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Saudi Aramco on Tuesday signed 13 memoranda of understanding (MoUs) worth SAR 6.3 billion ($1.68 billion) with local and foreign companies to a build a competitive and reliable local supply chain, Reuters reported.
The agreements are part of Aramco’s In-Kingdom Total Value Add Program (IKTVA), which aims to double the percentage of locally produced energy-related goods and services to 70 percent of the total spent by 2021.
The MoUs signed were with companies such as China’s Sinopec, Dalma Gulf Drilling Co. and National Petroleum Technology, while other agreements signed were part of the Kingdom’s plan to support the growth of small and medium enterprises (SMEs), the news agency said.
Speaking at the IKTVA SMEs Forum and Exhibition 2017, Saudi Aramco President & CEO Amin Nasser, said: “SMEs are the engine of innovation for economic growth and development. They have the agility, the know-how, the market expertise, and the products the oil and gas industry requires.”
“Yet, SMEs currently contribute just 20 percent to our GDP, which is less than half of industrialized economies. That is why Saudi Vision 2030 recognizes the huge potential of SMEs and has set an initial target of moving their contribution from 20 percent to 35 percent,” he added.
The forum and exhibition offers over 140 investment opportunities in localization valued at over $16 billion to local industries in the energy sector, Aramco said in a statement on its website.
Earlier on Tuesday, the oil major said it plans to raise its spending to $414 billion over the next ten years.
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