Localization: A Blueprint for a Resilient and Innovative Saudi Arabia

Saudi Arabia’s transformation under Vision 2030 is one of the most ambitious economic diversification efforts of our time.

By reducing reliance on traditional revenue streams and creating new engines of growth, the Kingdom is charting a course toward a more sustainable, knowledge-driven future. Central to this mission are localization initiatives, including the In-Kingdom Total Value Add (IKTVA) program by Saudi Aramco. This aims to localize industrial capacity, create high-quality jobs, and build a highly skilled workforce.

For more than seven decades, Honeywell has partnered with Saudi Arabia’s government and private organizations to advance its industrial and economic ambitions. Today, our role has never been more pivotal. As a company deeply committed to the Kingdom, we are leveraging our expertise in advanced manufacturing, workforce development, and cutting-edge technologies to support IKTVA and other localization initiatives supporting Vision 2030.

Building resilience through localization and local talent

Localization lies at the heart of this transformation. It is the cornerstone of more sustainable growth and resilience, enabling the Kingdom to reduce dependence on imports while nurturing local talent and industries. The IKTVA program has played a critical role in this effort, attracting more than 460 investments with an estimated capital expenditure of $7 billion, contributing around $100 billion to the Saudi economy. This program has also been instrumental in creating thousands of jobs for young Saudis, with suppliers increasing their spending on the Saudi workforce by 60% since 2015 and tripling their investments in R&D within the Kingdom.

Honeywell’s investments align seamlessly with these goals. In 2023, we announced a new advanced manufacturing site at SPARK, marking our eighth office in the Kingdom. This facility underscores our commitment to localization and innovation, contributing to the robust ecosystem that positions Saudi Arabia as a global industrial leader.

But localization is not just about infrastructure—it is about empowering people. Honeywell’s Saudi-led workforce comprises more than 650 employees working across engineering, sales, customer support, and advanced manufacturing. Nearly half of these employees are Saudi nationals. Furthermore, our graduate engineering program has enabled us to increase the number of female hires by 50% in recent years. We are proud that 20% of our Saudi employees are women, half of whom are engineers. These efforts are equipping the workforce to lead the Kingdom’s economic transformation.

Building technology as a catalyst for transformation

As we invest in people, we must also harness the power of technology to drive efficiency and innovation. Honeywell is at the forefront of integrating advanced solutions that align with Saudi Arabia’s Net Zero 2060 and digital transformation ambitions. Through initiatives like our Plant.Digital joint venture with Aramco, we are enabling industries to manage end-to-end plant operations to enhance efficiency, improve operational performance, and unlock new opportunities for growth.

Whether through carbon capture solutions, technologies to support the LNG and hydrogen value chains or AI-driven analytics and automation control systems, our technologies are helping Saudi businesses navigate the energy transition while maintaining competitiveness.

As companies adopt new technologies and practices, they often encounter hurdles such as workforce gaps, resource constraints, and the complexity es of integrating cutting-edge systems into existing operations. Addressing these challenges requires a collaborative approach—one that unites public and private sector efforts to create policies that support advanced technology investment, create new opportunities in education and employment, and ensure equitable growth.

Saudi Arabia’s Vision 2030 has set out to do exactly this, and the role of human capital in its success cannot be understanded. That is why programs like IKTVA are so crucial. They are not just blueprints for economic success but catalysts for a brighter, more inclusive future. At Honeywell, we are honored to partner with the Kingdom on this remarkable journey, combining global expertise with a deep commitment to local development.

As Saudi Arabia moves toward 2025 and beyond, the opportunities are immense.

By focusing on localization, empowering its people and embracing innovation, the Kingdom is poised to take a leadership position on the global stage across critical industrial sectors. We remain steadfast in our commitment to supporting this vision, building a resilient and prosperous Saudi Arabia that is a catalyst for growth.

This article is adapted from a story originally published in Oil and Gas Middle East in 2025.