Many companies aim to become suppliers for Saudi Aramco, as being an approved supplier offers stable, long-term contracts and access to the Saudi market. However, our firsthand insights indicate that most procurement needs are already fulfilled by established suppliers, unless they involve high-standard products with new technologies or significantly lower prices. Competing to enter the supplier database and pursue trade routes is quite challenging.
Is there a more effective way to break into the Saudi Aramco market and foster deep collaboration? The answer lies in establishing local manufacturing facilities.
With the implementation of Vision 2030 and industrialization plans, Aramco has introduced its local content strategy, IKTVA. This initiative encourages local manufacturing to meet procurement requirements, with project demands exceeding $16 billion. Simply put, Aramco favors products made locally. Once a partnership is formed through the IKTVA program, there is an opportunity to sign procurement agreements lasting 5 to 6 years and potentially receive investment support. This provides significant opportunities for investors looking to strengthen their presence in Saudi Arabia.
This strategy includes not only oil-related sectors but also innovative fields such as artificial intelligence, highlighting Aramco’s comprehensive approach to its industrial and investment strategies.
1.Oilfield Equipment
2.Offshore Equipment and Services
3.Metal Ecosystem
4.Electrical Equipment
5.Instrumentation
6.Fire Protection
7.Nonmetallic
8.Chemicals
9.Information Technology
10.Inspections
11.Pipe Coating
12.4IR and Digital Transformation
