Saudi oil giant gives $280 billion boost to GDP, creates 200,000 jobs

Saudi Aramco, the world’s largest integrated energy and chemicals company, has announced a major breakthrough in its In-Kingdom Total Value Add (iktva) programme by achieving a 70% local content benchmark in its supply chain, a milestone that underscores the Kingdom’s push to build domestic industrial capacity and diversify its economy.

This achievement comes as a part of a long-term strategy tied to Saudi Vision 2030 and has already delivered substantial economic benefits, including significant job creation and foreign investment.

What is iktva and why this milestone by Saudi Aramco matters

Launched in 2015, the iktva programme aims to maximise economic value within Saudi Arabia by localising procurement of goods and services, developing local suppliers and fostering a competitive national industrial ecosystem.

Through the initiative, Aramco encourages global investors and manufacturers to establish operations in the Kingdom, boosting domestic production and supporting broader economic diversification efforts.Reaching a 70% local content rate means that most of Aramco’s procurement spending now remains in-Kingdom, a massive shift from earlier years when the majority of materials and services were imported. This localisation strengthens Saudi Arabia’s supply-chain resilience, mitigates exposure to global disruptions, and builds a robust industrial base capable of supporting both energy and non-energy sectors.

The company has also reaffirmed its plan to raise local content further to 75% by 2030, signalling continued investment in national capabilities and competitiveness.

Economic impact of Saudi Aramco's success: Jobs, GDP and investment inflows

Perhaps the most tangible effect of Aramco’s iktva success has been employment and economic expansion across Saudi Arabia:

These outcomes show how iktva has not only tightened linkages between local suppliers and Saudi Aramco’s global operations but has also created a multiplier effect through job creation, skills development and supplier capability upgrades.

Saudi Aramco driving economic diversification beyond oil

Saudi Arabia’s Vision 2030 sees the energy sector as a springboard for broader economic transformation. Localising Aramco’s procurement spending aligns with that vision by nurturing local manufacturing, boosting exports, and reducing dependence on foreign supply chains.

A competitive domestic industrial base in Saudi Arabia

By concentrating procurement within the Kingdom, the programme incentivises suppliers to upgrade capacity and quality, which enhances Saudi Arabia’s industrial competitiveness.

This involves identifying opportunities across diverse sectors, from chemicals and metals to services, electrical components and machinery, laying the foundation for future export growth.

Saudi Aramco's supply chain resilience and operational reliability

Recent decades have seen global supply chains disrupted by geopolitical events, pandemics and inflationary pressures. Localising a significant portion of Aramco’s procurement through iktva reduces external risk exposure, ensuring critical energy infrastructure is supported by a strengthened domestic ecosystem.

Skills, training and workforce development in Saudi Arabia

Part of the iktva strategy has involved teaming up with private and public partners to broaden workforce training. Historical data from company initiatives shows that Aramco has collaborated with stakeholders to establish national training centres, equipping thousands of Saudi workers with marketable skills, a cornerstone of broader workforce localisation efforts.

Though not included in the latest release, previous iktva forums and events highlighted how these training and certification initiatives help Saudis enter technical, management and advanced manufacturing roles, aligning human capital development with local industry needs.

Saudi Aramco's global engagement: Attracting investors and suppliers

Aramco’s localisation drive is not just inward-facing. Through iktva, the company has hosted regional supplier forums, drawing global investors, manufacturers and service providers. These events help integrate Saudi Arabia into global supply networks and expand opportunities for both local and international firms seeking to contribute to and benefit from the Kingdom’s growth trajectory.This strategy also supports export capabilities, enabling products manufactured in Saudi Arabia to reach international markets as local suppliers mature and scale capacity.

Strategic outlook: Moving towards Saudi Arabia's 2030 Vision and beyond

Saudi Aramco’s achievement of the 70% localisation benchmark is a pivotal step toward its 2030 target of 75% local content, reflecting sustained progress over more than a decade of strategic efforts. Automotive, petrochemical, electrical and industrial products made locally enhance the Kingdom’s economic stack, while new jobs strengthen the domestic labour market.

By converting procurement spending into economic multipliers, the programme is seen as one of the most effective supply-chain-led industrial transformation models globally, melding energy-sector leadership with broader economic diversification.

Saudi Arabia’s localisation milestones under iktva are significant not just for Aramco but for the Kingdom’s long-term economic resilience.As the global energy landscape evolves and diversification becomes imperative, the ability to develop local industries, create jobs and attract investment positions Saudi Arabia for a future where domestic capability matters as much as hydrocarbon wealth. This milestone reinforces the dual mission of strengthening national supply chains and supporting economic breadth, a key pillar of Vision 2030’s promise to transform Saudi Arabia into a thriving, diversified global economy.