Overview

The In-Kingdom Total Value Add (iktva) program is designed to drive domestic value creation and maximize long-term economic growth and diversification to support a rapidly changing economic environment. The program will first establish an iktva baseline score for each supplier measured against key metrics for local value creation. Secondly, select suppliers to develop 5-year action plans that explain, at the category level, their in-Kingdom (investments, local hiring, supplier development, research & development, environment social and governance aspects, cybersecurity, regional headquarters migration, and procurement) and Out of Kingdom (Exports) activities to increase the iktva score. Thirdly, it will measure performance and track progress to ensure the relationship results in continued local value creation. The dynamic has necessarily changed with a value proposition focused on the future. Aramco have historically awarded contracts on the basis of technical compliance and lowest cost. Participation in iktva is currently one of the components used to evaluate most supplier proposals. In fact, if your contractual iktva target is not met, your commercial proposals will remain unopened until your target is met. Our job as iktva consultants is to ensure that you meet your targets with each submission.