Saudi Arabia has rapidly become a global hub for energy, innovation, and industrial development. At the centre of this transformation stands the IKTVA certificate, a cornerstone initiative by Saudi Aramco aimed at driving localisation and sustainable economic growth. For companies aspiring to work with Aramco or establish a long-term presence in the Kingdom, understanding and securing an IKTVA certificate is not just an option — it is a strategic necessity.
This article explores everything you need to know about the IKTVA certification — its purpose, eligibility, process, benefits, and how it aligns with Saudi Arabia’s Vision 2030. Whether you’re a supplier, contractor, manufacturer, or service provider, this comprehensive guide will help you understand why IKTVA is the key to unlocking countless business opportunities in the region.
What is the IKTVA Certificate?
IKTVA stands for In-Kingdom Total Value Add. It is a program developed by Saudi Aramco to measure and increase the level of local content contributed by its suppliers and contractors. In simpler terms, it evaluates how much of a company’s goods, services, workforce, and operations are sourced and conducted within Saudi Arabia.
The IKTVA certificate reflects a company’s commitment to localising its business activities — hiring Saudi nationals, using local suppliers, and investing in domestic infrastructure, research, and training. The higher the local contribution, the stronger the IKTVA score a company receives.
This initiative supports Saudi Arabia’s broader national objective of economic diversification under Vision 2030, helping to reduce dependency on oil exports and build a robust, sustainable industrial ecosystem that creates jobs for Saudi citizens.
The Purpose Behind the IKTVA Certificate
The core mission of the IKTVA program is to create a balanced and self-reliant economy that thrives on domestic talent and resources. The certificate encourages businesses to shift their operations, investments, and workforce development efforts into the Kingdom.
Through the IKTVA framework, Saudi Aramco ensures that every supplier or partner adds measurable value to the local economy. This includes employing Saudi nationals, sourcing materials locally, and fostering innovation through local research and development.
Moreover, the IKTVA certificate has become a benchmark of quality, integrity, and alignment with the national vision. Companies holding this certification demonstrate that they are not merely doing business in Saudi Arabia but are actively contributing to its growth and prosperity.
The Strategic Role of IKTVA in Vision 2030
Saudi Arabia’s Vision 2030 outlines a future built on sustainability, diversification, and local empowerment. The IKTVA program plays a direct role in achieving these objectives by increasing the localisation ratio in Aramco’s supply chain and promoting domestic industrial capabilities.
Through the IKTVA certificate, Aramco aims to achieve:
- A higher percentage of goods and services produced locally.
- Increased employment of Saudi nationals.
- Expanded opportunities for local small and medium enterprises (SMEs).
- Enhanced technological transfer and research collaboration.
- Improved competitiveness of Saudi industries in global markets.
This alignment between corporate performance and national goals makes the IKTVA certificate one of the most influential certifications in Saudi Arabia’s industrial landscape.
Who Needs an IKTVA Certificate?
Any company that supplies goods or services to Saudi Aramco — whether a manufacturer, contractor, or service provider — is required to participate in the IKTVA program. It applies to both local and international companies that aim to be part of Aramco’s extensive procurement network.
Companies that wish to become approved suppliers must present their IKTVA score or certification as part of the qualification process. Even if your organisation operates outside Saudi Arabia, you are encouraged to participate if you intend to work with Aramco in the future.
Businesses across several industries, including oil and gas, energy, engineering, construction, and manufacturing, are actively pursuing the IKTVA certificate to gain credibility and secure long-term partnerships within the Kingdom.
The IKTVA Scoring System Explained
The IKTVA score represents the percentage of your company’s total value that is added within Saudi Arabia. It is calculated through a detailed formula that takes into account several components:
- Local Content in Goods and Services: The value of products and services produced within the Kingdom.
- Saudi Workforce Compensation: The salaries and benefits paid to Saudi nationals.
- Training and Development: Investments made to train and upskill Saudi employees.
- Supplier Development: Support provided to local suppliers and SMEs.
- Research and Development: Expenditure on local R&D activities.
- Incentive Factors: Additional contributions such as exports, sustainability initiatives, or regional headquarters in Saudi Arabia.
The IKTVA score is then expressed as a percentage. The higher the number, the greater the company’s contribution to the Saudi economy.
The Process of Obtaining an IKTVA Certificate
Securing an IKTVA certificate involves several structured steps. Each step is designed to ensure accuracy, transparency, and genuine commitment to localisation.
