Aramco’s Rumayyan: IKTVA drew 500 investments to Saudi Arabia with CapEx of $7 bln
Saudi Aramco’s IKTVA program has attracted more than 500 investments inside Saudi Arabia with an estimated capital expenditure of $7 billion, Chairman of the Board of Directors Yasir al-Rumayyan said.
The in-Kingdom Total Value Add (IKTVA) is a program created by Saudi Aramco to baseline, measure and support increased levels of localization in the Kingdom.
“The program creates an ecosystem of integrated value chains that help businesses operate efficiently in Saudi Arabia, and our model has so far attracted more than 500 investments inside the Kingdom with an estimated CapEx (Capital Expenditure) of $7 billion. Of those, more than 100 investments are now operating,” Rumayyan said.
“These investments in the Kingdom contribute to the country’s GDP, benefiting the economy and creating thousands of new jobs,” he added.
Since the launch of the IKTVA program in 2015, it has achieved substantial progress: 30 percent average annual increase of suppliers’ local goods and services procurement contribution, an annual growth of 30 percent in local workforce training and development, and 50 percent annual growth in suppliers’ investments in SMEs.
The Chairman explained that IKTVA facilitates Aramco’s role in the realization of Saudi Vision 2030 through: providing training and skills, creating economic opportunities for both large corporations and small businesses, encouraging a more inclusive workplace, and establishing an ecosystem of integrated value chains to help businesses establish themselves in Saudi Arabia.
The program also helps in building a world-class supply chain to serve both Aramco’s and its partners’ needs and in facilitating the development of a diverse, sustainable and a globally competitive energy sector in the Kingdom.
Rumayyan added that IKTVA has contributed to Aramco’s long-term strategies, such as the recent net zero pledge: “Localization presents a tremendous opportunity to help reduce carbon footprint and therefore build a more sustainable energy sector. Streamlining local logistics and the more efficient use of transport networks offers the long-term potential to reduce emissions, complementing carbon reduction efforts underway elsewhere in the business.”