the in-Kingdom

Total Value Add

(IKTVA) Program
creating value in the Kingdom

journey Introducing the

1940 2000 in-Kingdom Total
Seeds of socioeconomic development: Concrete steps to increase local content development: Value Add Program
• Built infrastructure.
• Encouraged entrepreneurship among Saudi employees.
• Established NBD in 2003.
• Merged services and procurement functions. (IKTVA)
• Introduced purchasing policy 1963, premium payments 1977. • Mandated Saudization in major contracts.

1980 2010 - 2015

Seeds for a vibrant chemical industry: Competitive Saudi energy sector:
• Master Gas System. • Serving Saudi Aramco’s needs.
• Massive development of the company’s human capital. • Exporting to the region and the world.
• IKTVA Program.
1990
Focus on ‘value adding’ O&G industry:
• Introduced contracting policy for local contractors.
• Introduced a local enterprise support policy.

© Copyright 2015, Saudi Aramco. All rights reserved.

where energy is opportunitytm
introduction the in-Kingdom Total Value IKTVA Supplier creating value in
The in-Kingdom Total Value add (IKTVA) Program is designed to
drive domestic value creation and maximize long-term economic
Add (IKTVA) Program Engagement Program the Kingdom
growth and diversification to support a rapidly changing Saudi Definition Engagement framework: Maximizing the economy:
economy. The IKTVA Program drives, measures and monitors the “added- • Cooperative engagement – suppliers and Saudi Aramco
value” brought to the Kingdom by a supplier. • Sponsorship from both
Creating a level playing field • Active engagement from both
• Uniform evaluations (services and materials) Objective Cost
• Access to information To drive key activities toward localization and job creation, which The process:
• Supplier solution center will be assessed against the following metrics:
2. IKTVA action
1. IKTVA baseline 3. Monitoring
Strategic imperative A. Localized goods and services ($) plan
A bedrock of Saudi Aramco’s strategy is to create value in B. Salaries paid to Saudis ($)
• Establish 3 year For Saudi Aramco • Quarterly status IKTVA
every aspect of our business, maximizing long-term economic C. Training and development of Saudis ($)
growth and diversification. Through the in-Kingdom Total Value history & the supplier: updates to
D. Supplier development spend ($)
Add (IKTVA) Program, Saudi Aramco is taking action to drive • Consistent • Detailed sponsors
additional domestic value creation to support a rapidly changing format activities & • Annual reporting Quality Schedule
E. In relation to revenue (spend from
• Guidance deliverables • Fixed KPIs
Kingdom and foster future prosperity. Saudi Aramco) Additional info.
documents • Established
• Number of Saudi
Partnership and collaboration Supplier IKTVA formula: • Done by a third metrics
employees
• Supplier focused party • Establish
• Investment ($)
• Jointly develop action plans A+B+C+D timeline
% IKTVA = x 100 • R&D spend ($) IKTVA is embedded from start to finish into Saudi Aramco
• Mutual benefit and commitment E
• Exports ($) procurement and contracting cycles:

Opportunity
1. Planning 2. Design 3. Construction 4. Operation
• Diversified local Saudi economy
• Better trained, qualified Saudi workforce
• Export your local content to neighboring GCC markets
Supplier solution center

today’s key messages A single window to Saudi Aramco:

What is IKTVA? • Dedicated supplier relationship managers

• IKTVA is a Saudi Aramco strategic imperative • Registration support
• IKTVA works with suppliers, in a new way for mutual benefit • Pre-qualification technical support
• ITKVA is a value-creation program, not a metric • Liaison with external stakeholder
• Supplier call center
Saudi Aramco’s vision is to enable a globally competitive Saudi
industrial base to deliver 2021 targets: iktva@aramco.com
www.saudiaramco.com/iktva

70%
Local Content
500,000
Jobs
30%
Exports Introducing the
in-Kingdom Total
Value Add Program
(IKTVA)

When is this program taking effect?

Tuesday, December 1, 2015