Saudi Aramco stated that its localization program in the supply chain has achieved a target of 70 percent domestic content, thereby highlighting the drive by the company to intensify domestic industrial capacity.
State energy giant added that the iktva program has contributed more than $280 billion to the Saudi Arabian economy since its launch and that procurement expenditure has been made into local manufacturing, investment, and job creation.
Aramco intends to increase local content in its sourcing of goods and services to 75 percent by 2030 as part of a strategy to enhance supply chain resilience and contribute to long-term economic diversification.
In reforms under the Vision 2030, Saudi Arabia is speeding up manufacturing and supply chain development domestically to diversify the economy beyond oil and to generate employment in the private sector.
Amin H Nasser, President and CEO of Aramco, said, “I am immensely proud of the transformational effect iktva has had on Aramco and its positive impact on Saudi Arabia’s economy.”
He reported, This announcement marks a major milestone in the program’s journey and reflects an important leap in the Kingdom’s industrial development, which is largely aligned with our ambitious national vision.”
Nasser informed that iktva is one of the pillars of the Aramco strategy, aiming to create a competitive national industrial ecosystem to contribute to the energy sector and help to support the overall economic growth, and provide thousands of employment opportunities to Saudi nationals.
He said, “By localizing the supply chain, iktva ensures operational reliability while mitigating disruption. Its 10-year cumulative impact reflects the depth and sustainability of the value it continues to generate.”
The program has discovered more than 200 localization opportunities in 12 sectors that symbolize an annual market of approximately $28 billion.
Aramco indicated that these have prompted over 350 investments by companies in 35 countries, which are supported by $9 billion in capital, allowing 47 strategic products to be produced locally in the first place.
The initiative has equally aided in the process of developing over 200,000 direct and indirect jobs throughout the Kingdom, which has contributed to the growth of the industry in Saudi Arabia.
The local content initiatives in Saudi Arabia are directed at retaining more expenditure in the domestic economy by promoting firms to produce goods, sourcing services, and building expertise in domestic-based sources rather than depending on foreign suppliers.
