In-Kingdom Total Value Add (IKTVA)

In-Kingdom Total Value Add (IKTVA) is Saudi Aramco's mandatory local content programme, requiring every supplier that bills more than SAR 375,000 per year with Aramco to measure, certify, and actively grow the share of value it generates inside Saudi Arabia.

What is In-Kingdom Total Value Add (IKTVA)?

IKTVA was created by Saudi Aramco to translate its enormous procurement budget into long-term industrial development in Saudi Arabia. Any supplier whose annual billings with Aramco exceed SAR 375,000 must participate. Participation means preparing and submitting a five-year investment plan and reporting annually on four dimensions: the proportion of goods and services procured locally, the size and composition of the Saudi national workforce, capital investments made inside the Kingdom, and research and development activity conducted in Saudi Arabia. Aramco aggregates these inputs into an IKTVA score.

By early 2026, Aramco had reached 70 percent local content against a target of 75 percent by 2030, with 350 active IKTVA investments supporting that trajectory. Foreign companies must establish a registered legal entity in Saudi Arabia with a MISA (Ministry of Investment) licence to qualify, as a foreign firm operating only from abroad cannot demonstrate meaningful in-Kingdom value. Suppliers with higher IKTVA scores receive preferential treatment in Aramco's vendor selection, making the score a direct competitive variable rather than a compliance formality.

Aramco's annual capital expenditure of USD 48 to 58 billion, with USD 25 billion in Jafurah gas expansion contracts awarded in 2024 alone, means IKTVA compliance is the entry requirement for one of the world's largest single-buyer procurement programmes.

Why IKTVA matters for bidders

IKTVA is non-negotiable and the mastery data is explicit: ignoring IKTVA is one of the most common Gulf-specific disqualifications. Because Aramco's vendor pre-qualification takes three to twelve months and IKTVA investment planning is a separate parallel track, a firm that delays either process will not be positioned to bid when a Jafurah or Master Gas System contract opens. The five-year investment plan also means that IKTVA is a medium-term commitment, not a one-time registration step, so firms should model their Saudi entity costs and localisation roadmap before entering the programme.

Example

A German engineering firm targeting Aramco's Jafurah gas field expansion contracts begins by establishing a Saudi legal entity and obtaining a MISA licence. It then develops a five-year IKTVA investment plan that includes hiring Saudi engineers, sourcing fabricated components from Saudi manufacturers, and committing to a local R&D partnership. That plan is submitted as part of vendor pre-qualification, and the resulting IKTVA score determines the firm's competitive standing when Aramco evaluates bids from its approved vendor list.

Frequently Asked Questions

At what billing level does IKTVA become mandatory?

IKTVA applies to all suppliers once their annual billings with Aramco exceed SAR 375,000. Below that threshold, participation is voluntary.

Do foreign companies need a Saudi legal entity to participate in IKTVA?

Yes. Foreign companies must establish a registered legal entity in Saudi Arabia with a MISA licence, because in-Kingdom value cannot be demonstrated from a purely offshore presence.

How does IKTVA differ from ICV?

icv is the UAE's local content programme administered through ADNOC and Abu Dhabi government entities. IKTVA is Saudi Aramco's equivalent in Saudi Arabia. Both measure local economic contribution but are separate programmes with different thresholds, scoring criteria, and administering bodies.