Saudi Arabia plans to spend more than SR1.5 trillion ($400 billion) on its In Kingdom Total Value Add (IKTVA) program in the next 10 years with plans to prepare 360,000 trainees for the labor market by 2030.
IKTVA was designed and launched in December 2015 with the aim of leveraging the relationship between Saudi Aramco and its suppliers to support the company’s goals to increase local content to 70 per cent by the end of 2021. IKTVA also seeks to develop a diversified and sustainable ecosystem that is capable of competing in the energy sector in the Kingdom, which will provide the labor market with 360,000 graduates from 30 Saudi Aramco training centers and institutes by 2030.
IKTVA opens new perspectives for localization
IKTVA program aligns with Saudi Aramco’s strategy to support and enhance local content programs. It is a main procurement program carried out by the company that contributes to accelerating localization and expanding investment opportunities for small and medium enterprises, which will make them more capable of growing and effectively contributing to economic growth.
IKTVA also aims to develop and diversify economic resources and attract investment by increasing the percentage of local content in the oil and gas sector. In order to achieve tangible and practical results, the company continues to hold the IKTVA Forum, which is an annual platform for meeting with manufacturers and energy-related service providers to enhance total added value in alignment with Vision 2030 and the 2020 National Transformation Program.
Saudi Aramco is keen on supporting the growth and development of local companies that manufacture materials needed for the power generation sector, provide engineering and oil field services, in addition to building specialized industrial cities in energy and manufacturing to boost the Kingdom’s status as a major investment center in the energy services sector locally and internationally.
Increasing world competitiveness
On top of Saudi Aramco’s priorities is the creation of a world-class competitive local supply chain that adds value to the Kingdom. In the past three years since IKTVA was launched, the company made significant progress in implementing IKTVA program by focusing on the development of a reliable local supply chain and the creation of job opportunities. The program seeks to develop the energy services sector and increase the volume of goods and services locally available, thereby contributing to greater efficiency while enhancing and diversifying the local economy.
Since the IKTVA program launch, 98 local businesses have registered to do business with Saudi Aramco. At the same time, 90 local businesses have expanded their operations and were approved for new production lines.
Competitive energy sector
Saudi Aramco seeks to further develop IKTVA’s capabilities in order to reach its goal of serving the national economy. Therefore, IKTVA has become a roadmap leading efforts to develop the supply of goods and services and help establish a national energy sector capable of competing on the world level and capable of exporting 30 per cent of its production to global markets.
Effective national supply chain
IKTVA offers a level-playing field of opportunities for local and global suppliers who meet the conditions for obtaining Saudi Aramco contracts. In addition, it is a strong boost for localizing jobs and industry. In the first phase of the program, the company sought to achieve continuous growth in the local content of goods and services.
Saudi Aramco seeks through the program to boost the means and efforts to ensure the continuation of building a diverse, effective and highly-efficient supply chain that can meet its business objectives and drive economic growth across the Kingdom on a sustainable basis. IKTVA also contributes to building a solid base of alliances among specialized national investment entities and world entities with long experience in this regard.
TradeArabia News Service