatar through a company's business activities.
The ICV Scorecard is based on the company's historical operations and latest audited financial statements and is validated by a Tawteen-approved independent ICV Certifier.
Under the current methodology, the formula broadly considers:
ICV % = Eligible Local Cost ÷ Total Cost + Bonus %
Eligible local cost is divided into several important areas:
Goods and Services
Workforce Training
Supplier Development
Investments in Fixed Assets
Companies may also qualify for additional bonus contributions based on specific strategic activities.
Understanding these components is the starting point for developing an effective ICV Score improvement strategy in Qatar.
1. Review Your Local Procurement Strategy
Procurement can have a significant influence on your ICV position.
Companies should therefore review not only how much they purchase, but also where they purchase from and the ICV contribution associated with those suppliers.
Before making significant purchasing decisions, companies can consider whether suitable goods or services are available from Qatar-based suppliers.
A structured procurement review can include:
Identifying major annual procurement categories
Reviewing local versus overseas purchases
Identifying alternative local suppliers
Checking suppliers' ICV status where relevant
Incorporating ICV considerations into procurement policies
Maintaining proper supporting documentation
This does not mean choosing suppliers solely because of ICV. Price, quality, capability, delivery and commercial considerations remain important.
The objective is to identify situations where competitive local sourcing and ICV improvement can work together.
2. Consider the Impact of ICV+ Suppliers
The introduction of ICV+ has made supplier selection particularly important for companies looking to improve their ICV Score.
Under the ICV+ policy, eligible manufacturers identified by the Ministry of Commerce and Industry (MOCI) receive enhanced ICV treatment.
An eligible manufacturer without a certified ICV Score can be granted a 50% ICV Score. Where an eligible manufacturer already has a valid certified ICV Score, it can qualify for an additional 50% to its ICV Score.
Importantly, purchases from eligible manufacturers are considered using the manufacturer's applicable ICV Score when determining the ICV contribution of the relevant expenditure.
Therefore, companies planning major purchases should consider reviewing whether suitable ICV+ eligible local manufacturers are available.
This can potentially create a win-win situation: supporting Qatar's local manufacturing sector while strengthening the purchasing company's ICV position.
3. Review Workforce Training Expenditure
Workforce development is another component companies should examine when planning to improve their ICV Score in Qatar.
Eligible expenditure relating to training activities provided to local employees can contribute to the ICV calculation.
Companies should therefore establish a structured approach to workforce development rather than treating training as an undocumented administrative expense.
This may include maintaining:
Annual training plans
Employee details
Training invoices
Attendance records
Training certificates
Details of courses and programmes
Supporting payment records
Proper documentation is particularly important because an expenditure item that cannot be adequately supported may not receive the intended treatment during certification.
4. Develop Local Suppliers
The Enhanced ICV framework also recognises expenditure associated with supplier development.
This creates an opportunity for larger businesses to look beyond simply purchasing from local suppliers and consider how they can help develop the capabilities of their Qatar-based supply chain.
Depending on the nature of the business and applicable ICV requirements, companies can review initiatives that support supplier capability, quality, technology, productivity or operational development.
A formal supplier-development programme can potentially provide benefits beyond ICV, including:
More reliable suppliers
Better quality
Shorter supply chains
Reduced dependence on imports
Improved supplier capabilities
Stronger long-term commercial relationships
Companies should ensure that qualifying activities are properly documented and supported.
5. Review Investments in Fixed Assets
Local investments in fixed assets are another important component of the ICV calculation.
Businesses planning expansion, new facilities, equipment, technology or other capital expenditure should therefore understand the potential ICV implications before making major investment decisions.
Maintaining an accurate fixed asset register is particularly important.
The company should be able to support information relating to assets through appropriate documentation such as invoices, asset schedules, accounting records and depreciation calculations.
An ICV pre-assessment can help management understand how planned investments may affect the company's future ICV position.
6. Don't Ignore the ICV Bonus Opportunities
One of the most important developments under the Enhanced ICV Program is the Bonus Scheme.
The current framework recognises seven strategic areas:
Productivity & Automation
Capability Building
Investment Growth
Qatarization
Exports
Research & Development
Sustainability
This means companies looking to improve their ICV Score in Qatar should look beyond traditional procurement and payroll considerations.
For example, a business investing in automation, expanding its Qatar operations, developing capabilities, increasing exports or undertaking qualifying sustainability initiatives should assess whether those activities may contribute under the applicable bonus criteria.
The important point is to plan these activities in advance and maintain the evidence required to support them.
7. Improve Your Accounting and Documentation
Sometimes the opportunity to strengthen an ICV submission is not simply about spending more money.
It is about having better financial information and supporting documentation.
Companies should consider reviewing their accounting system and general ledger to ensure relevant expenditure can be easily identified and supported.
