Made in Saudi and iktva highlight achievements of products manufactured in-Kingdom
Launched in early 2021, the Made in Saudi program is fully aligned with Aramco’s iktva strategy.
The Made in Saudi program, which was launched in early 2021, is fully aligned with Aramco’s localization strategy and the In-Kingdom Total Value Add (iktva) program. In support of Saudi Vision 2030 and the ecosystem of local manufacturers, the Made in Saudi program will create brand recognition, trusted high quality standards, and a preference for local products.
Since the iktva program’s inception in 2015, Aramco has delivered remarkable localization achievements while providing a powerful and supportive environment for the Kingdom’s ambitious economic goals. To date, Aramco has attracted nearly 500 investments with a total investment value of more than $6.5 billion. Some of these investments are already realized and manufacturing new and innovative products locally.
Profound impact on economy
Localization of manufacturing has already had a profound impact on the Saudi economy. Encouraging businesses to locate their manufacturing facilities in the Kingdom has created thousands of jobs for Saudi citizens, and new revenue streams to power the Kingdom’s economic growth. As government agencies and industrial partners, such as Aramco, continue to drive localization, the benefits of a sustainable local supply chain will expand even further, driving efficiency and resilience while creating jobs, reducing costs, and improving delivery times for goods and services utilized in Saudi Arabia’s vibrant industrial sector.
To date, localization has produced the following results:
• 468 investments with $6.5 billion in capital expenditure
• 170 opportunities with $14 billion annual market size
• 93 realized investments from 19 countries, worth $1.2 billion, resulting in the creation of 5,600 direct jobs. Data science and machine learning program helps spur on Digital Transformation Strategy
Identifying future opportunities
“Localization benefits the company by reducing risks of shutdown if key parts are not available when we need them,” Al-Thaaly said. The clearest example of this benefit came when the COVID-19 pandemic began, as localized manufacturing ensured that we had the goods and services we needed when shipping items was difficult, if not impossible.
“We are now starting to see our local supply chain mature and reach a sustainable critical mass,” Al-Thaaly said. “The iktva program has transformed our interaction with suppliers by providing them with the confidence to proactively localize goods and services with an increasing level of complexity. As part of the iktva program, we are now identifying future opportunities and promoting investment in these areas. We look at our overall spend and how much we are able to purchase in the Kingdom, plus we focus on the gap, which is everything else that we historically purchase from outside the Kingdom. By identifying those gaps, we showcase investment opportunities for local and foreign investment in the Kingdom.”