A bedrock of Saudi Aramco’s strategy is to create value in every aspect of our business, maximizing long-term economic growth and diversification.
In late 2015, Saudi Aramco launched the “In-Kingdom Total Value Add” (iktva) Program with the goal of increasing the added value by the local suppliers and supporting the local industry development. Iktva, in alignment with Saudi Vision 2030, is a Saudi Aramco strategic imperative and a value-creation program that will enable a globally competitive Saudi industrial base.
Through the In Kingdom Total Value Add (iktva) program, we are taking action to drive additional domestic value creation to support a rapidly changing economic environment and foster future prosperity.
Working with our suppliers, we will capture value that produces long-term tangible benefits – quality jobs for a growing Saudi population, innovation and diversification of industry, and increased global competitiveness.
As well as driving domestic value creation, iktva prioritizes consistency and transparency to create a level playing field for more than 1000 suppliers we are engaged with across our local and international network.
Designed to amplify the efforts of our partners and our investments, iktva was developed and tested through extensive consultation, both in Kingdom and internationally.
For the program details along with the available opportunities, please visit the website. https://iktva.sa/
Other useful links
Below are some useful links for you to find investment opportunities in the Kingdom.
- Please visit the website of IKTVA, https://iktva.sa/ to find out more about the “In-Kingdom Total Value Add” (iktva) Program.
- Please visit the website of Ministry of Investment, https://www.misa.gov.sa/en/ , which illustrates in more details the incentives and opportunities in Saudi Arabia as well as providing guidance on obtaining the Investment License.
- Please visit the website of the King Salman Energy Park, https://spark-ksa.com/ , which will be operated and anchored by Saudi Aramco. The Company will build its Drilling & Workover Headquarters in SPARK, as well as operate its Procurement & Supply Chain Management Center from this hub.
At the same time, Aramco Asia Shanghai Office is working with potential investors to promote iktva program and as result of these effort, many Investment Plans are under evaluation and we continue to receive more and more proposals from Chinese suppliers.
Panyu Chu Kong Steel Pipe Co., Ltd.
With a total investment of US$ 200 million, Panyu Chu Kong Steel Pipe Co., Ltd. (“PCK”) started to operate its JV with Abdel Hadi A. Al Qahtani & Sons Company in Dammam, Saudi Arabia in 2015, . The JV company—Al Qahtani PCK Pipe Company (“AQPCK")—produces 300,000 tons of welded pipe annually with 190 employees, among which 56 are Saudi citizens, representing a Saudization ratio of 30%.
AQPCK has been ISO certified, API certified and 9COM certified for straight welded LSAW pipe. It completed the production of first sample pipe in April 2015. PCK received Aramco temporary vendor approval in April 2017, and permanent vendor approval in January 2019. PCK is planning to expand its Saudi plant with its partner to manufacture ERW pipe.
In 2008, Teco Middle East Electrical and Machinery Co., Ltd. (“TME”), a JV company between Taiwan-based TECO Corporation, Al-Quraishi Electrical Services of Saudi Arabia, Shoaibi Group and Al Ashjaea Establishment, started to manufacture medium and high voltage induction motors of 200 – 13,000 hp in Jeddah, Saudi Arabia.
TME is the first electrical medium and high voltage induction motors manufacturer in the Middle East. TME production range is 200 – 13,000 hp, with a full capacity of 400-600 units per year. The motors design, manufacturing process, quality control procedure and the technology are all licensed by its international counterparts, TECO Corporation and TECO-Westinghouse in the USA.
With a total investment of US$ 9.4 million, TME has a staff of 70 employees, among which 27% or 19 are Saudi citizens. It is located in Dammam, at the Eastern Province of Saudi Arabia with a total area of 34,000 m² land where 14,000 m² is covered area. TME facilities include manufacturing plant of medium and high voltage induction motors, high voltage testing facility, coil shop and service department including repair shop for all types of motors.
Neway Valve (Suzhou) Co., Ltd.
In 2006, Neway Valve (Suzhou) Co., Ltd. set up a JV company with Saleh & Abdulszin Co., Ltd. in Dammam Industrial City, Saudi Arabia for the manufacture of industrial valves. Named as Abahsain Neway Industrial Co., Ltd. (“ABNEW”), the JV company has a total investment of US$ 4 million with 72 employees in total, among which 27 or 38% are Saudi citizens.
