epssupport

June 12, 2025

5 MIN READ

Operationalizing IKTVA: Saudi Arabia Compliance to Competitive Advantage

Operationalizing IKTVA

In Saudi Arabia’s rapidly evolving industrial landscape, localization is no longer a regulatory checkbox — it’s a growth strategy.

At the heart of this shift is In-Kingdom Total Value Add (IKTVA), Aramco’s flagship localization program that has become a cornerstone for suppliers aiming to remain competitive and compliant in the Kingdom.

Operationalizing IKTVA

As companies work to align with Vision 2030, IKTVA offers a framework for investing in local capabilities, knowledge transfer, workforce development, and domestic manufacturing.

But as many companies quickly discover, operationalizing IKTVA requires more than policy awareness — it demands strategic execution across procurement, human resources, and even intangible asset management.

EPS Support plays a pivotal role in helping international and regional firms move from IKTVA awareness to measurable advantage, integrating it deeply within their operational models through expert consulting, contracting capabilities, and brand/IP valuation strategies.

The IKTVA Challenge: Navigating Beyond the Basics

While the IKTVA framework provides clear scoring metrics — including local workforce employment, training expenditures, and investment in R&D — the implementation journey is often complex.

Key Challenges Include:

  • Misaligned supply chains with low local sourcing potential.

  • Lack of structured training programs or knowledge transfer protocols.

  • Overreliance on imported IP with no valuation or localization planning.

  • Non-compliant procurement systems that lack transparency or IKTVA score impact analysis.

📊 As of Q1 2025, over 60% of new vendors attempting to qualify under Aramco’s IKTVA system failed to meet core local content criteria — up from 52% in 2023.

The cost of non-compliance isn’t just a missed certification — it’s lost access to billions in potential contracts across oil & gas, petrochemicals, construction, and EPC megaprojects.

EPS Support: From Insight to Action

EPS Support has emerged as a Saudi Arabia industrial trading company and strategic consulting partner for firms navigating IKTVA with both urgency and ambition.

Operationalizing IKTVA

Our approach is built on three foundational pillars:

1. End-to-End Local Content & IKTVA Consultation

EPS works with organizations at every stage — from readiness assessment to action plan design and execution. Our services include:

  • IKTVA gap analysis and benchmarking

  • Scoring optimization roadmaps

  • Workforce nationalization support (including Saudization strategy)

  • Documentation alignment for audit readiness

  • Ongoing score monitoring and reporting

🛠️ EPS Support has helped over 40 suppliers in 2024 improve their IKTVA scores by 25–45%, unlocking prequalification with Aramco and SABIC.

Saudi Arabia

2. Integrated Contracting Division

IKTVA doesn’t stop at paperwork. Implementation depends on boots on the ground — and that’s where EPS Support’s newly launched Contracting Division steps in.

We provide:

  • Manpower mobilization with Saudi nationals

  • Site setup and facility localization

  • Procurement planning for in-Kingdom sourcing

  • Aramco audit compliance at every stage of project execution

This hybrid model — where consulting meets execution — is what makes EPS distinct in the KSA industrial ecosystem.

3. Brand & IP Valuation for IKTVA R&D Scores

EPS Support, in strategic partnership with the European Brand Institute (EBI), is pioneering IP localization services as part of IKTVA R&D scoring.

Why this matters:

  • Companies using non-valued foreign IP see their R&D metrics suffer.

  • EPS Support helps evaluate, register, and localize IP — from trademarks to patents — to meet regulatory expectations.

  • This creates defensible value for brands and improves IKTVA R&D positioning.

🔍 2025 data shows that only 18% of companies applying for IKTVA scoring in R&D provided recognized IP valuation documentation — an area EPS is closing the gap on rapidly.

From Compliance to Competitive Advantage

Companies that treat IKTVA like a strategic lever — not a burden — are winning in Saudi Arabia’s industrial expansion.

Here’s what success looks like:

✅ Greater access to Aramco and SABIC procurement frameworks

✅ Higher contract win rates through proven IKTVA score improvements

✅ Better brand reputation through local investment and job creation

✅ Competitive advantage through localized innovation and protected IP

EPS Support Case Snapshot

Client: European EPC contractor entering the KSA oil & gas space

Problem: Incomplete IKTVA documentation, foreign-trained staff, no IP portfolio

EPS Solution:

  • Conducted a 6-week IKTVA audit & roadmap delivery

  • Localized staffing plan via EPS manpower division

  • Registered the client’s technical process IP locally and valued it under ISO standards

    Outcome: Qualified for Aramco’s preferred vendor list and increased IKTVA score by 39% in one quarter

Final Thoughts

With IKTVA enforcement tightening and industrial competition growing, the time to operationalize localization is now.

From vendor registration with Aramco to strategic sourcing in Saudi Arabia, EPS Support ensures your company doesn’t just comply — it thrives.

📞 Ready to localize with purpose?

EPS Support is your go-to partner for IKTVA consulting, contract execution, and brand/IP valuation in alignment with Saudi Vision 2030.

 

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