4th Industrial Revolution

& Information Technology

Workshops

25 - 26 January 2022

Section Title
Subtitle Here
Paving The Way to Economic Success

Saudi Aramco: Public

 IR 4.0 Session Outline

11 Investments Opportunities

Each will Provide:

Anticipated Market Size

Focus Areas
Connectivity/ Infrastructure Support
Hardware Hosting/System Platforms & Services
Integration Software

Value Chain Mapping

3 Investment opportunities will be covered in this presentation which are Networking,

Communications, Connectivity and Internet of Things.
iktva 2022
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Saudi Aramco: Public

 iktva Program Overview

The IN-KINGDOM TOTAL VALUE ADD (iktva) Program

• Drives domestic value creation by

working with suppliers for mutual
benefits

• Envisions to improve investment, and

maximize long term economic
growth and diversification

• Focuses on delivering quality jobs,

70% THOUSANDS INCREASE advancing innovation and enhancing
LOCAL CONTENT OF JOBS EXPORTS global competitiveness

iktva is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and
sub-suppliers
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 iktva 2022 Paving The Way to Economic Success

Networking and Communication

Information Technology Business Opportunities
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Saudi Aramco: Public

 Opportunity Outlook

The Opportunity The Business Case

• Establish a regional manufacturing • “In 2021 the Network equipment market was
hub for communication infrastructure valued at $11.9B”*

products covering Switches, Radio, • “The market is expected to reach $ 15.43B by

and Firewalls devices serving Saudi 2026 at a CAGR of 7.85%”* forecasted 2021-2026

Aramco as well as other domestic and • The Saudi telecommunications sector include

regional industries sub-sectors such as communications equipment

& communications services and others are
contributed up to 5.3% to the kingdom GDP led
to reach $18.4B as a market size of last year.

iktva 2022

Saudi Aramco: Public * Source: Mordor Intelligence, Communications & Information Technology Commission.
 Networking and Communication– Focus Areas

Communication Systems

LAN Wireless LAN Security devices – Radio

Switches Networks firewalls devices

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 Potential to serve multiple fields

Oil & Gas Building & Medical Military

Construction Facilities

Cloud Service Public

Providers Providers Sectors

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Saudi Aramco: Public
 The Saudi and MENA C&C markets are expected to experience a resilient growth
over the next years (+6% per year over 2021-2025)
C&C market size

KSA market size forecast (USD bn) MENA market size forecast (USD bn)

4.5 +7.85% 15.1

+7.85%
4.3 Support & 14.2 1.1 Support &
4.0 0.4
0.4 maintenance service 13.4 1.1 maintenance service
3.8 0.4 12.6 1.0
3.6 0.4 11.9 1.0
0.3 0.9
2.2 Other hardware 7.6 Other hardware
2.1 7.2
2.0 6.8
1.9 6.5
1.8 6.1

Computing storage Computing storage

0.8 0.8 2.6 2.8
0.7 & servers 2.4 & servers
0.6 0.7 2.1 2.2

0.8 0.9 0.9 1.0 1.0 Networking hardware 2.8 3.0 3.2 3.4 3.6 Networking hardware

2021 2022 2023 2024 2025 2021 2022 2023 2024 2025

Note: Other hardware includes desktop, laptops, hardware space parts, smart TVs (c.1.2 bn SAR), game consoles and specialized hardware
Note2: MENA includes Saudi Arabia, Israel, Turkey, Algeria, Egypt, Iran, Iraq, Kuwait, Morocco, Qatar, the United Arab Emirates, Bahrain, Jordan, Lebanon, Libya, Mauritania, Oman,
Palestinian Authority, Sudan, Syria, Tunisia and Yemen
8 Source: Kearney, Gartner
Saudi Aramco: Public
 KSA is an attractive country for a global manufacturer to localize its production
Partner’s benefits of localizing manufacturing in KSA

1 Strong Government support – Government

initiatives aiming at developing the enablers for the IT
industry
2 Strong trust of IT leading global players – Leading
players invested in Saudi Arabia, e.g. Huawei (investment license
granted in 2016), Cisco (training programs and capabilities1),
Honeywell (3 JVs in KSA with ATCO, Jamjoom Group and MK
Electric), HP Enterprise (SAGIA-licensed foreign investor), IBM, SAP

