Aramco iktva is Saudi Aramco’s program for measuring how much value its suppliers add inside the Kingdom, and Aramco states that taking part is required to do business with it. The Local Content certificate is a different document: it is issued by the Local Content and Government Procurement Authority (LCGPA) and is used mainly in government procurement. The two differ in owner, method and purpose, so a fire and security supplier that targets both Aramco and government buyers has to manage each one separately.
Key takeaways
- Aramco launched iktva (In-Kingdom Total Value Add) in 2015 to raise localization across its supply chain.
- A supplier first sets a baseline through the iktva survey, has it certified by one of the program’s approved audit firms, then builds a five-year action plan.
- The enterprise Local Content certificate is issued by LCGPA after review by an LCGPA-accredited review office.
- The two certificates serve different purposes, and Aramco’s pages do not say that one replaces the other.
- Both scores are driven by similar inputs: Saudi salaries, local purchasing, training and supplier development.
In this article
- What is the Aramco iktva program?
- How is the Aramco iktva score calculated?
- Taking part in iktva: baseline, then a five-year plan
- What is the enterprise Local Content certificate?
- iktva vs the Local Content certificate: what is the difference?
- What does Aramco iktva mean for fire and security suppliers?
- Where do suppliers and subcontractors fit?
- Common mistakes with Aramco iktva
- iktva Forum 2027
- Frequently asked questions
- Conclusion
What is the Aramco iktva program?
iktva stands for In-Kingdom Total Value Add. Aramco describes it as its flagship localization program, built to drive supply-chain efficiency and to develop a diverse, globally competitive energy sector in Saudi Arabia. Aramco’s Elements magazine reports that the program was launched in 2015.
Aramco’s iktva page sets a goal of retaining 75% of its procurement spend in-Kingdom and reports that 70% of procurement spend contributed to local content as of early 2026. These are program-level figures for Aramco, not a score any single supplier is required to reach.
For suppliers, the practical point is stated plainly on iktva.sa: participation is required for doing business with Saudi Aramco. It is not an optional extra for companies that supply Aramco facilities or work as subcontractors on its projects.
How is the Aramco iktva score calculated?
The current official calculation sits in the iktva package (survey plus supporting documents) on the program’s downloads page. We did not find the formula published on Aramco’s public pages, so the breakdown below follows the 2018 explanation by Al Tamimi & Company. Always work from the official package before running real numbers.
According to that explanation, five elements are added together and divided by the company’s revenue from Aramco:
| Element | What it means for a fire and security supplier |
|---|---|
| Localized goods and services | Purchases from suppliers and manufacturers inside the Kingdom, such as pipe, cabinets and locally performed work |
| Salaries paid to Saudis | Pay for Saudi engineers, technicians and administrative staff |
| Training and development of Saudis | Technical training on installation, maintenance and programming |
| Supplier development spend | Support that helps local suppliers improve quality or capacity |
| Local research and development | R&D spending carried out in the Kingdom |
In practice, a supplier that imports everything and relies only on non-Saudi staff will score low, even with competitive prices.
Taking part in iktva: baseline, then a five-year plan
iktva.sa sets out two steps:
- Baseline: download the iktva package, complete the survey from the company’s financial data, have it certified by one of the program’s approved audit firms, and upload the certified documents through the survey submission form.
- Action plan: once the baseline is certified, the current score becomes the starting point for a five-year plan prepared with Aramco, showing how the company will raise its ratio.
The approved audit firms are listed on a separate page of the program site; certification from a firm outside that list is not accepted. Before any of this, the company must be registered as an Aramco supplier, which is a separate process through Aramco’s e-Marketplace platform running on SAP Ariba.
What is the enterprise Local Content certificate?
The enterprise Local Content certificate is issued by LCGPA. Version 3 of LCGPA’s guideline for the enterprise-level local content measurement model explains that the score measures what an enterprise spends in the Kingdom through Saudi participation, built from four main components:
- Labor compensation, with Saudi salaries counted in full as local content.
- Goods and services bought from local and foreign suppliers, using each supplier’s sector percentage or approved percentage.
- Depreciation and amortization, treated differently depending on whether assets were made in the Kingdom.
- Capacity building: training Saudis, supplier development and in-Kingdom R&D.
Under the same guideline, the percentage is not final until LCGPA approves it, after an LCGPA-accredited review office checks the form; applications go through LCGPA’s e-services portal. The local content preference regulation published by the Ministry of Finance governs how local content is used in government procurement, including the mandatory list of national products, a price preference for national products, and local content weighting in the financial evaluation of certain contracts.
