Partnerships in Kingdom Growing on Aramco Deal Activity

Aramco recently announced the signing of 22 MOUs for diverse slate of new partnerships

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Partnerships in Kingdom Growing on Aramco Deal Activity

January 2022 — Aramco Namaat, Saudi Aramco’s industrial investment program, is focused on forging world-class partnerships and increasing industrial investments in four main sectors: sustainability, technology, industrial services and advanced materials. Launched in November 2020, Aramco Namaat is building on the IKTVA[1]IKTVA is the In Kingdom Total Value Add Program, a new program created by Saudi Aramco to baseline, measure and support increased levels of localization in the Kingdom and Shareek programs in the wider spectrum of Saudi Vision 2030. As part of the explosion of new partnerships in the Kingdom, this September Aramco announced a major expansion of the Aramco Namaat program with the signing of 22 Memorandums of Understanding (MoUs) and a joint venture agreement with a variety of partners across a number of sectors with the objective of tapping into the vast opportunities available in the Kingdom. Aramco Namaat with the help if its partners is expected to create new value, drive economic expansion, and diversify the Saudi economy. By partnering with leading global players, the Aramco Namaat program will also drive knowledge, expertise and capabilities transfer.

The 22 new MoUs include (see Exhibit 1):

Sustainability Partnerships

Aramco is implementing circular economy concepts to reduce waste and emission reductions through green technologies including carbon capture:

Veolia: MoU to develop world class waste management company

Air Liquide, Haliburton & PIF: MoU to evaluate Carbon Capture & Sequestration (CCS) opportunities

Technology Partnerships

Aramco is taking advantage of 4IR technology to enhance operational efficiency and use state-of-the art digital tools to build a smarter, more data driven business:

Honeywell: MoU to establish a JV that will develop and implement next generation digital solutions in industrial facilities

AVEVA: MoU to localize development and deployment of digital technologies like Artificial Intelligence and Machine Learning

Industrial Partnership

Aramco is planning to further its low-cost production advantage and supply chain efficiency through improvements in inventory management, procurements, logistics and localization:

DHL Supply Chain: MoU to evaluate the feasibility of establishing a local industrial logistics and procurement hub

Advanced Materials Partnerships:

Aramco is promoting innovations in non-metallic materials which offer potential benefits in other sectors like oil and gas, renewables, automotive, construction etc.:

Armorock: MoU to assess the feasibility of developing and using non-metallic polymer concrete applications in construction sector

Gulf Modular Industry: MoU to evaluate the practicality of developing and using non-metallic applications in the modular building manufacturing process in the construction sector

Exhibit 1: Sample of Partners Who Recently Signed MOUs under the Namaat Aramco Program
Exhibit 1: Sample of Partners Who Recently Signed MOUs under the Namaat Aramco Program

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