Aramco Digital, LTIMindtree forge new IT services company to propel Saudi Arabia’s Vision 2030
Aramco Digital, the digital and technology arm of the oil and gas giant Aramco, and LTIMindtree, a renowned global technology consulting and digital solutions company listed on the National Stock Exchange (NSE: LTIM) and Bombay Stock Exchange (BSE: 540005), have taken a significant step towards enhancing the digital and IT landscape in the Kingdom of Saudi Arabia. Through a strategic shareholders’ agreement, the two powerhouses aim to establish an IT services company that will not only foster innovation and digital disruption but also play a pivotal role in supporting the Kingdom’s ambitious Vision 2030. This new venture, aligned with the Aramco Namaat Industrial Investments Program, promises to create highly skilled job opportunities for Saudis, marking a milestone in the region’s digital transformation journey.
The venture’s inception is marked by an initial investment of USD 12.3 million from LTIMindtree, allocated in one or more tranches. Upon the incorporation of the joint venture company, LTIMindtree will possess a majority stake of 51% in the share capital, while Aramco Digital will hold the remaining 49%. This financial commitment underscores the partners’ dedication to fostering a digital ecosystem that is not only lucrative but also integral to the digital advancement of Saudi Arabia and, potentially, the broader MENA region.
The envisioned IT services company aims to become a regional hub for IT services, focusing initially on Saudi Arabia and later expanding to the MENA region. This venture is poised to be a catalyst for digital transformation in the Kingdom, aiming to bridge IT gaps, transfer knowledge in IT domains, and cultivate an ecosystem of IT and Digital Transformation services. Moreover, it offers an attractive financial proposition and paves the way for co-innovation and joint IP creation, aligning perfectly with Saudi Arabia’s Vision 2030.
LTIMindtree’s President and Executive Board Member, Sudhir Chaturvedi, expressed enthusiasm about aligning with Saudi Vision 2030 and the opportunity to bring their global capabilities and expertise to the Kingdom. This partnership aims to leverage new technologies for digital transformation across various sectors, including energy, manufacturing, and financial services, fostering growth and innovation in the region.
Nabil Al Nuaim, Aramco’s Senior Vice President of Digital and Information Technology, emphasized the venture’s role in leveraging digital transformation to unlock innovation and sustainability opportunities. Tareq Amin, CEO of Aramco Digital, highlighted the collaboration’s potential to deliver world-class, sustainable value while contributing to local job creation and expertise development.
This strategic alliance between Aramco Digital and LTIMindtree signifies a monumental step towards achieving Saudi Arabia’s Vision 2030. By harnessing the strengths of both entities, the joint venture is set to revolutionize the IT services landscape in the Kingdom, driving digital transformation, and contributing to the national economy’s growth and diversification.