Under the In-Kingdom Total Value Add (IKTVA) program established by Saudi Aramco in 2015, what is the targeted baseline percentage of local content in supply chain procurement?
Answer and explanation
Correct answer: A. 70%
- Step 1: Review supply chain localization benchmarks: Saudi Aramco introduced IKTVA to incentivize international suppliers to build local manufacturing facilities, hire Saudi nationals, and export products.
- Step 2: The overarching target of the IKTVA program is to achieve 70% local content across all Aramco supply chain procurement expenditures.
Answer
70%.
Why not the others: '30%' was an early baseline figure; '50%' is the target for military procurement localization under GAMI; '90%' is unrealistic for high-tech capital goods.
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