Aramco Leads New Industrial Revolution in Saudi Arabia

Saudi Aramco officials and experts confirmed the oil company will lead a new industrial revolution in the Kingdom. (SPA)
Saudi Aramco officials and experts confirmed the oil company will lead a new industrial revolution in the Kingdom. (SPA)
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Aramco Leads New Industrial Revolution in Saudi Arabia

Saudi Aramco officials and experts confirmed the oil company will lead a new industrial revolution in the Kingdom. (SPA)
Saudi Aramco officials and experts confirmed the oil company will lead a new industrial revolution in the Kingdom. (SPA)

Saudi Aramco officials and experts confirmed that Saudi Arabia boasts huge technical investment opportunities that will create a new industrial revolution that will see the introduction of 11,000 robots that will carry out highly sensitive industrial and technical tasks.

They added that the market for industrial technology and applications will be worth billions of dollars in 2025.

Aramco made the announcement during a meeting at the Eastern Province Chamber of Commerce symposium on the "4th Industrial Revolution and IKTVA support".

Aramco's technical experts said there are several opportunities in this sector given the low number of workers in this field. They explained that Saudi Arabia is seeking to normalize cloud services, a mission that requires several technicians, which will open up real opportunities for Saudis.

The new industrial revolution in the field of technology will lead to the introduction of 11,000 robots in Saudi society. They will be tasked with carrying out highly sensitive industrial and technical tasks, stressed Aramco control and operations department member Mohammed Abu Sharifa.

In addition, he said that the market for mobile solutions and advanced analytics will reach $1.5 billion by 2025. He also highlighted real opportunities in 3D printing, high-performance computing, and the number of robots and drones that will take on important services in industry, transportation and exploration.

Saudi Aramco's manager for industrial development and strategic supply, Abdullah al-Thaali, explained at the conference that Saudi Aramco's localization initiative, IKTVA, has acted as an incubator for localization investments, especially for small and medium enterprises.

He said that since its launch, IKTVA has achieved an average of 45 percent localization success rate.

Saudi Aramco reviewed the digital platform, SABB Arabia, for the registration of domestic and foreign companies, which is expanding its services to a number of major Saudi companies, such as SABIC, Marafiq, Sadara, and Satorp and al-Bahri.

Aramco officials said the platform will be expanded over the coming stages to include government institutions and, later, the Arabian Gulf region, in a move aimed at embracing new technologies and creating a unified platform for business development and sustainability.

The platform allows industrial companies or construction companies to offer their potential to enter the supply chain of various projects, with IKTVA alone providing investment opportunities estimated at $1.5 billion.

Ahmed al-Falih, of Aramco's Adaptation Program said that IKTVA, raised the level of the local product to about 45 percent in 2017.

He pointed out that IKTVA increased local purchase to 50 percent in 2017, the highest rate achieved in the history of Saudi Aramco. He added that the program has become a major requirement for business with Saudi Aramco and the company is keen to encourage its suppliers to invest in its future investment plans, which amount to about SR140 billion annually.

Meanwhile, IT and digital transformation officials at Aramco discussed investment opportunities in the local market, stressing that the Middle East's e-security market would grow to reach $55 billion by 2022.

In-Kingdom Total Value Add (IKTVA) is one of the leading models in Vision 2030. It aims to achieve 70 percent of local content in industry and services in the energy sector by 2021. The program reinforces Aramco's quest to develop an accessible global supply and supply system with a high degree of reliability and an advanced level of innovation to achieve its strategic goal of becoming the world's leading and integrated energy and chemical company.



Saudi-UAE Trade Exchange Reaches $244 Billion in 10 Years

The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
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Saudi-UAE Trade Exchange Reaches $244 Billion in 10 Years

The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)

The Saudi-Emirati Economic Forum, which kicked off at the Federation of Saudi Chambers headquarters in Riyadh on Sunday, highlighted significant growth in trade between Saudi Arabia and the United Arab Emirates, reaching SAR 915 billion ($244 billion) over the past decade (2014 to 2023). In the past three years alone, trade reached its highest levels, totaling SAR 327.5 billion ($87.3 billion).

Saudi Minister of Economy and Planning Faisal Al-Ibrahim noted that trade between Saudi Arabia and the UAE increased by 25% over the past five years, reaching SAR 113 billion ($30 billion) by the end of 2023, compared to SAR 90 billion ($24 billion) in 2019.

He added that both countries have seen significant transformations in investment due to policies and measures designed to develop and improve the investment environment.

Al-Ibrahim also highlighted that, as of the end of last year, the UAE recorded positive growth in foreign direct investment (FDI) in Saudi Arabia, totaling around SAR 111 billion ($29.6 billion), marking a 15% increase from 2022.

Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef emphasized that Saudi Arabia and the UAE have promising potential to enhance integration in industry and mining.

He expressed eagerness to collaborate on joint initiatives to support entrepreneurs by improving access to financing and training.

Al-Khorayef noted that Saudi exports to the UAE grew at an annual rate exceeding 9%, reaching about SAR 31 billion SAR this year.

UAE Minister of Economy Abdullah Al Marri revealed that UAE investments in Saudi Arabia have reached AED 15.7 billion, stressing that the forum provides a platform to continue strengthening the economic partnership between the two countries and advancing it to new levels.

He underlined the forum’s role in helping business communities explore promising growth opportunities in both countries. Al Marri underscored the private sector’s critical role as a key partner in helping both governments achieve their future vision, stressing that current global economic challenges underline the need to strengthen partnership channels.

He further highlighted that the UAE is Saudi Arabia’s largest Gulf and Arab trading partner and second-largest global partner, while the Kingdom is the UAE’s top Gulf and Arab trading partner and fourth globally.

Non-oil trade between the two nations reached AED 137 billion in 2023, with non-oil trade exchanges totaling AED 75 billion in the first half of this year, reflecting over 18% growth compared to the same period in 2023.

UAE investment inflows into Saudi markets grew by more than AED 15.7 billion in 2023, a 6% increase from 2022. Saudi cumulative investments in the UAE reached $6.5 billion by the end of 2022, making Saudi Arabia the fourth-largest investor in the UAE, according to Al Marri.

Chairman of the Saudi-Emirati Business Council Abdulhakim Al-Khaldi said the economic partnership with the UAE is strong and growing, encompassing trade and investment cooperation in most major sectors.

Vice President of the Federation of Saudi Chambers Fayez Al-Shuaili said the forum would support achieving shared goals, produce actionable recommendations, and foster a business-friendly environment to boost trade and investment growth.

Trade between the two countries reached around $30 billion last year, with further growth anticipated in trade and investment relations, he added.