ANNOUNCEMENT 01 Dec 2015
On 01 December 2015, the largest state-owned oil company i.e. Saudi Aramco launched the In Kingdom Total Value Add (IKTVA) program with the primary scope to boost local content development in the Saudi jurisdiction.
NUMBER OF INTERVENTIONS
Saudi Aramco (2015) Saudi Aramco.In Kingdom Total Value Add (IKTVA). https://www.iktva.sa/faq/
On 01 December 2015, the largest state-owned oil company Saudi Aramco, with the intention of promoting local content development, initiated the In Kingdom Total Value Add (IKTVA) program. Specifically, the IKTVA initiative measures and then subsequently rewards the performance of the suppliers engaged with Saudi Aramco. Saudi Aramco will prefer suppliers with a larger expenditure share in the following four areas: 1) Localised goods and services; 2) Salaries paid to Saudis; 3) Training and development of Saudis and 4) Supplier development spending.
Through this preferential access, the IKTVA program aims achieve 70% localisation of Saudi Aramco's supply chain by 2021, up from currently 23 percent. The increased localisation shall create 500.000 additional jobs at a national level as well as enable 30% export of Saudi energy sector products.