AZEIDK holds the Saudi Local Content certificate. That certificate belongs to the LCGPA system; iktva is a separate track with Aramco.
iktva vs the Local Content certificate: what is the difference?
| Item | iktva | Local Content certificate |
|---|---|---|
| Owner | Saudi Aramco | Local Content and Government Procurement Authority |
| Main use | Doing business with Aramco | Government procurement under the local content preference regulation |
| Who certifies the data | An audit firm on the program’s approved list | An LCGPA-accredited review office, then LCGPA approval |
| How to submit | Survey submission form on iktva.sa | LCGPA e-services portal |
| After certification | Five-year action plan with Aramco | Certificate stating the enterprise’s local content percentage |
| Shared drivers | Saudi salaries, local purchasing, training, supplier development, R&D | |
Because the drivers overlap, the same financial records feed both files, but each file is prepared and certified on its own owner’s model. Do not assume an LCGPA certificate will be accepted by Aramco in place of an iktva score, or the other way round, unless the tender documents say so.
What does Aramco iktva mean for fire and security suppliers?
Suppliers of fire alarm, fire fighting and CCTV systems often deal in imported products carrying UL or FM approvals. That does not stop them adding value in the Kingdom, because much of the work happens locally: design and calculations, supply and storage, installation, testing and commissioning, and maintenance. All of that means local salaries, purchases and services.
What raises the score in practice?
- Hiring Saudi engineers and technicians for design, installation and maintenance, with salaries clearly recorded.
- Buying from manufacturers and suppliers in the Kingdom where a compliant product exists, with clean invoices.
- Documented technical training for Saudi staff on the systems the company installs.
- Accounts organized so the audit firm can trace each element without guesswork.
What iktva does not change
An iktva score does not replace technical requirements. A product going into an Aramco facility, or any other project, still needs its datasheet, the approvals the specification calls for, and a material submittal the consultant accepts. Examples are in our technical documents library. Localization is never a reason to swap a listed product for a non-compliant one.
Where do suppliers and subcontractors fit?
Many fire and security companies do not contract with Aramco directly; they supply a main contractor working on Aramco projects. Aramco notes on its iktva page that many of its major suppliers are localizing their own supply chains, so a main contractor may ask its suppliers for local content data or registration documents depending on its contract terms. The roles are explained in our article on the difference between manufacturer, distributor, supplier and contractor.
Through AZEIDK’s technical supply of fire safety systems, we prepare product documents with each offer, from datasheets to approval certificates, which form part of a supplier file for any buyer, together with the documentation and final handover package at project close.
Common mistakes with Aramco iktva
- Mixing up the certificates: submitting an LCGPA certificate where an iktva score is requested, or the reverse.
- Using a non-approved auditor: certification must come from a firm on the program’s list.
- Late registration: iktva does not replace Aramco supplier registration, and Aramco states that registration does not guarantee business.
- Messy financial data: if local and imported purchases cannot be separated, the audit takes longer and the score suffers.
- Ignoring the five-year plan: the program tracks improvement, not a one-off number.
iktva Forum 2027
The program site announces the iktva Forum and Exhibition 2027 from 11 to 14 January 2027 at Dhahran Expo. It is a chance for suppliers to see published localization opportunities and hear Aramco’s requirements first-hand.
Frequently asked questions
Is Aramco iktva mandatory?
iktva.sa states that participation is required for doing business with Saudi Aramco.
Does a Local Content certificate replace iktva?
Aramco’s pages do not say so. The certificate is issued by LCGPA; iktva is Aramco’s own program, certified by its approved audit firms.
Who certifies the iktva survey?
One of the audit firms on the approved list published on the program site.
What does iktva stand for?
In-Kingdom Total Value Add.
Does AZEIDK have an iktva score?
This article states no iktva score for AZEIDK. AZEIDK holds the Saudi Local Content certificate, which is a different certificate.
Does Aramco registration guarantee contracts?
No. Aramco states that registering and qualifying does not guarantee future business.
Conclusion
Aramco iktva is Aramco’s own localization program: it measures a supplier’s in-Kingdom value and tracks improvement through a five-year plan. The Local Content certificate is LCGPA’s tool for government procurement. A fire and security supplier can do well under both by keeping clean financial records, hiring and training Saudi staff, and buying locally where a compliant product exists, without compromising the approvals the specification requires.
Preparing a supply offer for an energy-sector or government project? Send us the specification and BOQ, and our team will prepare the offer and product documents. Talk to the AZEIDK team
