Saudi Aramco inks cooperation agreement with Monsha’at to support SMEs

Saudi Aramco signed on Thursday a cooperation agreement with the Kingdom’s Small & Medium Enterprises General Authority (Monsha'at) during Biban Eastern Forum held at the Dhahran International Exhibition Center, the state-owned oil firm said in a statement.

The deal aims to promote cooperation in empowering SMEs through improving the Kingdom’s investment environment and providing investment opportunities related to the oil and gas sector, said Mohammad Al-Shammary, Aramco’s vice president of procurement & supply chain management.

The agreement provides SMEs with training and ease of business with Aramco, both directly and indirectly, he said.

The firm has identified over 140 investment opportunities worth SAR 60 billion available to SMEs so they can provide the goods and services Aramco needs, which will help nationalize innovation and advanced technology in sectors serving oil and gas industry, he said.

Al-Shammary pointed out that Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) program aims to boost local and foreign investments through mutually beneficial relationships.

The oil giant has allocated SAR 170 billion annually for spending on goods and services, boosting local supply and local content through a sustainable and responsive supply chain.

During IKTVA program’s fourth annual forum in November 2018, Aramco signed deals worth over SAR 100 billion with suppliers, including 31 trade cooperation agreements. Many of those deals will have a direct impact on the program, as the firm’s local procurement reaches 51 percent.

All Aramco’s suppliers are obligated to participate in the program, which aims at realizing 70% of local content, exporting 30 percent of locally produced energy-related goods and services and generating thousands of job opportunities.