Day one of the In-Kingdom Total Value Add (IKTVA) Forum and Exhibition kicked off yesterday with Saudi Aramco inking 145 agreements and MoUs worth USD 9 bn with local and international players, according to a statement. The new initiatives come in a bid to bolster the localization of goods and services, while increasing Saudi contributions to supply chains and promoting partnerships.

Fresh JVs and facilities:

  • ASMO, a joint venture between Saudi Aramco Development Company and DHL, commenced operations in Riyadh. The JV looks to enhance procurement and supply chains in the region;
  • Novel Non-Metallic Solutions — an Aramco and Baker Hughes JV — opened a plant at King Salman Energy Park to develop and commercialize composite products;
  • The NMDC Offshore fabrication yard in Ras Al Khair will offer maritime engineering, equipment, material manufacturing and fabrication services.

IN CONTEXT- What is IKTVA, anyway? The Aramco-backed program looks to achieve a 70% IKTVA localization score in a bid to build resilience in the Saudi economy while also increasing exports of locally made products and creating jobs. To date, the initiative has facilitated the establishment of 350 manufacturing plants at a combined capex exceeding USD 9 bn, producing 47 new domestic products for the chemicals, non-metallics, IT, and other sectors. Aramco's localization score rose from 35% in 2015 to 67% in 2024, with 210 new prospects identified across 12 sectors, representing an estimated USD 28 bn in per-year market size.

KUDOS- 12 companies received IKTVA excellence awards at the event, including SLB, Nesma & Partners, Arabian Drilling Company, Zahid Group, Arabian Rig Manufacturing, Excellence logging, Saudi Valves Manufacturing, Hyundai Engineering, Halliburton, Baker Hughes, Jana Marine, and Jeddah Cables, for contributions to localizing manufacturing and services, Saudization, training, R&D, supplier development, exports, and ESG.

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