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Aramco signs $9 billion deals at iktva Forum to boost local supply chain
The deals aim to localize goods and services in Saudi Arabia, strengthening the supply chain and boosting collaboration.
Aramco, the Saudi-based energy and chemicals giant, signed 145 agreements and memoranda of understanding (MoUs) valued at approximately $9 billion during the In-Kingdom Total Value Add (iktva) Forum & Exhibition 2025, which takes place from January 13-16.
The deals aim to further localize goods and services within Saudi Arabia, strengthen the domestic supply chain, and foster greater collaboration. The event, held under the patronage of Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Province, and opened in a ceremony attended by Energy Minister Prince Abdulaziz bin Salman Al-Saud, showcased several key developments.
ASMO, a joint venture between Saudi Aramco Development Company and DHL, has officially launched operations in Riyadh. Its focus is on transforming procurement and supply chain management across the MENA region.
Two new facilities were also inaugurated during the event: a Novel Non-Metallic Solutions facility at King Salman Energy Park, a joint venture between Aramco and Baker Hughes focused on developing composite products, and an NMDC Offshore fabrication yard at Ras Al Khair, which will provide maritime engineering and manufacturing services.
The iktva Forum & Exhibition, themed “Ecosystem of Opportunities,” highlighted the growth of the local supply base, key anchor projects, and opportunities to further develop the domestic supply chain. Aramco’s iktva score, which measures the proportion of locally sourced goods and services, increased significantly from 35% in 2015 to 67% in 2024.
“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,” said Wail A Al Jaafari, Aramco Executive Vice President of Technical Services.
“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 program aims to achieve a 70% iktva score, boost exports of locally made goods and services, and create job opportunities for young Saudis. The iktva initiative has identified 210 localization opportunities across 12 sectors, with an estimated annual market size of $28 billion.
Since its inception, iktva has facilitated the establishment of 350 new local manufacturing facilities, with a total capital expenditure surpassing $9 billion. These facilities cover sectors such as chemicals, non-metallics, IT, electrical and instrumentation, static and rotating equipment, drilling, and fire protection systems. As a result, 47 products are now being manufactured in Saudi Arabia for the first time.
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