Saudi Aramco has achieved its 70% local content target under its flagship Kingdom Total Value Added (iktva) program and now aims to raise that figure to 75% by 2030.
The milestone underlines the scale of Saudi Arabia’s industrial localization drive, with the company reporting that iktva has contributed more than $280 billion to the national GDP since its launch and has helped generate more than 200,000 direct and indirect jobs across the Kingdom.
The state-controlled energy major announced that 70% of its procurement of goods and services is now sourced locally, achieving a goal that has been central to its supply chain transformation strategy over the past decade. Based on that benchmark, Aramco said it intends to increase local procurement to 75% by the end of the decade.
Aramco CEO Amin Nasser described the program as a central pillar of the company’s strategy to build a competitive national industrial ecosystem aligned with Saudi Arabia’s broader economic diversification agenda.
Since its inception, iktva has evolved from a procurement metric to a central instrument of Saudi industrial policy. By channeling project spending towards domestic suppliers and manufacturers, Aramco has effectively used its capital budget as a lever for economic multipliers within the Kingdom.
According to company data, the program has:
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It added more than $280 billion to Saudi GDP.
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It attracted $9 billion in domestic investment.
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Catalyzed more than 350 investments from 35 countries.
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For the first time, it allowed 47 strategic products to be manufactured locally.
Aramco said iktva has identified more than 200 localization opportunities across 12 sectors, representing a combined annual market opportunity of $28 billion. These encompass manufacturing, services and energy-related supply chain segments that are critical to upstream and downstream operations.
The company also highlighted 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 crises.
The announcement comes as Saudi Arabia continues to accelerate its Vision 2030 agenda, which seeks to reduce dependence on crude oil exports by expanding domestic contributions from manufacturing, services and non-oil GDP.
For Aramco, the world’s largest oil exporter, supply chain localization also has strategic implications beyond economic diversification. As global energy markets face tighter equipment availability, rising manufacturing costs and increasing competition for engineering capacity, particularly amid the global development of LNG and renewable energy, having a strong domestic supplier base improves the certainty of project execution.