Saudi Aramco signs 22 deals to expand industrial investment program

The memorandums of understanding and joint venture agreements “aim to tap into the vast opportunities available in the Kingdom of Saudi Arabia to create new value and drive economic expansion and diversification”, according to a release from the company.

Aramco chairman Yasir Al-Rumayyan, said: “Aramco continues to be at the forefront of enabling and enhancing the kingdom’s industrial, technology and sustainability infrastructure through large-scale investments and key partnerships, such as In-Kingdom Total Value Add (IKTVA) program and, by extension, Namaat.

We are proud to announce an expansion of our industrial investment program, #Aramco Namaat, that focuses on industrial investments and world-class partnerships

Learn more

— Aramco (@Aramco) September 7, 2021

“Such initiatives help further drive economic growth and diversification, ensure greater reliability of energy supply, effectively localise the industrial supply chain, and create better jobs and skillsets.”

The 22 new MoUs signed under the Namaat program include:

• SOLVAY – an MoU with the goal to pursue the development of advanced non-metallic materials and localisation of a composite value chain
• DHL Supply Chain – an arrangement to evaluate the feasibility of establishing a local industrial logistics and procurement hub serving Saudi Arabia and the MENA region
• VEOLIA – Exclusive MoU to confirm the commercial feasibility of establishing a world-class integrated waste management company, alongside a strategic IK stakeholder
• Air Liquide & Haliburton & PIF, Baker Hughes & PIF, Linde & Schlumberger & PIF – three separate non-binding MoUs to evaluate carbon capture & sequestration (CCS) opportunities and potential partnerships
• AIC Steel, GSW, McDermott, Seyang and Sendan, and NARMEL – five separate MoUs on modular construction
• Samsung Engineering, Hyundai and Saipem – three MoUs on engineering, procurement and construction
• Elion and Green Groves – two separate MoUs to evaluate the feasibility of localiding nature-based solutions
• Honeywell – an MoU with the goal to establish a JV that will develop and implement next-generation digital solutions that will improve efficiency, sustainability and enable operational excellence of industrial facilities
• Gulf Modular Industry (GMI) – MoU to validate the feasibility of developing and using non-metallic applications in the modular building manufacturing process in the building and construction sector
• Armorock – MoU to validate the feasibility of developing and using non-metallic polymer concrete applications in the building and construction sector
• Shell AMG Recycling & United Company for Industry – a trilateral MoU on metals reclamation and catalyst manufacturing;
• AVEVA – an MoU with the goal to establish a strategic alliance to localise development and deployment of various digital technologies including artificial intelligence (AI), machine learning (ML), and digital twin
• Baosteel – an MoU to conduct an engineering study and develop plans needed to build, own and operate an integrated steel plate manufacturing facility in Saudi Arabia.

The program complements Aramco’s flagship IKTVA program, which was launched in 2015 to enhance supply chain efficiency through localisation, skills development, knowledge transfer and job creation.

It also aligns with other major initiatives intended to drive a world-class energy and industrial ecosystem in Saudi Arabia, such as King Salman International Complex for Maritime Industries and Services, King Salman Energy Park (SPARK), and the forthcoming LAB7 innovation hub.

The 22 new MoUs announced also build on others first unveiled in November 2020, which included collaborations with Shell and AMG Recycling B.V., and Suzhou XDM 3D Printing Company Ltd, focusing on new business development in metal reclamation and commercial opportunities in industrial 3D printing, respectively.