Publication
Contract and Toll Manufacturing under ICV and IKTVA –The Easy Way Out?
The Abu Dhabi NationalOil Company (ADNOC) and Saudi Aramco have implemented localisation programs (ADNOC: In Country Value or ICVand Saudi Aramco: In-Kingdom Total Value Add Pro-gram or IKTVA). ADNOC announced that its ICV spend for 2018 will amount to over AED 18 billion (approx. EUR 4.3 billion). Saudi Aramco plans to spend more than SAR 1.5 trillion (approx. EUR 350billion) on its IKTVA program in the next 10 years. Since the ICV and IKTVA programs do not allow mutual recognition, suppliers cope to comply with several localisationprograms in the region. This legal briefing gives an overview of contract and toll manufacturing models and their respective pitfalls in light of the ICV and IKTVA requirements