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Aramco Announces Expansion of its Flagship Localization Program

Saudi Aramco announced the expansion of its flagship program to increase local content and boost domestic supply chains. (Aramco)
Saudi Aramco announced the expansion of its flagship program to increase local content and boost domestic supply chains. (Aramco)
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Aramco Announces Expansion of its Flagship Localization Program

Saudi Aramco announced the expansion of its flagship program to increase local content and boost domestic supply chains. (Aramco)
Saudi Aramco announced the expansion of its flagship program to increase local content and boost domestic supply chains. (Aramco)

Saudi Aramco announced on Monday the expansion of its flagship program to increase local content and boost domestic supply chains.

It is a significant milestone in the company’s In-Kingdom Total Value Add (IKTVA) program, which marks its fifth anniversary on December 1, said the oil giant in a statement.

The expansion includes plans for new international partnerships and the establishing of companies through an Industrial Investment Program (IIP), which is linked to the development of Aramco's business.

Aramco has signed Memorandums of Understanding with Shell & AMG Recycling BV (AMG) from the Netherlands; Chinese firms Suzhou XDM, Shen Gong, Xinfoo and SUPCON; and Posco from South Korea.

These strategic collaborations pave the way for the launch of new businesses across multiple innovative growth sectors, including steel plate manufacturing, industrial 3D printing, digital equipment manufacturing, energy management and control; catalyst manufacturing and recycling, and advanced chip and smart sensor manufacturing.

“These new collaborations reflect Aramco’s commitment to increasing the company’s reliability and operational efficiency, as well as its commitment to further enhancing the Kingdom’s commercial ecosystem and increasing employment and development opportunities for talented Saudis,” said the statement.

Since IKTVA’s launch, Aramco’s local content index has increased from 35% at the end of 2015 to 56%.

Aramco’s President and Chief Executive Officer, Amin Nasser said: “Today’s announcement is a step change in Aramco’s pioneering IKTVA program. which was launched in 2015. Despite the uncertainties surrounding the global economy, we have sustained our focus on our long-term goals to enable growth and development for a thriving ecosystem and a more diversified Saudi economy.

“These new partnerships will contribute to advancing innovation, sustainability and enhance the scale of reliability in our business ecosystem and, in addition, benefit companies operating in the Kingdom's vast energy and chemicals sector.

“These partnerships will also have a strong focus on new technologies, by maximizing our investments in non-metallic materials and the circular carbon economy, as well as the development of talented Saudis in communities where we operate,” he stated.

Aramco’s Senior Vice President of Technical Services, Ahmad Al-Saadi said: “Aramco has a long history of supporting the local business ecosystem. Our IKTVA program is a manifestation of our commitment to this and the resulting investments, either directly by Aramco or indirectly by suppliers, have promoted localization, contributed to Aramco’s supply chain resilience and enhanced Saudi Arabia’s economic growth.

“Our planned partnerships will continue this journey and advance the Kingdom’s economic progress. We intend to act as an enabler, supporting the growth of national champions. Today we are expanding our flagship program, and expect more partnerships in the future,” he added.

Saudi Aramco has concluded MoUs with the following companies:

- POSCO: an agreement to collaborate on evaluating the feasibility of constructing an integrated steel plate manufacturing plant in Saudi Arabia.

- Suzhou XDM 3D Printing Company Ltd: an agreement to collaborate on industrial 3D printing technologies and development in Saudi Arabia.

- SHEN GONG New Materials (Guang Zhou) Co. Ltd: an agreement to focus on developing control systems technologies for LED lighting, energy management and intelligent control.

- XINFOO Sensor Technology Company Limited: an agreement to explore opportunities in chip manufacturing and related technologies.

- Shell & AMG Recycling B.V.: an agreement to explore collaboration to develop plans for a state-of-the-art regional hub for the recycling of gasification ash and reclamation of spent catalyst, in addition to providing sustainable solutions.

