Saudi Aramco sets up contractors, suppliers relations center

State-owned Saudi Aramco has launched a contractors and suppliers relations center in the Chamber of Commerce and Industry in Riyadh, the company said in a statement on Monday.

The center was launched to enhance communication with contractors and materials suppliers, and is part of Aramco’s In-Kingdom Value Add (IKTVA) program, which aims to increase local content in products and services.

The IKTVA program is in line with Saudi Arabia’s Vision 2030 plan, which encourages the private sector to manufacture products and provide services in the kingdom and reduce reliance on imports, particularly in the energy sector and related industries.

Saudi Aramco aims to localize up to 70 percent of all spending by 2021, the oil giant said.

The company spent SAR 10 billion on locally manufactured products in 2016, representing 43 percent of total spending – a 14 percent increase from the previous year.