Aramco has signed 145 agreements and Memoranda of Understanding (MoUs) valued at around $9bn at the In-Kingdom Total Value Add (iktva) Forum and Exhibition 2025.
The agreements and MoUs are expected to advance the localisation of goods and services in Saudi Arabia, boosting local content in the supply chain and fostering collaboration.
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.
Aramco signs In-Kingdom Total Value Add Forum 2025 deals
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 was formed to develop and commercialise a broad range of composite products.
Meanwhile, the NMDC fabrication yard will provide maritime engineering, equipment, material manufacturing and fabrication services.
The iktva Forum and Exhibition is taking place under the patronage of Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Province, from January 13 to 16 under the theme of “Ecosystem of Opportunities”.
The Governor opened the event during a ceremony also attended by Prince Abdulaziz bin Salman Al-Saud, Minister of Energy, and Prince Saud bin Bandar bin Abdulaziz, Deputy Governor of the Eastern Province.
The event focuses on showcasing the evolution of the local supply base, the realisation 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 per cent in 2015, when iktva began, to 67 per cent in 2024.
Wail A. Al Jaafari, Aramco Executive Vice President of Technical Services, said: “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.”
The intent of the program is to achieve a 70 per cent 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 localisation opportunities have been identified within 12 sectors, with an estimated annual market size of $28bn.
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 $9bn.
These facilities cover different sectors such as:
- Chemicals
- Non-metallics
- IT
- Electrical and instrumentation
- Static and rotating equipment
- Drilling
- Fire protection systems
These investments have resulted in 47 products being manufactured for the first time in Saudi Arabia.
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