Saudi Aramco signed deals worth US$27.5 billion for 31 commercial collaborations under its IKTVA program geared to boost in-country spending and diversify Saudi Arabia’s economy.
“We signed $27.5 billion in a total of 31 commercial collaborations,” Saudi Aramco president & CEO Amin H. Nasser was cited as saying at its IKTVA forum in Dahran according to a company statement.
“Companies that have invested here are ideally positioned to benefit further with our signing last month of SAR 125 billion in business at the Future Investment Initiative in Riyadh, much of which will have a direct impact on IKTVA. As of now, 51 percent of each riyal Saudi Aramco earmarks for materials and services is spent locally,” he added.
Aramco did not reveal details of the deals with suppliers.
The In Kingdom Total Value Add (IKTVA) program is Saudi Aramco’s localisation strategy to build a world-class supply chain and establish Saudi Arabia as a globally-competitive energy hub in line with Vision 2030, the Kingdom’s economic diversification program.
IKTVA participation is mandatory for every Saudi Aramco supplier, as the program aims to attain 70 percent local content, create thousands of jobs and export 30 percent of local energy goods and services output by 2021. Partnerships support local content by contributing to job creation, technology transfer, training and development, and R&D. By 2030, the program aims to establish 30 training centres helping prepare 360,000 highly skilled graduates for jobs of the future.
In return, companies with a local presence can take advantage of more than SAR 1.7 trillion being spent by Saudi Aramco on localisation opportunities over the next decade, the company.