In a momentous achievement that marks a turning point in Saudi Arabia’s economic evolution, Saudi Aramco has reached a 70% localisation milestone in its supply chain through its flagship In-Kingdom Total Value Add programme. This milestone confirms the company’s commitment not just to energy leadership, but also to driving broad-based economic transformation in the Kingdom. The localisation milestone signifies that a major portion of Aramco’s procurement of goods and services is now sourced within Saudi Arabia, strengthening local industries and kick-starting a new era of domestic capability that supports broader national ambitions.
This milestone aligns with Saudi Arabia’s Vision 2030 blueprint, which seeks to diversify the economy beyond oil revenues, stimulate domestic industry growth, and ensure resilient supply chains that can thrive amidst global uncertainties. Crossing the 70% threshold represents more than just a target achieved; it reflects years of strategic partnership with local businesses, investments in capabilities, and a future-focused mindset that places Saudi talent and enterprises at the heart of economic progress.
What the iktva Programme Is All About
The iktva programme, meaning In-Kingdom Total Value Add, was launched with a clear and ambitious mission to add meaningful economic value within Saudi Arabia by localising the supply chain and building a competitive domestic industrial ecosystem. Rather than relying heavily on imported goods and services, the initiative encourages global and local companies to establish manufacturing facilities, supply services, and invest in the Kingdom’s growing industrial market.
Over time, iktva has evolved into a powerful tool of economic transformation. It influences how business is done by creating a strong domestic supply network, facilitating knowledge transfer, and supporting innovation across multiple sectors ranging from chemicals and metals to machinery and electronics. Through iktva, Saudi Aramco’s procurement spend becomes a catalyst for job creation, skills development, and export-oriented manufacturing that extends far beyond oil and gas.
The Economic Impact Jobs Growth and Investment
One of the most tangible outcomes of this localisation drive has been its remarkable impact on the Saudi economy. Since iktva’s inception, the programme has contributed over 280 billion dollars to the Kingdom’s GDP, showcasing its role as an economic powerhouse within Vision 2030’s strategy. This boost underscores how local content can translate into real wealth, broadening the economic base while reducing dependency on external markets.
In terms of employment, iktva has already generated more than 200,000 jobs across various industries in Saudi Arabia. These are not just direct jobs tied to oil operations, but include countless indirect roles supported by new manufacturing plants, service providers, and supplier networks. The ripple effect has touched communities across the Kingdom, empowering thousands of Saudi nationals with meaningful work opportunities and helping nurture a skilled workforce ready for the challenges of the future.
Additionally, the programme has attracted significant foreign direct investment, connecting Saudi Arabia to global markets and supply chains. Companies from dozens of countries have invested in local facilities, bringing capital, technology, and expertise that further strengthen the Kingdom’s industrial prospects. These investments have enabled the local production of numerous strategic products that were previously imported, enhancing self-sufficiency and export potential.
New Manufacturing and Strategic Products
A key success story within the iktva framework has been the localisation of dozens of strategic products that are now manufactured within Saudi borders for the first time. This achievement signifies not only industrial growth but also a shift toward higher value-added production sectors. Manufacturing these goods locally reduces reliance on foreign suppliers, enhances operational efficiency, and lays the groundwork for future export opportunities that could bring Saudi-made products to global markets.
Saudi Aramco’s role in this endeavour goes beyond procuring materials. The company actively identifies localisation opportunities across key industrial sectors, creating new demand for domestic manufacturing and services. These opportunities have catalysed investments and encouraged companies to set up operations in the Kingdom, further anchoring Saudi Arabia’s position as a regional hub for industrial excellence.
Strengthening the Supply Chain and National Resilience
Achieving a high level of localisation has proven especially beneficial for supply chain resilience. In an era marked by global disruptions such as geopolitical tensions, pandemics, and trade uncertainties, the ability to source critical goods and services locally offers a significant strategic advantage.
By localising a majority of its procurement, Saudi Aramco has reduced its exposure to external vulnerabilities, ensuring continuity of operations even when global supply chains are stressed. This strategy not only safeguards energy infrastructure but also allows the Kingdom to better anticipate and manage challenges that could otherwise disrupt production and essential services.
Workforce Development and Local Talent Empowerment
The success of localisation is deeply tied to investments in people. Saudi Aramco’s strategy under iktva places strong emphasis on workforce development, equipping Saudi nationals with skills and training that match the evolving demands of industry. Collaborations with educational institutions, vocational training centres, and private sector partners have expanded opportunities for upskilling and career advancement.
Through these initiatives, local workers are gaining experience in advanced manufacturing, engineering, digital services, and complex supply chain roles that were once dominated by international expertise. This human capital development creates a virtuous cycle where skilled professionals can contribute to further industrial growth, innovation, and economic diversification.
Global Engagement and Investor Confidence
The iktva programme has not only reshaped domestic economic landscapes but also positioned Saudi Arabia as an attractive destination for global investors. Through international forums, supplier engagement programmes, and strategic partnerships, Saudi Aramco has showcased the potential of localisation to unlock business opportunities and long-term returns.
These engagements have connected global manufacturers with Saudi business prospects, stimulating new ventures and partnerships that foster cross-border innovation and shared growth. For many international firms, iktva represents a gateway into the Middle Eastern market, encouraging deeper collaboration and long-term investment in the Kingdom.
Looking Ahead Vision 2030 and Beyond
While the 70% localisation milestone is a landmark achievement, Saudi Aramco and the Kingdom are already looking ahead. Plans are in place to push localisation even further by 2030, reflecting a continued commitment to strengthening economic foundations and enhancing competitiveness.
This forward momentum aligns closely with Saudi Vision 2030, a long-term national strategy aimed at transforming the economy through diversification, innovation, and sustainable development. Localisation of the supply chain through iktva is one of the central pillars of this vision, helping create a resilient and future-ready economy that can thrive beyond oil.
Why This Milestone Matters for the World
Saudi Aramco’s breakthrough in localisation is not just a national success story, it carries global relevance. In a world where supply chain stability and economic resilience have become top priorities, the Kingdom’s model offers valuable lessons on how large corporations can contribute to national development while remaining globally competitive.
By demonstrating that localisation can drive economic value, create employment, and attract investment, Saudi Arabia’s experience encourages other nations and companies to rethink how they balance global sourcing with domestic capability building. The success of iktva highlights the power of strategic localisation as a tool for sustainable and inclusive growth.
Conclusion A Milestone Worth Celebrating
Saudi Aramco’s 70% localisation milestone represents a defining chapter in Saudi Arabia’s economic transformation journey. It shows how visionary planning, strong partnerships, and investment in people and industry can generate extraordinary results.
From boosting GDP and generating hundreds of thousands of jobs to nurturing a competitive industrial ecosystem and attracting global investment, this achievement elevates the Kingdom’s position on the world economic stage. As Saudi Arabia continues to raise its ambitions and pursue even greater levels of localisation, the impact of this milestone will shape the nation’s prosperity for generations to come.
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