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Saudi oil company Aramco signs deals worth USD 27.5 billion with suppliers this week

Nov 30,2018

This week Saudi oil company Aramco hosted its 4th In Kingdom Total Value Added Program ("IKTVA") Forum & Exhibition at the Dhahran Expo Center in Dammam, attracting more than 1,000 national and international equipment suppliers, manufacturers, energy-sector service and small and medium enterprises to explore available investment opportunities with Saudi Aramco in the upstream, chemicals, utilities, non-metallic, IT and cybersecurity, and other areas.

 

The annual flagship event supports the In Kingdom Total Value Add (IKTVA) program, Saudi Aramco’s localization strategy to establish Saudi Arabia as a globally-competitive energy hub in line with Vision 2030 and to build a world-class supply chain, the Kingdom’s economic diversification program. Held under the patronage of HRH Prince Saud bin Nayef bin Abdulaziz Al Saud, governor of the Eastern Province on November 26-27 the Forum offered presentations, panels, and workshops on best practices in navigating such areas as financing, Research & Development, regulatory requirements, and talent development. In addition to the signing of Memorandum of Understanding (MoUs) and commercial collaborations, an awards program was held to celebrate the program’s success stories for the year.

 

It is mandatory for every Saudi Aramco supplier to participate in IKTVA, as by 2021 the program aims to attain 70% local content, creates thousands of jobs and export 30 percent of local energy goods and services output. Partnerships support local content by contributing to job creation, technology transfer, training and development, and Research & Development. The program aims to establish 30 training centers helping prepare 360,000 highly skilled graduates for jobs of the future by 2030.

 

In return, over the next decade, the companies with a local presence can take advantage of more than Saudi Riyal (SAR) 1.7 trillion being spent by Saudi Aramco on localization opportunities.

 

Mr. Amin H Nasser, Saudi Aramco President & CEO, said that “Our 2018 IKTVA Forum marked the half-way point to our local-content goals, and the event has underlined the win-win nature of our program with several of our international suppliers increasing their market share or moving their producing to the kingdom. Over the 2 days event, we signed a complete of thirty-one commercial collaborations worth USD 27.5 billion. Companies that have invested here are ideally positioned to profit further with our signing last month of SAR one hundred twenty-five billion in business at the future Investment Initiative in Riyadh, abundant of which will have a direct impact on IKTVA. As of now, Saudi Aramco earmarks 51% of each riyal for materials and a service is spent locally.”