Saudi Aramco signs agreements at the iktva Forum worth $7.2 billion
Saudi Aramco signs agreements at the iktva Forum worth $7.2 billion

Dharran: On Monday in Dhahran, Saudi Arabian Oil Co. participated in the seventh In-Kingdom Total Value Add Forum and signed agreements worth approximately $7.2 billion.

In order to speed up its efforts in digital transformation, the company also established Aramco Digital Co. during the forum.

"Today's launch of the Aramco Digital Company marks the beginning of a significant new digital transformation initiative, which I am proud to announce. Amin Nasser, president and CEO of Saudi Aramco, announced that the company plans to invest $1.9 billion over the next three years, the largest digital investment made by Aramco to date, while enhancing the Kingdom's digital ecosystem.

Also Read: Budget 2023-24: FM to present Economic Survey in Parliament

He emphasised that while Saudi Arabia will be a land of opportunities for investors, it will also be "truly a Kingdom of opportunities for all."

The launch of Aramco Digital Company is a great example of innovation in action, providing cutting-edge AI and emerging technology expertise in a crucial sector of the economy, according to Ahmad A. Al-Sa'adi, Aramco executive vice president of technical services.

The event, which has the theme "Accelerating Future Success" and runs through February 2nd, saw the energy giant sign over 100 agreements and memoranda of understanding.

Aramco made agreements with Taulia Inc. to implement supplier financing solutions, as well as a strategic partnership agreement with Zoom, at the event.

Additionally, the business signed a legally binding agreement to form a joint venture with DHL to provide procurement and supply chain services, and it collaborated with the Saudi Arabian Ministry of Investment to create and market investment opportunities.

Also Read: IMF claims India's growth rate will be faster than all countries of the world

Aramco also signed an agreement with Accenture at the event to quicken system integration and digital solution services. It also came to an agreement with Achilles to create and localise rating services for governance, social issues, and the environment.

The Aramco CEO informed the audience that the iktva programme increased local content from 35% in 2015 when it was first introduced to 63% in 2022. Prince Abdulaziz bin Salman, the Saudi Arabian energy minister, later expressed his desire for the local content to reach 85% by 2030.

"Without the outstanding dedication of our suppliers to localization in the first seven years of iktva, nothing would be possible. In addition to distributing the rewards we promised, it has increased the cost-effectiveness, resiliency, and reliability of Aramco's businesses, Nasser told the crowd.

"My generation can be proud of transferring a globally competitive, integrated energy company, as well as pioneering work on decarbonization and positioning Aramco at the centre of lower carbon businesses, such as blue-chip companies."

The forum highlights group localization initiatives in important focus areas like the manufacturing, industrial, and sustainable sectors as well as the digital space.

"Aramco places a high priority on the local supplier ecosystem, which also significantly boosts the economy of the Kingdom. We are fostering an innovative culture and offering high-quality jobs for our expanding population through this massive programme, Al-Sa'adi continued.

The iktva programme promotes the establishment of regional headquarters for foreign corporations in the Kingdom. More than 150 investments have been made in the Kingdom since its founding, including ones for goods that were first produced there. The company has also opened 16 national training centres, covering more than 60 trades, in 10 Saudi cities. Over 48,000 Saudi nationals have travelled abroad so far.

Also Read: India Inflation likely to come down to 5% in 2023, 4% in 2024: IMF

The role of Saudi women and their accomplishments in their respective fields were also highlighted in a presentation on the first day of the event. Prince Abdulaziz made light of the presentation by joking that the ministry in Riyadh would soon hire the roughly a dozen exceptional women depicted in the video. The energy minister told the audience, which erupted in laughter, "I'm sure by next year you will find them in Riyadh working in the ministry."

The Ministry of Energy's crucial role is to lead and facilitate the localization programme. We stay in touch with every component of the ecosystem and are prepared to work with other governmental organisations to support, motivate, and reward them for stepping up their efforts, according to Prince Abdulaziz. Over 10,000 people attended the event's opening day, and 290 companies participated in the exhibition area.

Join NewsTrack Whatsapp group
Related News