3 Good physical infrastructure to serve as a

regional hub – Good access to physical infrastructure 4 Regulation favorable to local production –
Regulation on import of foreign goods implies a lengthy and costly
and development of additional logistic hubs, e.g. SPARK dry process that limits players’ product portfolio width (especially for
ports and logistics zone niche items)

5 Improvement in KSA competitiveness,

notably in terms of ICT adoption – KSA ranks 36
out of 141 countries in the Global Competitiveness Report
(WEF2), gaining 5 positions over the last two-years and
strongly improving on several criteria3
6 Developing ecosystem in KSA to support
technology deployments & advancement – support
in the manufacturing localization process (e.g. SPARK initiative)

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Saudi Aramco: Public
 Value Chain Mapping Analysis: Network & Communication
Sales,
Design and Hardware
Software marketing and Services
development production distribution

• Support the local • Ability to cater to • Leveraging Saudi

• The application of market in • Opportunity in Saudi regulatory Aramco experience
ARAMCO specific use manufacturing of enhancements to the requirements (e.g., of IT/digital services
cases in the design of tailored & specific standard software distribution in KSA, built through
communication devices hardware products driving the business authorizations) several partnerships.
for oil & gas & other covering Infrastructure toward enhanced, • The extension of
sectors. hardware such as secure features in
• Deep understanding professional services
switches & routers. the software &
of key success factors of existing landscape
integrations. with technical expertise
for public sector
• For Saudi Aramco collaborations and covering maintenance
environment that can tenders of hardware and
be extended to other deployment services.
similar industries &
enterprises.

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 iktva 2022 Paving The Way to Economic Success

Connectivity (5G)
Information Technology Business Opportunities
Saudi Aramco: Public
 Opportunity Outlook
The Opportunity
Leveraging the ultra-reliable and low-
latency high speed connectivity to
develop industrial 5G AI-enabled
solutions for different verticals such as
Oil and Gas, Petrochemical industry,
Energy utilities, Manufacturing, Mining,
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Saudi Aramco: Public
The Business Case
• In KSA, CITC is planning to release 5G spectrum for the
private users to build their own dedicated private
networks.
• SAUDI ARAMCO is planning for a project to build private
5G network for more than 100 plants by 2025.
• The global private 5G network market size is estimated
to reach USD 14.28 billion by 2028, registering a CAGR of
39.7% from 2021 to 2028.
 Overview of 5G

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 5G is designed to Meet 3 Major Use Cases:

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Saudi Aramco: Public
 CITC Regulations Update

Spectrum Outlook 2021-2023 release by CITC

• CITC released in the last Spectrum Outlook

update, a total of 6 GHz spectrum for 5G usage
for national mobile operators and private
verticals

• CITC’s objective is to drive the market into

enabling and adopting more 5G+ solutions

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Saudi Aramco: Public
 5G Investment Forecast at MENA Countries

Source:
GSMA Report
The Mobile Economy
Middle East & North
Africa 2020

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Saudi Aramco: Public
 Aramco Plan for 5G
Capital Project: Deploy Industrial 5G for
116 Plants

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Saudi Aramco: Public
 Value Chain Mapping Analysis: Connectivity (5G)

Connectivity/ Software/
Hardware Support Services
System Integration Platform

▪ Intrinsically 5G devices • Advanced Analytics and • Development of advanced

▪ System connectivity and
networks AI Software and industrial 5G use cases
▪ 5G Enabled Sensors Platforms to serve solutions

advanced 5G use cases

▪ Multi-Access Edge ▪ System integration for
Computing Servers industrial 5G use cases

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Saudi Aramco: Public

 iktva 2022 Paving The Way to Economic Success

Internet of Things
Information Technology Business Opportunities
Saudi Aramco: Public
 Opportunity Outlook

