Prime Highlights:
Saudi Aramco secures 145 agreements valued at $9 billion on the first day of the iktva Forum 2025.
These agreements will boost local content in Saudi Arabia’s energy supply chain and foster industry collaboration.
The iktva program is central to the Kingdom’s goals of reducing imports and retaining 70% of procurement spending within Saudi Arabia.
Key Background:
On the opening day of the In-Kingdom Total Value Add (iktva) Forum and Exhibition 2025, Saudi Aramco secured 145 agreements and memorandums of understanding (MOUs) worth an estimated $9 billion. These agreements mark a significant step forward in strengthening the Kingdom’s industrial capabilities, focusing on the localization of products and services within Saudi Arabia. By expanding local content in the energy sector’s supply chain, the deals aim to support economic growth, enhance supply chain efficiency, and promote sustainable industrial development.
The agreements align with the core objectives of the iktva program, which seeks to localize procurement, retain spending within Saudi Arabia, and foster collaboration across sectors. A key aspect of the program is achieving the strategic target of maintaining 70% of procurement spending in the Kingdom, providing a substantial benefit to local businesses.
During the forum, Saudi Aramco President and CEO Amin Nasser highlighted the company’s significant progress, noting that the local content score for Aramco’s procurement of goods and services had reached 67% in 2024, a substantial increase from 35% in 2015. Nasser emphasized that iktva’s success lies in its ability to generate value for all stakeholders, ensuring a more resilient and competitive energy sector in Saudi Arabia.
The first day of the event also showcased 210 localization opportunities spanning 12 sectors, collectively worth an estimated $28 billion annually. These opportunities are poised to stimulate long-term industrial growth and reduce reliance on imports. Since the program’s launch in 2015, iktva has contributed more than $240 billion to Saudi Arabia’s GDP and led to the creation of 350 local manufacturing facilities.
Saudi Energy Minister Prince Abdulaziz bin Salman discussed the Kingdom’s ambitious plans to monetize its mineral resources, including uranium, to support energy security. He also underscored the importance of advancing the petrochemical sector and exploring opportunities for collaboration with Egypt in the coming months. The iktva Forum continues through January 16, 2025, in Dammam, with a focus on critical infrastructure projects, industrial collaborations, and efforts to support Saudi Arabia’s Vision 2030.
