iktva

Saudi Aramco’s iktva Program Helped Battle the Pandemic

Resilient supply chains,  as a result of iktva, were a clear advantage during the pandemic. The pandemic caused supply chain disruptions and exposed the vulnerabilities and critical pinch points of global supply chains.  During these events, companies and regions experienced difficulties obtaining services and materials, especially from offshore suppliers, delivery times increased, quality decreased, and some suppliers had to shut down or went out of business.

“Mohammad A. Al Shammary, VP Procurement & Supply Chain Management at Saudi Aramco, discusses the impact of iktva on the pandemic, and how localization helps build resilience in Oil&Gas.

The full Press Release can be read here:  O&G Aramco iktva Mar 2021

Saudi Aramco CEO credits iktva with helping to build resilience before the pandemic.  “We have seen a lot of plants and factories and suppliers that support Saudi Aramco from Europe, including China and other places – they had to shut down because of the lockdown. That impacted us for a while. But because of the optimum level of inventory that we have and because of our in-Kingdom total value add, which is our local content – we are at 56% so a lot of things are being manufactured in the Kingdom – it helped us a lot.” Quote by Saudi Aramco CEO Amin Nasser.

The Oil&Gas Press Release can be read here: O&G iktva and Covid Jul 2020

T&M Associates and iktva

Starting in 2013, T&M Associates’ team members led the local content/value add program – In Kingdom Total Value Add (iktva).   For the next 5 years, our team members were imbedded in Saudi Aramco and provided the strategy, design, and operational support for a successful execution of the iktva program.  We trained and developed our Saudi partners who have very successfully taken over the program.  Most importantly, we created the environment where iktva is now a core part of  Saudi Aramco company and culture.

At T&M Associates, we take great pride in our team members who provide sustainable economic development programs that continue to grow today and in the future.

iktva in Review: Localizing Commercial Ecosystems

Since 2015, the iktva program identified not only supply chain gaps, but also significant potential business opportunities. Since 2015, iktva has achieved:

  • Creation of 180 business opportunities with a potential market demand of ~ $15B per year
  • A 50% annual growth in local SMEs
  • 94 new agreements with a combined value of $29B, resulting in 34 new local manufacturers
  • 63% local content in KSA (up from a localized-supply baseline level of 35% in 2015).

For the first time, Saudi Arabia is manufacturing flaring equipment and nonmetallic rebar and many other products and services.

“iktva is helping to create a stronger, more diversified and more resilient Saudi economy, with a fourfold rise in spend on local research and development …”

These milestones were reviewed in Aramco Elements Magazine. For the full article: https://bit.ly/3ATEJk5

and in the most recent CEO speech:  https://www.aramcolife.com/en/publications/the-arabian-sun/articles/2023/week-05-articles/speech-ceo-at-iktva-forum

 

iktva in 2022

Summary of Achievements from Saudi Aramco’s 6th iktva Forum held January 24 to 26, 2022.

Saudi Aramco held their 6th iktva (In-Kingdom Total Value Add) conference.  Since the program was launched in 2015, this local content program has:

  • Increased local content in Aramco’s supply chain from 35% to almost 60%
  • Contributed $ 100 billion to Saudi Arabia’s economy
  • Attracted an estimated CapEx of $7 billion
  • Helped create a competitive industrial base in the Kingdom that is now exporting to more than 40 countries

For more information on Aramco’s iktva:

https://youtu.be/RkWuOU1JV00

Saudi Aramco’s 2022 iktva Forum

Supplier Feedback:

January 24 to 26, 2022, Saudi Aramco held their 6th iktva (In-Kingdom Total Value Add) conference.

Aramco’s major suppliers praised iktva as unique when it comes to local content programs because:

  • Iktva has clear metrics and targets
  • It has clear expectations
  • The measurement and monitoring are done on at least a quarterly basis
  • Iktva combines a carrot and a stick whereas most programs are just sticks
  • Opportunities and Aramco’s future are proactively communicated
  • It provides a highly successful framework
  • It is a true catalyst for local content
  • And it is an ecosystem development program not just a company development program.