- Zhejiang SUPCON Technology Co., Ltd: an agreement to explore potential joint investment opportunities in Saudi Arabia for the services and manufacturing value chain.

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Sustainable Finance: From Ethical Choice to a Key Driver of Profitability in Global Markets

A worker cleans solar panels, a sustainable energy option that is gaining popularity among homes and farms for generating electricity (Reuters). 
A worker cleans solar panels, a sustainable energy option that is gaining popularity among homes and farms for generating electricity (Reuters). 
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Sustainable Finance: From Ethical Choice to a Key Driver of Profitability in Global Markets

A worker cleans solar panels, a sustainable energy option that is gaining popularity among homes and farms for generating electricity (Reuters). 
A worker cleans solar panels, a sustainable energy option that is gaining popularity among homes and farms for generating electricity (Reuters). 

As the world undergoes rapid economic and environmental transformations, sustainable finance has emerged as a central player in global markets, not merely as an ethical choice, but as a tangible investment opportunity with measurable returns.

Sustainable finance is defined as the integration of environmental, social, and governance (ESG) considerations into investment decisions, fostering long-term investments in sustainable economic activities and projects.

With the growing risks of climate change and heightened investor awareness of environmental and social responsibility, it is clear that ignoring sustainability standards is no longer a regulatory oversight, but a strategic mistake that could cost companies and investors dearly.

This reality raises fundamental questions about the relationship between profit and sustainability, and whether sustainable finance can truly balance financial performance with social responsibility.

Adopting Sustainable Practices

Mohammed Al-Faraj, Senior Head of Asset Management at Arbah Capital, stressed that sustainable finance has evolved from an ethics-driven choice reliant on corporate goodwill or government support into an effective investment tool and long-term profitability driver.

He explained that this shift stems from investors realizing that companies adopting sustainable practices are built on stronger, more stable foundations. The growing economic value of sustainability is now the primary driver behind corporate adoption.

Studies show that companies integrating sustainability standards attract top talent, build stronger brands, and reduce long-term operating costs through efficient resource and energy use. Over the past five years, sustainable finance instruments - such as green bonds and sustainable investment funds - have outperformed traditional ones. These funds also proved more resilient during economic crises, showing less volatility, reflecting sustainable companies’ stronger risk-management capabilities.

Al-Faraj noted that sustainable investment is less risky in the long term, as it accounts for factors often missed in traditional financial analysis, such as climate change, human rights risks, and corrupt governance. This approach acts as a “risk shield” by helping companies comply with increasing environmental and social regulations, avoid fines or penalties, and remain resilient to market shocks.

 

While the initial costs of sustainability may affect short-term competitiveness, they provide a lasting advantage over time. Al-Faraj concluded that sustainable finance is a natural evolution in investment philosophy, redefining the link between profit and responsibility, and guiding smart investors toward building wealth on solid, sustainable foundations in a risk-laden world.

 

Global Shifts

Financial and economic consultant Dr. Hussein Al-Attas echoed this view, saying sustainable finance is no longer merely an ethical stance or a marketing framework, but is now an investment option driven by pure economic logic. Amid climate shifts, global regulatory changes, and evolving investor behavior, market indicators in recent years have shown that companies and funds applying sustainability standards achieve better long-term financial performance with lower volatility and risk.

The consultant noted that while government support remains helpful, it is no longer the sole factor. Institutional investors, pension funds, and global asset managers are adopting sustainability strategies to achieve higher returns with reduced risk.

He continued that sustainable investment enables early regulatory compliance, reduces environmental damage that could lead to lawsuits or penalties, builds strong market reputations that boost customer and investor loyalty, and improves operational efficiency through innovation, energy efficiency, and resource management.

Al-Attas further emphasized that sustainability is no longer an operational burden but a strategic investment in corporate continuity and growth. He concluded that sustainable finance has become a prerequisite for profitability and success in global markets, and ignoring it could leave companies behind.