The Opportunity The Business Case

• In the KSA, several large diversification projects

are rapidly catalyzing the uptake of smart city
solutions and services.
• Establish a world-class Smart Cities in
• Key projects include the Riyadh Rapid Bus Transit
transportation and logistics, retail, the
System, Riyadh Metro, Amaala, NEOM, Qiddiya and
public sector, and healthcare industries
the Red Sea Project.
to support 2030 vision. Largest growth in
• Ministry of Municipal & Rural Affairs & Housing
IoT spend in KSA is forecasted to be in launched the smart cities program – an ambitious
transportation and manufacturing. initiative by the government to apply the concept
of smart cities in Saudi cities to enter the digital
iktva 2022 age as part of the National Transformation
Program.
Saudi Aramco: Public
 Saudi Arabia Demand
KSA Projected Spend in IoT
USD Millions
(% per year)

4300

18.2%
3600

3100 Largest growth in IoT spend in

KSA is forecasted to be in
2600
manufacturing and
2200 transportation; thus,
Industrial IoT (IIoT) is
expected to have the highest
growth among IoT types

2021 2022 2023 2024 2025

Saudi Aramco: Public

 Use Cases

Saudi Aramco: Public

 Smart Traffic Light

Key Benefits
Description
• Manage traffic intersections
• Provide significant improvements to safety & traffic flows
• Reduce CO2 Emission

Utilize video cameras and artificial Key Users

intelligence to analyze traffic conditions
and automatically control traffic lights to
ease busy intersections during peak hours.

SA Employees Vendor Manufacturer

Key Technologies

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Saudi Aramco: Public

 Smart Parking

Key Benefits
Description
• Reduce CO2 Emission
• Optimize Parking Spaces

Parking sensors to detect the parking slot Key Users

status and guide people to available
parking slot.

SA Employees Vendor Manufacturer

Key Technologies

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Saudi Aramco: Public

 Fleet Management

Key Benefits
Description
• Reduce CO2 Emission
• Optimize Land Transportation

Utilize data analytics and IoT sensors for Key Users

fleet management to optimize routes,
monitor vehicle conditions and more.

SA Employees Vendor Manufacturer

Key Technologies

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Saudi Aramco: Public

 Smart Power Meter

Key Benefits
Description
• Automate Readings and Billings
• Track Power Consumption
• Improve Service Restoration Process

Smart power meter is digital device that Key Users

record the amount of energy consumed in
each home and provide automated
reading/billing with no human intervention
for the customers.
SA Employees Vendor Manufacturer

Key Technologies

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Saudi Aramco: Public

 Smart Water Meter

Key Benefits
Description
• Automate Readings and Billings
• Leak Detection

Smart Water meters helps water consumers Key Users

to track their exact water usage and
provide automated reading/billing with no
human intervention.

SA Employees Vendor Manufacturer

Key Technologies

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Saudi Aramco: Public

 Value Chain Mapping Analysis

Connectivity/ Software/
Hardware Support Services
System Integration Platform

Limited capacity for limited manufacturing Includes applications Covers technology and
sensor manufacturing of connectivity that transform processes related to
locally. hardware in KSA. collected data into IoT solutions such as
actionable insights. solutions management,
support and
Limited local Includes network Software platforms has deployment.
manufacturers of access (wireless, fiber, high potential to be
intelligent devices in satellite, etc.) used to localized.
KSA- strong potential connect a smart
for local device/sensor to a
manufacturing. network.

Saudi Aramco: Public

 Investment

Dedicated support for investors:

Historical demand data

and regional forecasts

Value chain gaps analysis

Key investment
iktva 2022 opportunities summary 29

Saudi Aramco: Public

 Please direct all inquiries to:
In case you are interested in discussing these opportunities further,
please contact:

Hiba A. AlAjeeb Fares B. AlOtaibi Fatima E. Momen

Local Business Development Local Business Development Local Business Development
Saudi Aramco Saudi Aramco Saudi Aramco
hiba.alajeeb.1@aramco.com fares.alotaibi.4@aramco.com fatima.momen@aramco.com

For more business development and market

information, please visit:
Website: www.iktva.sa/opportunities
Email: local-content@Aramco.com
Saudi Aramco: Public