Energy giant Saudi Aramco has taken a significant step forward in its strategic localization program. Today, the company has signed 40 corporate procurement agreements valued at $6 billion with suppliers based in Saudi Arabia.
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Enhancing resilience and reliability
These agreements have been established with the purpose of strengthening Aramco’s domestic supply chain ecosystem. They are aimed at enhancing the company’s resilience, reliability, and ability to meet the evolving needs of its customers. Moreover, these agreements offer suppliers long-term visibility of demand, enabling them to seize future growth opportunities and advance their localization efforts.
Furthermore, these agreements play a vital role in fulfilling the objectives of Saudi Aramco’s iktva program. This program is the company’s flagship initiative, designed to foster the growth of a vibrant economy and create new prospects for Saudi nationals.
Building a prosperous supply chain
Wail Al Jaafari, Aramco’s executive vice president of Technical Services, expressed that the 40 new agreements signed that day were expected to contribute to the development of the domestic value chain and further strengthen the ecosystem that Aramco was actively involved in building. He also noted that these agreements would propel them towards a more prosperous, diverse, and resilient supply chain, which was essential for ensuring business continuity. Additionally, he mentioned that these agreements marked a significant milestone in their iktva journey and offered their partners an opportunity to benefit from a dynamic and increasingly diversified operating environment.
Fostering localization and supply chain development
These new corporate procurement agreements encompass various sectors and involve the supply of a wide range of products, including strategic commodities like instrumentation, electrical equipment, and drilling equipment. Additionally, Saudi Aramco has signed two Memoranda of Understanding with strategic partners to foster collaboration in localization and supply chain development.
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