1. Download the Official IKTVA Package
Companies begin by downloading the official IKTVA guideline package, which includes templates, instructions, and calculation sheets. These documents help you understand how to gather and report your localisation data correctly.
2. Complete the IKTVA Survey
The company must fill out a detailed survey capturing all relevant data — financial records, workforce composition, training programs, supplier information, and research spending. This step helps establish a baseline localisation score.
3. Audit by an Approved Third-Party Firm
After the survey, your submission must be verified by an approved audit firm. The audit ensures that the numbers and documentation accurately reflect your company’s operations in Saudi Arabia.
4. Submit Documents via the IKTVA Portal
Once audited, the survey and supporting documents are submitted to the IKTVA online portal for review by Saudi Aramco’s evaluation team.
5. Develop a Five-Year Action Plan
After receiving your initial score, you will need to outline a five-year plan describing how your company intends to increase its localisation performance.
6. Receive the IKTVA Certificate and Score
Upon successful completion of the process, your company receives the IKTVA certificate — a formal recognition of your participation and your verified IKTVA score.
Benefits of Holding an IKTVA Certificate
The IKTVA certificate provides tangible advantages that go beyond compliance. It positions your business for long-term success in Saudi Arabia’s competitive industrial sector.
1. Stronger Eligibility for Aramco Contracts
Saudi Aramco prioritises suppliers with certified IKTVA scores. Holding this certificate can significantly improve your chances of being shortlisted for contracts and tenders.
2. Enhanced Market Credibility
An IKTVA certificate demonstrates that your company operates ethically, transparently, and in alignment with the Kingdom’s development goals. It builds trust with government entities, investors, and local partners.
3. Competitive Edge in the Saudi Market
With more international players entering Saudi Arabia, the IKTVA certificate gives you an edge by showcasing your commitment to local value creation and sustainable operations.
4. Long-Term Growth and Partnerships
Companies with high IKTVA scores are viewed as strategic partners in Saudi Aramco’s long-term vision. This often leads to recurring contracts and collaboration opportunities.
5. Contribution to Vision 2030
By localising operations and hiring Saudi talent, you become an active participant in the Kingdom’s national transformation agenda. This not only benefits the economy but also enhances your brand reputation.
Challenges in Achieving a High IKTVA Score
While the benefits are clear, reaching a strong IKTVA score requires consistent effort and investment. Common challenges include:
- Shortage of skilled Saudi labour in certain technical sectors.
- Limited availability of local raw materials or specialised services.
- Complex documentation and reporting requirements.
- Balancing cost efficiency with localisation goals.
To overcome these challenges, companies must plan strategically — investing in local partnerships, training programmes, and supply-chain development initiatives.
Best Practices to Improve Your IKTVA Score
- Invest in Saudi Talent: Prioritise hiring and training Saudi nationals for key roles.
- Partner with Local Suppliers: Build long-term relationships with domestic vendors and SMEs.
- Expand Local Manufacturing: Shift more of your production operations into the Kingdom.
- Collaborate in R&D: Establish local innovation hubs or collaborate with Saudi universities.
- Implement Training Programs: Offer professional development opportunities for Saudi employees.
- Document Everything: Maintain transparent, well-documented evidence of your localisation efforts for audits.
These strategies not only improve your IKTVA score but also create sustainable value for both your business and the Saudi economy.
The Future of IKTVA in Saudi Arabia
The IKTVA program is evolving to become even more integrated across industries. In recent years, Aramco has expanded its localisation requirements to include sustainability, digital transformation, and ESG (Environmental, Social, and Governance) initiatives.
Future guidelines are expected to align more closely with the Local Content and Government Procurement Authority (LCGPA), creating a unified standard for measuring localisation across the Kingdom.
As Saudi Arabia accelerates its industrial diversification, the IKTVA certificate will continue to serve as a gateway for businesses seeking to establish strong, long-lasting partnerships in one of the world’s most dynamic economies.
Conclusion
The IKTVA certificate is far more than a compliance document — it is a symbol of commitment to Saudi Arabia’s economic growth and industrial self-sufficiency. For companies aiming to collaborate with Saudi Aramco or establish a serious presence in the Kingdom, this certification is essential.
By investing in local talent, fostering innovation, and sourcing within the country, businesses not only enhance their IKTVA scores but also contribute to the nation’s broader vision for a prosperous, diversified economy.