In-Country Value (ICV) Procurement in Qatar

Overview: Qatar’s commitment to enhancing local economic growth through the In-Country Value (ICV) initiative plays a crucial role in its development strategy. This newsletter will explore how the ICV procurement process contributes to Qatar's long-term sustainability by prioritizing the use of local businesses, services, and resources in procurement contracts.

1. Understanding In-Country Value (ICV)

In-Country Value refers to the strategy where organizations prioritize local economic benefits within the procurement process. Qatar has implemented this system to ensure that a greater share of money spent on goods and services stays within the country. This results in the creation of local jobs, bolstering local industries, and encouraging investment in the national economy.

2. ICV Calculation & Requirements

The ICV score is determined by several key factors:

• Local Sourcing: The extent to which products and services are sourced from within Qatar.
• Job Creation: The employment opportunities generated for local citizens.
• Local Partnerships: Collaborations with local businesses to strengthen the supply chain.

Companies participating in public tenders must meet certain ICV thresholds to be eligible for consideration. A higher ICV score can improve a company’s chances of securing government and large-scale private sector contracts.

3. Impact on Qatar’s Economy

The ICV initiative plays a vital role in achieving the goals of Qatar’s National Vision 2030. By encouraging local sourcing and investment, it helps reduce reliance on imports, supports the growth of the private sector, and accelerates job creation for Qataris. This contributes significantly to long-term economic diversification, which is a core goal of the country’s vision.

4. Challenges and Opportunities for Businesses

While the ICV policy opens new doors for local businesses, it also presents challenges, especially for international companies looking to participate in Qatar's growing market. Businesses need to adapt by:

• Developing local partnerships to boost their ICV score.
• Investing in the local workforce, either through direct hiring or training programs.
• Building a strong local supply chain that can meet the increasing demand for domestic products and services.

For companies that can successfully navigate these requirements, the rewards include access to large government and private sector projects that align with Qatar’s strategic goals.

5. The Future of ICV in Qatar

With Qatar’s ongoing and upcoming infrastructure projects, such as the 2022 FIFA World Cup legacy, the demand for ICV-compliant suppliers is expected to continue rising. Companies that align their operations with Qatar’s ICV requirements will be well-positioned to benefit from the expanding procurement opportunities, further integrating into the local economy.

Conclusion

The ICV procurement system is more than just a regulatory requirement—it's a strategic move to promote economic growth and sustainability in Qatar. For businesses, aligning with the ICV policy is crucial not only for securing contracts but also for contributing to Qatar’s economic diversification and future prosperity. Companies that develop local capabilities will be best positioned to seize the opportunities in Qatar’s rapidly evolving market.