Corporate Procurement Agreement & Localization MoUs Signing Ceremony - Remarks by Wail Al-Jaafari, EVP for Technical Services

Good morning ladies and gentlemen,

Today we are delighted to sign 40 Corporate Procurement Agreements, worth around $6 billion. 

We are also happy to introduce three localization Memorandums of Understanding.

These are more milestones on Aramco’s journey of localizing our supply chain, while helping grow the Kingdom’s economy.

That journey gathered pace with the launch of IKTVA in 2015. The In Kingdom Total Value Add program has been the catalyst for Aramco signing over 250 Corporate Procurement Agreements. 

So far, IKTVA has contributed around $200 billion to Saudi GDP.

Our partners from previous Corporate Procurement Agreements have enjoyed preferred supplier status with Aramco for both direct and indirect procurement.

They achieved a larger market share through increased production capacity and closer proximity to customers. They also managed to lower their operating costs, offered more competitive pricing and improved their export potential.

To date, agreement holders have been able to export to more than 40 countries around the world.

We are confident our new partners have the potential to achieve even more. 

Today, new enabler MOUs will be introduced to the wider eco-system Aramco is creating. Dussur supplies investment, Tuwaiq provides casting and forging while Italmatch localizes the specialist chemicals value chain.

This environment is complemented by Government efforts to enhance regulation, introduce incentives and establish special economic zones to attract more investment.

Taken together, these actions are building a more prosperous, more diverse and more robust supply chain that boosts business continuity, making Saudi businesses resilient to unforeseen economic shocks and ready to capitalize on growth opportunities.

The workforce is also a key part of this eco-system. We have therefore established 16 National Training Centers across the Kingdom. These key enablers cover more than 60 different trades. To date, 57,000 students have graduated.

We encourage our partners to sponsor new students to help develop the local workforce and secure their readiness to enter a dynamic and diversified economy. This workforce evolution will not only benefit Aramco and our partners, but the national economy too.

To the other companies who are joining us here, the suppliers we are partnering with today can help your business too.

Our new partners have all passed stringent technical requirements to reach this stage and have demonstrated a high level of competence and quality.

They are ready to provide quality products, using the latest technology in order to support your growth.

Bringing them closer to your operations could help optimize inventories and reduce operational costs. 

Large companies in other sectors should consider adopting Aramco’s strategy. 

Corporate Procurement Agreements could not just benefit them, but will ultimately achieve our shared goal of a more prosperous, more diverse and more robust supply chain for Saudi Arabia and the region.

Today marks another step on the journey towards that goal, a step we are all very proud of.

By formalizing our agreements today, we hope you share the same pride.

My gratitude goes to all those who have made it possible.

Thank you.

Media contact information

All media enquiries are handled by Aramco's Media & Executive Communications Department, Dhahran, Saudi Arabia.

For media inquiries, please email us at media.inquiries@aramco.com