Aramco, one of the world’s leading integrated energy and chemicals companies, has signed 145 agreements and Memoranda of Understanding (MoUs) valued at around $9 billion at the In-Kingdom Total Value Add (iktva) Forum & Exhibition 2025.
These agreements and MoUs aim to advance the localization of goods and services in Saudi Arabia, boosting local content in the supply chain and fostering collaboration.
Day one of the event featured a major announcement that ASMO, a joint venture between Saudi Aramco Development Company and DHL, had started operations in Riyadh to transform the procurement and supply chain landscape in the MENA region.
During the event, the Novel Non-Metallic Solutions facility at King Salman Energy Park and NMDC Offshore fabrication yard at Ras Al Khair were also inaugurated. Novel, a joint venture between Aramco and Baker Hughes, was formed to develop and commercialize a diverse range of composite products. Meanwhile, the NMDC fabrication yard will offer maritime engineering, equipment, material manufacturing and fabrication services.
Under the patronage of His Royal Highness Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Province, the iktva Forum & Exhibition 2025 is being held from January 13-16, revolving around the theme “Ecosystem of Opportunities”.
The Governor opened the event during a ceremony also attended by His Royal Highness Prince Abdulaziz bin Salman Al-Saud, Minister of Energy, and His Royal Highness 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 realization of enablement anchor projects, and collaboration areas to enhance the domestic supply chain ecosystem. Aramco’s iktva score within its procurement of goods and services has increased from 35 percent in 2015, to 67 percent in 2024.
Wail A. Al Jaafari Executive Vice President of Technical Services – Aramco
“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 intend of the program is to attain a 70 percent iktva score, while boosting 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 enabled the establishment of 350 new local manufacturing facilities, with a total CAPEX of more than $9 billion. These facilities span 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.
