The In-Kingdom Total Value Add (IKTVA) program is reshaping industrial procurement across Saudi Arabia. Established by Saudi Aramco, IKTVA is more than a localization metric—it is a national strategy that influences supply chain decisions, contract awards, and operational timelines. For industrial stakeholders, particularly in energy, infrastructure, and manufacturing sectors, understanding the practical impact of IKTVA is essential to aligning with Vision 2030 priorities.
Understanding the IKTVA Framework
IKTVA is designed to drive localization by encouraging suppliers to invest in Saudi operations, create jobs for Saudi nationals, and transfer technology. It measures a supplier’s contribution to the local economy using a formula that includes:
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Local content in goods and services
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Labor compensation for Saudi nationals
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Investment in training and development
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Local supplier engagement
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Research and development within the Kingdom
The program aims to reach 70% localization of all spending, increase exports of Saudi-made goods, and create thousands of jobs across the Kingdom’s industrial value chains.
Why It Matters for Procurement
IKTVA is not a symbolic requirement—it has real, measurable influence on procurement decisions. Aramco and other national stakeholders are prioritizing vendors that can demonstrate IKTVA alignment, requiring procurement teams to go beyond price and evaluate long-term local value creation.
Key Implications for Procurement Teams
1. Compliance as a Contractual Requirement
Many projects now require suppliers to hold certified IKTVA scores and demonstrate ongoing commitment to localization. This impacts prequalification, tendering, and contract execution phases.
2. Shorter Lead Times Through Local Manufacturing
Localized production reduces logistics complexity and accelerates project schedules. For example, Sherbiny, through its manufacturing division Atheel, locally assembles MSA’s S5000 gas detectors—ensuring faster delivery and localized support within the Kingdom.
3. Supply Chain Resilience
Local suppliers mitigate risks associated with international shipping, delays, and geopolitical events. By sourcing within Saudi Arabia, organizations benefit from more stable and responsive supply chains.
4. Strategic Supplier Relationships
IKTVA promotes long-term partnerships over transactional engagements. Suppliers like Sherbiny invest in engineering development, training, and infrastructure—offering consistent value throughout the lifecycle of the project.
5. Alignment with Vision 2030 and ESG Goals
Procurement decisions that favor local capability development directly support Vision 2030, workforce nationalization, and broader sustainability objectives.
Sherbiny’s Role in Supporting IKTVA
As a Saudi company with over three decades of experience in industrial solutions, Sherbiny is fully aligned with IKTVA’s priorities. Our contributions include:
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Local Manufacturing via Atheel: Assembly and production of advanced fire and gas detection systems, including MSA’s S5000 gas detector.
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Certified 9COM Vendor Status: Sherbiny is an officially approved vendor on Aramco’s 9COM system, authorized to supply key engineered products and systems across instrumentation, safety, and mechanical categories.
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Technical Training and Seminars: Delivering specialized knowledge-sharing events in collaboration with international OEM partners.
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Workforce Nationalization: Training and employing Saudi engineers and technicians across design, assembly, and commissioning.
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Service and Maintenance Infrastructure: Providing in-Kingdom support to reduce response time and lifecycle costs.
IKTVA has become a defining factor in Saudi Arabia’s industrial procurement strategy. For project owners and procurement teams, selecting a supplier aligned with IKTVA is no longer optional—it is a prerequisite for competitiveness, compliance, and long-term value. Sherbiny is committed to helping clients meet these expectations through localized solutions, certified manufacturing, and a deeply rooted understanding of the Kingdom’s industrial ecosystem.
For more information about our IKTVA-aligned capabilities or to discuss your procurement needs, contact Sherbiny.
