Saudi Aramco has launched a contractors and suppliers relations centre in the Chamber of Commerce and Industry in Riyadh to facilitate the registration process and help contractors reach the company.
The centre is part of Saudi Aramco’s efforts to expand reach and communication with contractors and material suppliers, and to drive domestic value creation through its In-Kingdom Value Add (IKTVA) programme that aims at increasing local content in products and services, localising innovation and technology, and creating job opportunities for Saudis, said a statement.
The company encourages various organisations in the kingdom to adopt similar programmes across the country, it said.
Abdulaziz Al AbdulKarim, Saudi Aramco vice president for procurement and supply chain management, said: “We are delighted by the opening of the centre in the Riyadh chamber. It will further enhance registration efficiency and communication with our valued partners. We strive to offer local contractors a wide array of opportunities to work with us, and we expect them to invest in increasing local content in their products and services. The company gives priority to local content, and through its IKTVA programme it encourages contractors and material suppliers to compete to achieve higher levels of localisation.”
IKTVA is a new way of doing business with Saudi Aramco that drives investments through contractors and material suppliers in localising products and services, developing local supply chains, training and employing Saudi manpower. The programme rewards contractors and material suppliers with significant achievements in localising goods and services, salaries paid to Saudis, training and development for Saudis, and supplier development spending. And this year, the company added a new factor to the IKTVA formula, which is the localisation of research and development, to foster the transfer of innovation and technology.
The IKTVA programme is in line with the objectives of Saudi Vision 2030 and the National Transformation Program to encourage the private sector to produce products and provide services locally, and to decrease the reliance on imports, especially in the energy sector and the related industries.
Saudi Aramco has achieved significant successes in localisation since the launch of IKTVA programme. Value of the company’s spending on locally manufactured products reached SR10 billion ($2.66 billion) in 2016, which comprises an all-time high share of 43 per cent of total spending, a 14 per cent increase from the previous year, the statement said.