9COM-ceritified for the supply of check valve, gate valve and globe valve, ABNEW manufactures 18,000 valves per annum. Moving forward, ABNEW is planning for new investment and expanded scope of supply.
Successful events to Promote Iktva
Lists of events hosted by Aramco
Lists of events participated by Aramco
27 August 2019 - Aramco Asia Shanghai 2019 Supplier’s Forum
Hosted by Aramco Asia
Aramco Asia Strategic Procurement & Logistic Department in Shanghai has hosted Aramco Asia Shanghai 2019 Supplier’s Forum to promote iktva and investment opportunities in Saudi Arabia. More than 300 participants from government, semi-government agencies, industrial associations and Chinese business community attended the Forum.
During the forum, representatives from Aramco Asia SPLD, Saudi Aramco, Saudi Arabian General Investment Authority (SAGIA), King Salman Energy Park (SPARK), Dusser, NIDLP and Non-metallic Initiative in Saudi Aramco presented their subject focusing on iktva Program, iktva localization opportunities, attractive investment environment in Saudi Arabia and available business opportunities in national programs; and highlighting the strength of Saudi economy, key incentives, favorable policies.
In the forum two Memoranda of Understanding (MoU’s) were signed between Aramco Asia and following Chinese entities for strategic collaboration and cooperation to promote iktva program and investment opportunities in the Kingdom and bring potential Chinese investors to Saudi Arabia.
China Overseas Development Association (CODA)
TEDA Investment Holding Company Limited (TEDA)
After the Forum, fifteen (15) bilateral meetings were coordinated by AA-SH with Suppliers. Representatives from AA-SH; SPARK and CSD met with these suppliers covering different sectors, such as Non-Metallic, UAV, Forging, Electrical, Renewable…etc.
2017 - Saudi China Investment Forum
Hosted by Aramco Asia
For the visit by King Salman to China, SPLD Shanghai team actively participated the Saudi-China Investment Forum organization and reception. Around 700 representatives, mainly top managements from Aramco suppliers and customers as well as government officials attended the forum. The king met with Chinese entrepreneurs and attended the closing ceremony of the Saudi-China Investment Forum.
During the event, a MOU (Memorandum of Understanding) was signed by Saudi Aramco CEO and Aerosun Chairman, for exploring the feasibility of manufacturing of Reinforced Thermoplastic (RTP) pipe in Saudi Arabia, including R&D training, maintenance, repairing and spare parts storage.
2017 - SAGIA Investment Workshop
Jointly hosted by Aramco Asia and SAGIA
In line with IKTVA program, SPLD Shanghai, in collaboration with ABIO, invited 12 Chinese suppliers to attend the SAGIA investment workshop in Beijing. Basically these companies are potential investors to participate in IKTVA program and submitted their investment plans, and most of them did not visit Saudi yet. During the meeting, SAGIA Investor Attraction Director introduced Saudi Arabia investment opportunity and Vision 2030. Also, SPLD presented IKTVA program. It was a good opportunity for the suppliers to meet with SAGIA to address their investment questions.
2017 - Chemical Supplier Workshop
Hosted by Aramco Asia Shanghai
SPLD Shanghai office conducted two workshops with Drilling Chemical companies. The workshops were attended by 19 CEOs from different approved drilling chemical manufactures in April.
The workshops are part of Aramco Asia SPLD efforts to promote iktva program to China suppliers. During the workshop, Aramco demand & forecast, drilling chemical process, in-kingdom investor incentives and iktva program were shared and introduced to the attendees. The Suppliers appreciated the information and were active by the questions raised during the Q&A section which lasted for more than one hour, with detailed discussion of how to do business with Aramco and in kingdom investment environment, incentives, and they can participate in iktva program.
2016 Beijing - Vision 2030 Business Forum
Hosted by Aramco Asia
During the visit by then Deputy Crown Prince Salman to China, SPLD Shanghai team actively participated the Vision 2030 Business Forum in Beijing, and invited around 180 representatives, mainly managements from Aramco suppliers and contractors. The message delivered during the forum was well received by our invitees. SPLD Shanghai received good feedback from our suppliers and contractors.
