Saudi Aramco: Listing the requirements of « IKTVA» program in purchase contracts of up to 79 billion riyals

Launching Tasheel program in Asharqia Chamber.

Saudi Aramco: Listing the requirements of « IKTVA» program in purchase contracts of up to 79 billion riyals.
          In the first day of  the events of Tasheel program, Monday, April 24, in the main headquarters of Asharqia Chamber, the representatives of Saudi Aramco reviewed a number of investment opportunities in "IKTVA" program and the procedures of registering and qualifying suppliers. Asharqia Chamber launched an introductory film about the Tasheel Initiative.

Saudi Aramco strategic development and logistics manager, Nasser bin Saleh Al Yami, said that the requirements of IKTVA program purchase contracts are up to 79 billion SAR, since starting for more than 10 months, stressing that Saudi Aramco percentage of purchase from the local factories is up to 43% in 2016 compared to 2015 which was close to 35%, pointing that the company is looking to achieve 70% of these purchases by the year 2021.

Positive reflection

Al Yami pointed that one of the requirements of the program is to raise the percentage of purchases of local goods and services through the company contractors and local factories, stressing the positive reflection on  small and medium institutions to perform more direct and indirect work with Saudi Aramco, Helping to motivate the private sector in the manufacture of goods and the provision of services locally, through the inclusion of the requirements of settlement in the contracts of the purchasing company.

He said that in order to facilitate the contracting procedures with Saudi Aramco and increase the opportunity of factories, contractors, local service providers and small and medium institutions to do more business, the keenness to modernize many of the procedures followed in addition to providing the means and factors supporting this  plan, In order to facilitate registration and qualification procedures with Aramco, after the success of Aramco office in Asharqia Chamber.

"The company has set up a factory solution center to help local factories  to improve their business and technical capabilities to be a factor in the development of local industrial movement," said Al Yami.

Simplified method

Regarding the investment opportunities, Al Yami said that the e blog of IKTVA program that has recently been updated to offer investment opportunities electronically and in a simplified way in an attempt to attract investors to invest in these opportunities.

Al Yami referred to the Technical Requirements and Quality Requirements (IRTiQA) project and said that the  blog has recently been updated to provide a unified guide for technical requirements and quality to facilitate the procedures of rehabilitating factories and service providers.

Al Yami praised the cooperation between Saudi Aramco and Al Sharqia Chamber, saying that Saudi Aramco relationship with the Chamber is not new. Today participation is an extension of the  mutual cooperation with the Chamber on several levels, including the limited cooperation in the exchange of information and the development of local industrial sectors, He praised the Chamber for its recent initiative to launch Tasheel program, which he said will facilitate the contracting procedures with major companies and offer opportunities to investors, factories, service providers and small and medium institutions. He expressed his happiness that this meeting is in the end of the first year of the start of a program to ensure that the aim is to push the national economy and localization of industries and enhance the total value added of the supply sector.

Localization of industries

Mr. Al Sheikh, a member of the Board of Directors of Asharqia Chamber, presented a memorial shield to Aramco, which was handed over to Mr. Nasser Al Yami in recognition of its continuous efforts and cooperation with the business sector. "Under the new economic plans and the vision of the Kingdom 2030, In the context of increasing national non oil investments, localizing supporting industries and enhancing competitiveness, direct coordination and communication initiatives between the two sides of the national investment (major companies on the one hand and the local investor on the other) have become an urgent demand for diversification, production and operation in the Kingdom.

He pointed that the Chamber presentation of the "Tasheel" initiative was aimed at presenting opportunities for purchasing, manufacturing, services and other opportunities for large companies in front of the business sector. This is a strong support for the investment movement not only in the Eastern Region but also in the Kingdom, He pointed that the meeting between Saudi Aramco and the local investor is a first step followed by similar steps with the rest of the major strategic companies in the Kingdom.

National working hands

The meeting included a visual presentation of Tasheel program of the Chamber and IKTVA launched by Saudi Aramco. The two are in the service of national options in the direction of encouraging local content and nationalization of the national workforce. Its implementation and the pace of implementation of the program.

The meeting was concluded with Mr. Amran Hariri to explain the structure of the program and the investment opportunities. He pointed that there are many opportunities in the fields of drilling and other opportunities that come within of the program. Each opportunity has requirements that must be available in the developed companies such as the national hands rate in the local content in its industries and its future plans to increase its local content of raw materials and others. He added that the valuation was added as a part of the conditions offered by the company, along with the technical and financial evaluation.