Enhancing our commercial ecosystem

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.

By leveraging the immense promise of the Kingdom’s resources, we enable a thriving commercial ecosystem that benefits our business and the country.

The Kingdom’s Vision 2030 is a blueprint for attaining greater levels of sustained economic growth and diversification, and for creating new opportunities for its citizens. Our strategic objectives are consistent with many aspects of Vision 2030, and our support for the Vision, built upon collaboration, will enable the achievement of shared goals — and in ways that produce more impactful results.

Our IKTVA initiative to grow the energy services sector and increase the amount of goods and services procured in the Kingdom enables us to operate more efficiently while helping to strengthen and diversify the local economy and domestic supplier base. Our efforts to broaden the impact of our commercial ecosystem extend to addressing climate change, including efforts to reduce greenhouse gas emissions and promoting energy efficiency within our enterprise and with end-users, further enabling economic growth.

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.

Building a globally competitive energy sector

IKTVA is our roadmap for advancing the way we procure goods and services. The program strives to localize 70% of expenditures for goods and services by 2021, supporting an internationally competitive energy sector capable of exporting 25% to 30% of its output per year.

In 2016 we increased the value of our material procurement spending awarded to local manufacturers to reach $2.9 billion — an increase of $800 million over 2015 and the highest level of local content in our history. We also completed the third-party IKTVA certification of our 100 top service providers, representing 80% of our procurement.

A significant landmark of the commitment to our IKTVA program by leading international businesses was the expansion of the General Electric (GE) GEMTEC gas turbine manufacturing facility. At the facility, in support of our Master Gas System Expansion Project, four high-efficiency gas compression trains were assembled locally for the first time. As part of the program, GE Oil and Gas qualified a network of Saudi-based suppliers for local and international GE markets — boosting the profile of in-Kingdom manufacturers and helping to catalyze further growth.

In another prominent example of how IKTVA is enabling new opportunities that also strengthen our network of service suppliers, we assisted the opening of Schlumberger’s Middle East Center for Reliability and Efficiency at Dammam Second Industrial City. Dedicated to advance maintenance and servicing of oil and gas technologies, the new cutting-edge facility is the largest of its kind in the world.

We also signed two joint venture agreements designed to help spur the localization of the energy value chain and enhance in-Kingdom technical capabilities:

  • With Nabors Industries Ltd., a global leader in drilling rigs, to manage and operate onshore drilling rigs along with capital commitments toward future rigs manufactured in Saudi Arabia.
  • With Rowan Companies plc, a global offshore contract driller, to own, operate, and manage offshore drilling rigs. The agreement also committed the new company to purchase future newly built rigs constructed in Saudi Arabia.

These two joint ventures, which are expected to create 5,000 jobs, illustrate our strategy to connect energy, people, and ideas to create new opportunities and additional value for our company and for Saudi Arabia.

By 2030, the King Salman International Complex for Maritime Industries and Services will create more than 80,000 in-Kingdom job opportunities.

New industries, new growth opportunities

With the laying of the cornerstone by The Custodian of the Two Holy Mosques for the King Salman International Complex for Maritime Industries and Services in Ras Al-Khair, we marked a significant milestone in our efforts to support the Kingdom’s development objectives. Designed to spur the growth of energy-related industries, the project is consistent with the localization and diversification goals outlined by Saudi Vision 2030.

We are heading an alliance of leading shipping and industrial companies for the construction of the complex that, when reaching full production capacity in 2022, will be the largest maritime industries complex in the Kingdom and a hub for regional maritime engineering, construction, and related expertise.

We anticipate the industrial complex could contribute roughly $3 billion to the Kingdom’s GDP per year, and significantly increase maritime-related domestic production. In 2016, we advanced the project with the signing of a Memorandum of Understanding with GE and Cividale SpA of Italy to build a $400 million forging and casting manufacturing facility near the complex — the first of its kind in Africa and the Middle East.

Close