Aramco Expands “Made in Saudi” Push With New 2030 Target
- Finance
ThePostMaster- 0
- 7 minutes read
Saudi Aramco has reached its 70% local content target under its flagship In-Kingdom Total Value Add (iktva) program and now aims to lift that figure to 75% by 2030.
The milestone underscores the scale of Saudi Arabia’s industrial localization push, with the company reporting that iktva has contributed more than $280 billion to national GDP since its launch and helped generate over 200,000 direct and indirect jobs across the Kingdom.
The state-controlled energy major announced that 70% of its goods and services procurement is now sourced locally, achieving a target that has been central to its supply chain transformation strategy over the past decade. Building on that benchmark, Aramco said it intends to increase local procurement to 75% by the end of the decade.
Aramco’s CEO Amin Nasser described the program as a core pillar of the company’s strategy to build a competitive domestic industrial ecosystem aligned with Saudi Arabia’s broader economic diversification agenda.
Since its inception, iktva has evolved from a procurement metric into a central instrument of Saudi industrial policy. By channeling project spending into domestic suppliers and manufacturers, Aramco has effectively used its capital budget as a lever for economic multipliers inside the Kingdom.
According to company data, the program has:
Added more than $280 billion to Saudi GDP.
Attracted $9 billion in inward investment.
Catalyzed over 350 investments from 35 countries.
Enabled 47 strategic products to be manufactured locally for the first time.
Aramco said iktva has identified more than 200 localization opportunities across 12 sectors, representing a combined annual market opportunity of $28 billion. These span manufacturing, services, and energy-related supply chain segments critical to upstream and downstream operations.
The company also emphasized supply chain resilience as a key benefit. By localizing production and services, Aramco has reduced exposure to global logistics disruptions and input cost volatility—factors that have materially affected energy supply chains since the pandemic and during subsequent geopolitical shocks.
The announcement comes as Saudi Arabia continues to accelerate its Vision 2030 agenda, which seeks to reduce reliance on crude exports by expanding domestic manufacturing, services, and non-oil GDP contributions.
For Aramco, the world’s largest oil exporter, supply chain localization also carries strategic implications beyond economic diversification. As global energy markets contend with tighter equipment availability, rising fabrication costs, and increasing competition for engineering capacity—particularly amid the global LNG and renewables buildout—having a robust domestic supplier base enhances project execution certainty.