Oil & Gas in GCC: Opportunities Abound

Benelux Business Council Breakfast Seminar at ADIPEC

On November 12, 2019, Dr. Tom Deeb presented “Oil & Gas in GCC:  Opportunities Abound”, at the Abu Dhabi International Exhibition & Conference (ADIPEC).

Dr Deeb presented the opportunities, challenges, and ways companies can differentiate themselves in this market. Dr. Deeb’s presentation included:

  • the role of Value Add programs, such as Saudi Aramco’s iktva and ADNOC’s ICV,
  • how Value Add programs can be used as a tool to differentiate and gain a market advantage
  • how Value Add programs help European suppliers gain greater share or new markets in the GCC.

Elisabeth Deeb, T&M Associates, also attended the Benelux Business Council Breakfast Seminar at ADIPEC and was available to answer questions.

iktva: Creating Your 5-Year Plan Workshop

Has your company encountered iktva as part of your RFPs?

Are you looking for guidance in understanding iktva?

Do you need assistance in preparing your 5-year plan?

 

T&M Associates offers the short course iktva: Creating Your 5-Year Plan to help you gain invaluable training in just a few days. This course teaches you a systematic step-by-step approach to iktva certification and 5-year plans and answers the following questions:

  • Where to begin, who must be involved, and what information is needed?
  • How to synthesize all of the data and information into a successful iktva certification and 5-year plan.
  • How to leverage your company’s iktva program as a differentiator that helps your company gain market share and new revenues.
  • What steps your company needs to take in order to effectively comply.
  • How to develop the iktva plan in a way that balances cost and iktva.

 

This course will teach the best approach to iktva so that your company receives maximum credit for all added value to the Kingdom of Saudi Arabia. The course is taught in a small-group setting to facilitate attendee discussions, Q&A with the instructor, as well as attendee networking. The instructors include former Saudi Aramco, iktva core team members.

This program was designed for finance, human resources, procurement, and iktva professionals.

 

For more information and course availability, please visit our training website:  www.tmlaunchtraining.com

T&M Associates also offers:

    • customized iktva training programs
    • iktva for Management seminars

For these and additional training sessions, please contact E. Deeb at edeeb@tmlaunch.com

Goic and Aramco Meeting on Industrial Development

 

In March 2017, a delegation from Goic met with Saudi Aramco to discuss attracting investors, providing training, and increasing local content.  Dr. Tom Deeb represented the Aramco iktva group and described the program, expectations, and contributions to the Kingdom economy.

For the full press release in Gulf Times:

 

Saudi Aramco Reaffirms its Commitment to its Flagship Localization Initiative IKTVA

Saudi Aramco Press Release:

H.E. Khalid Al Falih, Minister of Energy, Industry, and Mineral Resources and Chairman of Saudi Aramco, said in a keynote speech: “iktva represents a pioneering and model program, among other major programs which the Saudi Arabian government is working on to expand and diversify the economy, localize strategic industrial and economic sectors, and create jobs, in alignment with Saudi Vision 2030.”  By the end of 2016, iktva has been included in over SR60 billion worth of contracts and the iktva third party certification baseline for the top 100 suppliers will have been completed. 

The full press release can be read here:  https://www.iktva.sa/saudi-aramco-reaffirms-its-commitment-to-its-flagship-localization-initiative-iktva/

IKTVA – Opportunity Awaits Video:  https://www.youtube.com/watch?v=khc7PEbl6-o

Saudi Aramco announced its In Kingdom Total Value Addition

Saudi Aramco announced its In Kingdom Total Value Addition (iktva) program on December 1, 2015. This program is designed to establish the economic foot print and contribution that suppliers make to the Kingdom that will be used to double the local content to 70% by 2021 on an annual spend of $33 billion US. The program has targeted creation of 500,000 new Saudi jobs and increase exports by 30%.

T&M Associates team members provided extensive support in the design, development, and execution of the program.

More information on iktva can be found at this link.