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    Contract and Toll Manufacturing under ICV and IKTVA –The Easy Way Out?

    25. February 2019  

    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