2016 Shanghai - “Vision 2030 Saudi Investment Forum
Jointly hosted by Aramco Asia and SAGIA
During the visit by H.E. Dr. Majed A. Al-Qasabi, Minister of Commerce and Investment, SPLD Shanghai hosted “Vision 2030 Saudi Investment Forum”, jointly with SAGIA, and over 150 potential investors and government officials attended this event. The event has featured a wide range of successful investment scenario studies and the welcome progress made by Chinese investors in Saudi Arabia. H.E. Dr. Majed A. Al-Qasabi, the Kingdom’s Minister of Commerce and Investment, joined this event and delivered the remarks at the opening ceremony. The event was highly appreciated by H.E. Dr. Al-Qasabi, as well as H.E. Mr. Khalid Al-Falih, the Minster of Energy, Industry and Mineral Resources.
2015 Shanghai - Investment Forum with NBD
Jointly hosted by Aramco Asia and NBD
To support Saudi Aramco’s initiative to promote Investment in the Kingdom, Aramco Asia Beijing and Shanghai conducted Investment Forum in Shanghai for the period of Sept. 1 & 2, 2015. Approximately 110 representatives from more than 60 Chinese suppliers attended the forum, under the theme “Build the Belt and Road Together, China’s New Opportunities in Saudi Arabia”. The event was supported by Chinese Government, and three entities attended the Forum:
Shanghai Federation of Industry and Commerce (Shanghai General Chamber of Commerce);
Shanghai Municipal Commission of Commerce;
Western Region Development Department, National Development and Reform Commission
During the forum, Aramco Asia and Saudi Aramco Representatives introduced Aramco as well as the business opportunities in Jazan Economic City, Al-Hasa Energy City and Ras-Al-Khair Industrial City. In addition, two Chinese suppliers, PCK & HUAWEI, presented their investment experience in Saudi Arabia as success stories. After the forum, face to face meetings were arranged with 21 suppliers and the three government entities.
2019 International Petroleum Technology Conference
SPLD attended 2019 International Petroleum Technology Conference in Beijing from March 26 to 28. This is one of most important global technical forum which is organized jointly by Saudi Aramco and CNPC. SPLD promoted iktva and introduced registration process to visitors. SPLD also did benchmark communication with other peer companies such as Total, CNPC and CNOOC etc.
2019 China Saudi Investment Cooperation Forum held in Beijing
SPLD Shanghai participated in China Saudi Investment Cooperation Forum held in Beijing, also supported Aramco booth to receive the visitors to our booth. During the forum, SPLD met with a number of suppliers and prompted iktva to them. We will continue to work with them and follow up with them.
2018 iAdvisory : Doing Business with Saudi Arabia on 8th November
SPLD attends and delivers a speech at the investment event, iAdvisory : Doing Business with Saudi Arabia on 8th November. The event hosted up to 180 attendees across various industries with the purpose of promoting investment in Saudi Arabia. iAdvisory is organized by Singapore government’s trade agency, Enterprise Singapore, and was liaised by AAS Business Manager and supported by AAS SC&SD. The event was opened by Chairman of Enterprise Singapore and graced by Governor of SAGIA as well as the Saudi Ambassador to Singapore.
2017 CIPPE - China International Petroleum & Petrochemical Technology and Equipment Exhibition
SPLD Shanghai delivered a presentation about Business Opportunities with Aramco in Saudi Arabia in the 17th China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE 2017) in Beijing. This exhibition is the largest petroleum exhibition in the world. In the speech, SPLD presented the supplier registration process, introduction of the latest iktva program.
2017 China Sourcing Summit On Petroleum & Chemical Equipment (CSSOPE 2017)
SPLD Shanghai participated China Sourcing Summit On Petroleum & Chemical Equipment (CSSOPE 2017). The summit was attended by around 400 representatives from major Oil and Gas companies and Equipment/Services suppliers. During the summit, SPLD delivered a presentation about Business Opportunities with Aramco in Saudi Arabia. In the speech, SPLD presented the supplier registration process for both material and service, introduction of the latest iktva program.
2016 China Petroleum & Chemical Equipment Procurement Conference & the 2nd China Petroleum & Chemical Equipment Export Enterprise Summit
During the summit, SPLD Shanghai delivered a presentation titled Business Opportunities with Aramco Asia, covering: 1) Introduction of Saudi Aramco & Aramco Asia; 2) Doing Business with Aramco Asia, including supplier registration process, and what we source; 3) In-Kingdom Total Value Add (iktva) program. There are around 200 participants attended the event.