IKTVA and Local Content Requirements for Steel in Saudi Arabia
How local content rules affect steel procurement in Saudi Arabia: Aramco's IKTVA programme, LCGPA government procurement rules, local product lists and what suppliers can document.
Saudi Steel Work Editorial Team · · 3 min read
Short answer: Local content in Saudi Arabia is promoted through Aramco's IKTVA programme, which scores suppliers on in-Kingdom value creation, and through the Local Content and Government Procurement Authority (LCGPA), which sets rules and preferences for government procurement, including mandatory local products lists. For steel buyers, this can favour locally produced or processed steel and suppliers with strong in-Kingdom spending.
Localisation is a central Vision 2030 objective. For steel suppliers and buyers, local content can influence tender evaluation and supplier choice.
IKTVA (Aramco)
Aramco launched the IKTVA programme in 2015 to increase in-Kingdom value creation across its supply chain. Suppliers receive an IKTVA score based on factors such as local spending on goods and services, Saudi workforce and training, and supplier development. Higher scores can improve competitiveness in Aramco tenders. Other companies have adopted similar programmes.
LCGPA (government procurement)
The Local Content and Government Procurement Authority sets local content policies for government entities, including:
- Price preferences for local products
- Mandatory lists of products that must be bought locally when available
- Local content requirements in certain contracts
Lists and rules are updated, so check current publications from LCGPA.
What it means for steel
- Locally produced long products and certain fabricated items may be preferred or required
- Local processing (cutting, fabrication, coating) can add value even when base material is imported
- Documentation of origin and local value becomes part of the bid
Supplier documentation buyers may request
- Certificate of origin
- Local content certificate or score where applicable
- Manufacturer details and location
- Evidence of in-Kingdom processing
Balancing local content with specification
Local content never overrides technical requirements — material must still meet the specification and come with proper certificates (mill test certificates). Where locally produced options don't exist, imports with local processing may be the best route (local vs imported steel).
Note: this is a general overview; consult official LCGPA and client documentation for binding requirements.
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