Saudi Aramco has secured 145 agreements and memorandums of understanding valued at $9 billion during the opening of the In-Kingdom Total Value Add Forum and Exhibition 2025. These deals aim to boost the localization of products and services in Saudi Arabia, enhancing the local supply chain.
The agreements support the objectives of the iktva program, which focuses on improving supply chain efficiency and increasing local content in Aramco’s operations. This initiative is vital for diversifying the energy industry and keeping 70% of procurement spending within the country, benefiting local businesses.
On the first day of the forum, 210 localization opportunities across 12 sectors were identified, with a market value of $28 billion, crucial for reducing import dependence. Aramco President and CEO Amin Nasser highlighted the company’s progress, noting a rise in local content from 35% in 2015 to 67% in 2024.
“Since launching iktva in 2015, we’ve made significant strides,” Nasser stated, emphasizing the program’s success in adding over $240 billion to Saudi Arabia’s GDP and creating 350 local manufacturing facilities.
These facilities span various sectors, including chemicals and IT, leading to the first-time manufacturing of 47 products in Saudi Arabia. Saudi Energy Minister Prince Abdulaziz bin Salman announced plans for uranium enrichment and sales to secure energy resources, while also stressing the future development of advanced chemicals.
The energy minister also mentioned potential collaborations with Egypt, with a roadmap for joint ventures expected in February. Saudi Investment Minister Khalid Al-Falih discussed the importance of incentives for the industrial sector to achieve Vision 2030, which will enhance local supply chains.
The forum also launched ASMO, a venture between Saudi Aramco Development Co. and DHL, aiming to revolutionize procurement and supply chains in the Middle East and North Africa. Additionally, new facilities at King Salman Energy Park and Ras Al-Khair were inaugurated, focusing on composite products and maritime engineering services.
Taking place in Dammam, the iktva Forum runs from January 13-16, showcasing projects and collaborations that support Saudi Arabia’s industrial growth and supply chain development.