Aramco announces major expansion of its industrial investment program

• Aramco targets value creation opportunities in sustainability, technology, industrial and energy services, and advanced materials
• Program aims to drive economic growth and diversification in Saudi Arabia
• Partnerships to leverage a range of incentives through the government’s Shareek scheme

Aramco today announced a major expansion of its industrial investment program, Aramco Namaat, with the signing of 22 new Memoranda of Understanding (MoUs) and 1 joint venture (JV) agreement focused on capacity building in four key sectors: sustainability, technology, industrial and energy services, and advanced materials.

Namaat means (collective) growth in Arabic and the program aims to tap into the vast opportunities available in Saudi Arabia to create new value, and drive economic expansion and diversification.

Aramco Chairman, H.E. 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 IKTVA and, by extension, Namaat. Such initiatives help further drive economic growth and diversification, ensure greater reliability of energy supply, effectively localize the industrial supply chain, and create better jobs and skillsets.”

Aramco President & CEO, Amin H. Nasser, said: “Namaat offers our partners significant opportunities to participate in Aramco’s long-term growth strategy and play a vital role in the Kingdom’s expanding energy and chemicals supply chain. The benefits for everyone involved are multiple as well as mutual and I am proud that Aramco continues to be a catalyst at the heart of the Kingdom’s transformation, harnessing its expertise and resources to champion new markets and growth sectors. We believe these exciting target sectors offer significant opportunities for all the current and prospective parties involved.”

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 localization 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 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 separate MoUs on Engineering, Procurement and Construction;
• Elion and Green Groves – two separate MoUs to evaluate the feasibility of localizing 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 localize development and deployment of various digital technologies including Artificial Intelligence (AI), Machine Learning (ML), and Digital Twin; and
• 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.

As a result of Aramco’s continuous support of the industrial ecosystem, a JV agreement between SeAH and Dussur to localize stainless steel seamless tube and pipe manufacturing has materialized.

Aramco Senior Vice President of Technical Services, Ahmed Al-Sa’adi, said: “Through Namaat, we are attracting world-class partners who share our goal of continuous industrial development. These partnerships illustrate Saudi Arabia’s significant appeal to international companies and pave the way for new innovations in materials, processes and solutions. Leveraging a range of finance, funding, tax and regulatory incentives available through the government’s Shareek program, we aim to drive competitive advantage and achieve benefits for the environment, our business, our partners and for the wider energy and chemicals sector.”

The Namaat program is focused on investments in four key areas that align closely with Aramco’s objectives:

1. Sustainability: Aramco, which already has one of the lowest upstream carbon intensities in its industry, is implementing circular economy concepts to reduce waste and aims to pursue further emissions reductions through the deployment of green technologies, including carbon capture.
2. Technology: Aramco, through its Digital Transformation Program, is capitalizing on advanced 4IR technologies and adopting new solutions that enhance operational efficiency and improve performance in terms of safety, reliability, cost, and the environment.
3. Industrial: to maintain its low-cost production advantage and supply reliability, Aramco aims to achieve further supply chain efficiency through improvements in inventory management, procurement, logistics and localization.
4. Advanced Materials: leveraging advanced solutions to unlock the value of every hydrocarbon molecule produced, Aramco is stepping up innovation in non-metallic materials, which offer potential benefits for the building and construction, oil and gas, renewables, automotive and packaging sectors.

The program complements Aramco’s flagship In-Kingdom Total Value Add (iktva) program, which was launched in 2015 to enhance supply chain efficiency through localization, 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 today 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.

Companies can register their interest in the Namaat program by emailing NAMAAT@aramco.com.