Saudi Aramco is committed to sustaining economic growth and development in the Kingdom. We strategically leverage our core business in a way that not only drives economic success but also benefits the Kingdom.
Nurturing the development of a globally competitive domestic energy sector is a keystone of our approach to leverage our core activities and capabilities to spur economic growth and create new jobs. In 2015, we launched our In-Kingdom Total Value Add program, designed to position local content at the heart of our procurement process. The program’s goal is to double the production of locally manufactured energy-related goods and services contracted by Saudi Aramco to 70% and increase the export of Saudi-made energy goods and services to 30% by 2021.
Development of the Saudi workforce is also one of the primary goals of the program, and we envision the domestic energy goods and services sector delivering thousands of direct and indirect jobs for Saudis over the long term.
The program will benefit from collaborative connections with R&D centers and entrepreneurship and incubation hubs such as Dhahran Techno Valley. Our efforts to improve science, technology, engineering and math (STEM) education in the Kingdom will help strengthen the enabling environment for the program, as will our partnership with the Ministry of Labor to establish 25 national training centers — eight of which are already active, with 12 in development and five in the planning stage.
Key facts in 2015
- Value of material procurement spending awarded to local manufacturers: $2.1 billion
- Percentage of material procurement spending awarded to local manufacturers: 37%
- Value of contract procurement awarded to local market: $26 billion
- Percentage of contract procurement awarded to local market: 80%
The scale of our business and associated capital expenditure programs creates significant opportunities for suppliers to invest in Saudi Arabia and partner with us on a long-term sustainable basis. We expect to spend more than $300 billion over the next decade, driving economic diversification, increased global competitiveness, and domestic job creation.
Our investments to promote the development of world-class energy goods and services industries in the Kingdom will encourage further investment in the country, spur economic diversification and drive job creation.