Saudi Arabia's In-Kingdom Total Value Add (iktva) programme has attracted more than 500 investments so far with a capital value of around $7 billion, Aramco Chairman Yasir bin Othman Al-Rumayyan has said.

The investments include more than 100 projects under operation that are contributing to the Kingdom's GDP and creating thousands of new jobs, a Saudi Press Agency (SPA) report quoted him as saying.

Al-Rumayyan stressed that Aramco has several programmes and initiatives that support the localisation of technologies and production, where the company seeks to increase investment, economic diversity and enhance job opportunities inside the Kingdom.

The localisation programme aims to localise 70 per cent of the total expenditure, create a business environment that provides thousands of jobs and empower exports of the Saudi energy sector products, he said in a statement to SPA, on the sidelines of the In-Kingdom Total Value Add (iktva) Forum that was held in Dahran.

He said: “Since the establishment of the plan in 2015, benefits accumulated in enhancing partnerships between local firms and their international leading counterparts, where these partnerships seek to enhance cooperation, alignment and overcome any operational challenges.”

ARAMCO SIGNS 50 MOUS

Meanwhile, Aramco’s supply chain resilience has been further enhanced by the signing of 50 new memoranda of understanding (MoUs) at the iktva Forum.

Major signings include:

• Schlumberger – Partnership on climate leadership and digitalisation through localisation initiatives;

• Cameron/TechnipFMC/Baker Hughes – Wellhead equipment localisation procurement agreements;

• Larsen & Toubro – Pressure vessel fabrication localisation;

• Sutherland Global Services – Smart City services localisation;

• Tanajib Cogeneration Power Company – Tanajib cogeneration and desalination agreement

• Honeywell – Localisation of process automation solutions;

• Alfanar Company - Carbon fibre investment collaboration

The iktva programme aims to drive domestic value creation, maximise long-term economic growth and diversification, and build a world-class supply chain that facilitates the development of a diverse, sustainable and a globally competitive energy sector in the Kingdom, at a time when global supply chains have been disrupted by the Covid-19 pandemic.

As a result of iktva, 59 per cent of Aramco’s spending in 2021 was directed to domestic suppliers, up from 35 per cent in 2015 when the programme was launched.

Held under the theme ‘Paving the way to economic success’, the iktva forum highlighted how partnerships with some of the world’s top energy, logistics, and manufacturing companies continue to enhance the domestic commercial ecosystem and enable the reliable supply of energy to the world.

Amin H Nasser, Aramco President and CEO, said: “It wasn’t possible to foresee the consequences of the Covid-19 pandemic, but iktva helped us to prepare for the disruptions it caused to the global supply chain. Our investment in a diversified network of suppliers has helped us maintain a track record of reliability and iktva continues to prove its value by contributing to an increasingly vibrant, dynamic and business-friendly environment in Saudi Arabia.”

The iktva programme has helped establish a competitive industrial base, resulting in exports to more than 40 countries. Meanwhile, local content requirements embedded in thousands of contracts have contributed more than $100 billion to the national economy, said a statement.

At the same time, iktva has attracted more than 540 investments to Saudi Arabia from 35 countries.

Innovation and sustainability are essential components of the iktva model, which embraces new technologies, encourages efficient logistics networks and emphasises the Circular Carbon Economy framework.