Empowering Saudi Suppliers: Aramco Finalizes $6 Billion in Procurement Deals

Empowering Saudi Suppliers: Aramco Finalizes $6 Billion in Procurement Deals

By Staff Writer, 29 February 2024

On Tuesday, February 27, Saudi Arabia's oil behemoth, Aramco, took a significant stride forward in its strategic localization efforts by finalizing 40 procurement agreements with domestic suppliers, totaling a hefty $6 billion.

These agreements are crafted to fortify Aramco's local supply chain network, bolstering the company's resilience and its capacity to meet the dynamic demands of its clientele.

Notably, they offer suppliers prolonged visibility into demand, empowering them to seize forthcoming opportunities for growth and advance the localization agenda, Aramco confirmed.

As one of the world's premier integrated energy and chemicals enterprises, Aramco underlined that these agreements will also play a pivotal role in fulfilling the goals of its flagship initiative, the in-Kingdom Total Value Add program (iktva).

This program is geared towards fostering a robust economy and fostering fresh avenues for Saudi nationals.

Commenting on the procurement deals, Wail Al Jaafari, Aramco's Executive Vice President of Technical Services, remarked, "The 40 new agreements signed today are expected to contribute to the domestic value chain, and further enhance the ecosystem that Aramco is helping to build."

Al Jaafari continued, "These agreements move us towards a more prosperous, diverse and resilient supply chain, which will help ensure business continuity. They also represent a key milestone on our iktva journey, and provide our partners an opportunity to benefit from a dynamic and increasingly diversified operating environment"

Source: Trade Arabia

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