Aramco signs $9 billion in localisation agreements

DHAHRAN, January 14, 2025 – Saudi Aramco has signed 145 agreements and MoUs valued at around USD 9 billion at the In-Kingdom Total Value Add Forum & Exhibition 2025 in Dhahran, Saudi Arabia, the company announced on Monday.

The forum aims to raise Aramco’s IKTV score to 70%, showcase the evolution of the domestic supply base and identify areas to develop Saudi Arabia’s supply chain further. Aramco’s IKTVA score has increased from 35% in 2015 to 67% in 2024.

Saudi Arabia’s IKTVA programme aims to increase the amount of goods and services produced in the country and create jobs for Saudi nationals. Companies operating in Saudi Arabia are given an IKTVA score based on the local content of the goods and services they procure, as well as the amounts spent on salaries paid to Saudi nationals, training and development and R&D. Higher IKTV scores make it more likely for companies to be selected by Aramco as contractors.

“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 driving domestic value creation, economic growth and diversification,” said Wail A. Al Jaafari, Aramco’s executive vice-president of Technical Services.

Under the IKTVA programme, Saudi Arabia calculates that it has established 350 new manufacturing facilities with a total capex of more than USD 9 billion, in sectors that include oil and gas and industrial equipment, chemicals, instrumentation and IT.

Read our latest insights on: