Aramco signs $6B procurement agreements with local suppliers

The signing ceremony

Saudi Aramco signed today, Feb. 27, 40 corporate procurement agreements worth $6 billion with suppliers in Saudi Arabia to advance its strategic localization program.

The agreements aim to strengthen Aramco’s domestic supply chain ecosystem, contributing to the company’s resilience, reliability and ability to meet the evolving needs of its customers. They also provide suppliers with long-term visibility of demand, enabling them to capture future growth and advance localization efforts, Aramco said in an emailed statement to Argaam.

In addition, they contribute to achieving the objectives of Aramco’s iktva program, the company’s flagship initiative that aims to drive the growth of a vibrant economy and create new opportunities for Saudi nationals.

Covering a variety of sectors, the new corporate procurement agreements span the supply of a range of products comprising strategic commodities, such as instrumentation, and electrical and drilling equipment.

The world’s largest oil exporter also signed two memoranda of understanding with strategic partners to collaborate on localization and supply chain development.