Saudi Arabian energy and chemicals giant Aramco has signed a Memorandum of Understanding (MoU) with Taulia to investigate providing supplier financing solutions, in conjunction with JP Morgan and Manafa Capital.
The agreement was signed as part of a Saudi initiative known as In-Kingdom Total Value Add (iktva), designed to encourage businesses based within the Kingdom and reduce its reliance on outside firms. The program achieved 63% local content in 2022, up from 35% in 2015, when iktva was originally launched.
Ziad T. Murshed, Executive VP & CFO of Aramco, described the agreement as, "A great step towards enabling local suppliers to access funding options to support the industrial ecosystem and strengthen our local supply chain.”
Aramco, with annual sales of 359.2 billion USD, has the potential to be Taulia's largest ever client by revenue.