Aramco, one of the world’s leading integrated energy and chemicals companies, recently signed 145 agreements and memoranda of understanding (MoUs) valued at around $9 billion at the In-Kingdom Total Value Add (iktva) Forum & Exhibition 2025. The deals are expected to advance the localization of goods and services in Saudi Arabia, boosting local content in the supply chain and fostering collaboration.
“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. The program is actively driving domestic value creation and maximizing economic growth and diversification. iktva is a top priority in Aramco’s long-term planning, as we seek to build on the company’s already high levels of resilience,” stated Wail A. Al Jaafari, Aramco executive vice president of technical services.
Key announcements
The first day of the event featured an announcement that ASMO, a joint venture between Saudi Aramco Development Company and DHL, had commenced operations in Riyadh to redefine the procurement and supply chain landscape in the MENA region.
In addition, the Novel Non-Metallic Solutions facility at King Salman Energy Park and NMDC Offshore fabrication yard at Ras Al Khair were inaugurated during the event.
Novel is a joint venture between Aramco and Baker Hughes, which formed to develop and commercialize a broad range of composite products. Meanwhile, the NMDC fabrication yard will provide maritime engineering, equipment, material manufacturing and fabrication services.
Read| Saudi Arabia’s Energy Localization Forum: 107 agreements worth $27.69 billion signed
Aramco’s iktva score rises to 67 percent
The iktva Forum & Exhibition is taking place under the patronage of His Royal Highness Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Province, from January 13 to 16 under the theme of “Ecosystem of Opportunities”. The event focuses on showcasing the evolution of the local supply base, the realization of enablement anchor projects, and collaboration areas to further develop the domestic supply chain ecosystem.
Aramco’s iktva score within its procurement of goods and services has risen from 35 percent in 2015, when iktva began, to 67 percent in 2024. The intent of the program is to achieve a 70 percent iktva score while increasing exports of locally manufactured goods and services and creating direct and indirect jobs for young Saudis. As part of the iktva program, 210 localization opportunities have been identified within 12 sectors, with an estimated annual market size of $28 billion.
Since its launch, the iktva program has so far enabled the establishment of 350 new local manufacturing facilities, with a total CAPEX of more than $9 billion. These facilities cover different sectors such as chemicals, non-metallics, IT, electrical and instrumentation, static and rotating equipment, drilling, fire protection systems, and others. These investments have resulted in 47 products being manufactured for the first time in Saudi Arabia.
