Vision 2030 Industrial Expansion: European Manufacturer Enters Saudi Market

Client Profile

A German precision engineering manufacturer with €550 million in annual revenue targeting Saudi Arabia's industrial localisation programme (In-Kingdom Value Add — IKVA).

Business Challenge

Saudi Aramco's In-Kingdom Value Add (IKTVA) programme requires suppliers to source a minimum percentage of goods and services from within Saudi Arabia. The client's existing export model — manufacturing in Germany, shipping to Saudi Arabia — did not qualify for IKTVA points, limiting their ability to compete for Aramco tier-1 contracts.

Strategic Solution

ILS Consultancy structured a joint venture between the client and a Saudi strategic partner (a Saudi industrial conglomerate with IKTVA certification), established within SPARK (King Salman Energy Park) Special Economic Zone. We managed the entire JV structuring, including shareholder agreement drafting, MISA licensing, SPARK licensing, Aramco IKTVA prequalification, and financing coordination with a Saudi development bank.

Outcome

The SPARK facility achieved IKTVA certification at 70% (above Aramco's 70% target). The JV secured three Aramco framework agreements in its first year of operation. The client's Saudi revenues grew from €8 million (export only) to €47 million (combined export + in-Kingdom production) within 24 months.

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