In-Kingdom Total Value Add (IKTVA) Program registration in 2023
Foreign investors looking to secure contracts from state oil company Saudi Aramco must i) register a Saudi Arabia entity ii) secure a licence from the Saudi Arabian General Investment Authority and iii) register with Saudi Aramco’s In Kingdom Total Value Add (IKTVA) program.
What is the IKTVA Program?
- Aims to increase the amount of goods and services produced in Saudi Arabia and create jobs for Saudi nationals;
- IKTVA-registered companies must demonstrate that they i) procure locally-manufactured goods and services and ii) hire a ‘substantial’ number of local employees;
- Based on the above, a company is given an ‘IKTVA Score’;
- The higher a company scores, the higher the probability Saudi Aramco will select you as a contractor or service provider.
The IKTVA Score takes into account:
- The amount of local content in goods and services;
- Salaries paid to Saudi nationals;
- Training and development of Saudis;
- Supplier development spending;
- Research & Development;
- Company revenue (spend from Saudi Aramco only).
Steps to register for IKTVA Program
- Complete an IKTVA survey to generate an IKTVA Score;
- Prepare an Investment Plan (see below);
- Submit the survey, together with required supporting documents, to an approved audit Firm for certification;
- Online submit certified survey package to Saudi Aramco for review.
Regardless of IKTVA Score, all companies must prepare a tailored five-year Investment Plan. The document includes:
- company overview and investment type
- planned investment size
- products/services for localisation, including technical summary
- raw material sourcing
- target market
- job creation and Saudization, including local manpower and training program
- planned location
- planned investment timeline and
- export plan (if applicable).
- Newly established companies always have a low IKTVA Score;
- To improve IKTVA Score, we recommend foreign investors i) include at least one Saudi national in the company management team and/or ii) hire several Saudi nationals and invest in a development program for them.
How can Healy Consultants Group help?
|Assist with the review of the IKTVA survey, and submission to Saudi Aramco-approved KSA auditor||1,550|
|Assist with drafting five-year Investment Plan||5,950|
|Assist with recruitment of Saudi nationals, including i) drafting employment contracts and ii) registering the employee for GOSI||4,950 to 9,950|
|Assist with creating a development program for Saudi hires||4,550|
|Assist with sourcing local i) suppliers for purchase of goods and ii) subcontractors for services||2,950|
For additional services, and support with IKTVA registration, kindly email us for a quote.