Common areas to review include:
Supplier master data
Procurement records
General ledger classifications
Payroll information
Employee records
Training expenses
Supplier development expenses
Fixed asset registers
Capital expenditure
Import and local purchase information
Supporting invoices and payment documents
Waiting until certification to organise this information can make the process more difficult.
Instead, businesses should establish an ICV-ready accounting and documentation system throughout the year.
8. Conduct an ICV Pre-Certification Review
One of the most practical ways to improve the process is to conduct an ICV Score Improvement Review before certification.
The purpose of the review is not to certify the score. Formal certification must be carried out by a Tawteen-approved independent ICV Certifier.
Instead, a pre-certification review can help management understand:
The company's estimated current ICV position
Major factors affecting the score
Procurement patterns
Potential documentation gaps
Opportunities for local sourcing
Workforce training opportunities
Supplier development opportunities
Fixed asset considerations
Potential bonus areas
Areas requiring improvement before the next reporting period
This allows management to make informed business decisions rather than discovering weaknesses only when the ICV certification process has already started.
9. Start ICV Planning Early
Perhaps the biggest mistake companies make is waiting until their ICV Certificate is about to expire before thinking about their next score.
ICV is largely driven by business activities that occur throughout the financial year.
Therefore, improving an ICV Score is usually a continuous process rather than a last-minute certification exercise.
Ideally, companies should review their ICV position periodically during the year.
For example:
Beginning of the year:Establish the ICV improvement plan and identify major opportunities.
During the year:Monitor procurement, training, supplier development, investments and relevant bonus activities.
Before year-end:Conduct an indicative ICV review and identify documentation gaps.
After financial statements are audited:Prepare the scorecard and supporting documentation for submission to the selected approved ICV Certifier.
This approach can make ICV part of the company's wider procurement and business strategy.
ICV Certification vs ICV Score Improvement
It is important to understand the distinction.
ICV Certification involves independent validation of the company's ICV Scorecard by a Tawteen-approved ICV Certifier.
ICV Score Improvement Advisory, on the other hand, focuses on analysing the business before certification and identifying legitimate opportunities to improve its future ICV performance.
These services can therefore complement each other.
The objective should never be to artificially increase an ICV Score.
Instead, the goal is to identify genuine business activities that create more economic value within Qatar while ensuring that eligible activities are correctly captured, classified and documented.
Why Improving Your ICV Score Matters
A stronger ICV position can be commercially important for companies targeting opportunities within Qatar's Energy Sector and related supply chains.
ICV is designed to encourage economic activity within Qatar, including local sourcing, workforce development, supplier development, investment and other strategic contributions.
For businesses, this means ICV should increasingly be viewed not simply as another annual compliance requirement.
It can become part of the company's:
Procurement strategy
Tender strategy
Workforce planning
Investment planning
Supplier-development strategy
Financial reporting processes
Long-term Qatar growth strategy
Companies that understand this early may be better positioned to plan their operations around both commercial objectives and local value creation.
Planning Your Next ICV Renewal?
If your ICV Certificate in Qatar is approaching renewal, don't wait until the certification process begins to review your score.
A structured ICV Score Improvement & Pre-Certification Review can help identify potential opportunities and documentation gaps before your next certification.
Before you renew your ICV Certificate, find out whether your ICV Score can be improved.
Contact our team to arrange an initial ICV consultation.
Frequently Asked Questions
How can I improve my ICV Score in Qatar?
Improving an ICV Score may involve reviewing local procurement, workforce training, supplier development, investments in fixed assets and applicable bonus opportunities. The appropriate strategy depends on the company's actual operations, cost structure and eligibility under the applicable ICV methodology.
Can I improve my ICV Score before renewal?
Yes. In fact, businesses should ideally assess their ICV position well before renewal because many factors affecting the score arise from business activities undertaken throughout the financial year.
Does buying from local suppliers improve ICV?
Local procurement can contribute to ICV, but the impact depends on the applicable methodology and supplier characteristics. Companies should analyse procurement decisions rather than assuming every local purchase has the same ICV effect.
What is ICV+ in Qatar?
ICV+ is a policy designed to strengthen the competitiveness of eligible local manufacturers. MOCI-identified eligible manufacturers receive enhanced ICV treatment, which can also influence the ICV contribution associated with relevant purchases from those manufacturers.
What are the ICV bonus categories?
The Enhanced ICV framework identifies seven bonus areas: Productivity & Automation, Capability Building, Investment Growth, Qatarization, Exports, Research & Development and Sustainability.
Who can issue an ICV Certificate in Qatar?
ICV certification is performed by independent ICV Certifiers pre-approved by Tawteen. The certifier validates the ICV Scorecard and supporting documentation according to the applicable methodology.
When should a company start preparing for ICV renewal?
Companies should ideally monitor their ICV position throughout the financial year rather than waiting until the certificate is close to expiry. Early planning provides more opportunity to address procurement, documentation and other strategic areas that may affect future ICV performance.
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