Saudi Aramco, the state-owned oil and gas company of Saudi Arabia, has announced that its In-Kingdom Total Value Add (iktva) program has contributed an estimated $280 billion to Saudi Arabia's Gross Domestic Product (GDP) and created more than 200,000 jobs since its inception. The company confirmed that the iktva program recently surpassed a 70% localization milestone, indicating a significant increase in local content and supply chain development within the Kingdom.

The iktva program, launched in December 2015, is designed to drive domestic value creation, stimulate economic growth, and foster a localized supply chain for Saudi Aramco's operations. Its core objective is to increase the percentage of goods and services sourced locally by Saudi Aramco and its suppliers, thereby enhancing the country's manufacturing and service capabilities, attracting foreign direct investment, and transferring knowledge and technology. Achieving 70% localization signifies that 70% of Saudi Aramco's total procurement spend for goods and services is now directed towards local suppliers and manufacturers.

The reported $280 billion contribution to GDP represents the cumulative economic impact generated through the program's activities, including local sourcing, job creation, and investment in local industries. This financial injection supports various sectors of the Saudi economy, extending beyond the oil and gas industry to encompass manufacturing, technology, logistics, and services.

Job creation has been a central pillar of the iktva initiative. The generation of over 200,000 direct and indirect jobs underscores the program's role in workforce development and empowering Saudi nationals. These employment opportunities span a range of technical and professional fields, contributing to the upskilling of the local labor force and supporting small and medium-sized enterprises (SMEs) that form a crucial part of the localized supply chain.

  • Program Launch: December 2015
  • Localization Milestone: Exceeded 70% local content
  • GDP Contribution: $280 billion (cumulative since inception)
  • Job Creation: Over 200,000 direct and indirect jobs

The success of the iktva program has also served to attract global companies to establish a presence within Saudi Arabia. By mandating a higher percentage of local content, the program incentivizes international firms to invest in local manufacturing facilities, form partnerships with Saudi businesses, and develop local talent, thereby integrating them into the Kingdom's economic ecosystem. This influx of global expertise and investment further strengthens Saudi Arabia's industrial base and diversifies its economic landscape.

These developments align with Saudi Arabia's broader Vision 2030 goals, which aim to reduce the Kingdom's economic reliance on oil and foster a diversified, sustainable economy. Initiatives like iktva are instrumental in building domestic capabilities, enhancing industrial capacity, and creating a vibrant private sector that can generate long-term employment and economic stability for the country. Saudi Aramco's continued focus on in-country value addition is expected to play a sustained role in the nation's economic transformation.