Aramco Inks $9 Billion in Deals to Boost Local Manufacturing

January 14, 2025 — Aramco, a global energy and chemicals giant, has signed 145 agreements and Memoranda of Understanding (MoUs) valued at approximately $9 billion at the In-Kingdom Total Value Add (iktva) Forum & Exhibition 2025. These deals aim to significantly boost local content within Aramco's supply chain and foster greater collaboration with local and global partners.

The iktva Forum, held under the patronage of His Royal Highness Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Province, focuses on strengthening Saudi Arabia's domestic supply chain ecosystem.

Significant Progress in Local Sourcing

Aramco has made significant strides in localizing its procurement. Its iktva score, measuring the proportion of locally sourced goods and services, has nearly doubled from 35% in 2015 to 67% in 2024. The program aims to reach 70%, further increasing exports of locally made products and creating jobs for young Saudis.

Key Announcements and Inaugurations

The first day of the forum saw several key announcements:

• ASMO Launch: A new joint venture between Saudi Aramco Development Company and DHL, named ASMO, has commenced operations in Riyadh. ASMO will focus on transforming procurement and supply chain operations across the MENA region.
• New Manufacturing Facilities: Two new manufacturing facilities were inaugurated: the Novel Non-Metallic Solutions facility at King Salman Energy Park (a joint venture between Aramco and Baker Hughes focusing on composite products) and the NMDC Offshore fabrication yard at Ras Al Khair (providing maritime engineering and fabrication services).

Driving Economic Diversification

Wail A. Al Jaafari, Aramco Executive Vice President of Technical Services, emphasized iktva's role in driving domestic value creation and economic diversification. "Since its launch in 2015, iktva has set new standards by creating best-in-class infrastructure, streamlining business processes, creating new opportunities, and building a world-class supply chain," he said.

$28 Billion Market Opportunity

The iktva program has identified 210 localization opportunities across 12 sectors, representing an estimated annual market size of $28 billion.

iktva's Impact to Date

Since its inception, iktva has facilitated the establishment of 350 new local manufacturing facilities with a total capital expenditure exceeding $9 billion. These facilities span diverse sectors, including chemicals, non-metallics, IT, and more, leading to the local manufacturing of 47 products for the first time in Saudi Arabia. The event also included the presentation of iktva excellence awards to 12 winning companies across various categories. The iktva Forum & Exhibition continues until January 16, exploring further avenues for developing the domestic supply chain and fostering collaboration.

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