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ARTICLE · 12 APRIL 2018

Doing Business With Saudi Aramco: The IKTVA Program

Al Tamimi & Company
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Doing business with Saudi Aramco, the World's largest oil and gas company, is the essential feature for many local and international companies operating in the OFSE and related sectors in Saudi Arabia.

Saudi ArabiaCorporate/Commercial Law
Jonathan Reardon
Jonathan Reardon
Alanood Allhaib
Alanood Allhaib

Doing business with Saudi Aramco, the World's largest oil and gas company, is the essential feature for many local and international companies operating in the Oil Field Services and Equipment ("OFSE ") and related sectors in Saudi Arabia.

Historically, Saudi Aramco awarded contracts primarily based on lowest cost and technical capabilities. While those are still key elements for winning work from Saudi Aramco, it has recently moved to making localization of goods and services and promoting and expanding the value of local content a cornerstone of its supplier' selection process.

"Made in Saudi Arabia" has been announced as crucial to the long-term economic well-being and growth of Saudi Arabia with foreign investment being an essential part of accomplishing it. To this end, in December 2015 Saudi Aramco announced it was introducing the In Kingdom Total Value Added Program ("IKTVA"). During 2017, compliance with IKTVA has become a key component for doing business

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