Saudi Aramco has announced its plan to double the amount of local sources used in its supply chain to 70 %, and thus increase its overall direct domestic investments worth $300b by 2021, Trade Arabia informed.

The aim is to boost domestic economy curbed by lower oil prices, and subsequently cut government spending.

Increasing the level of local supplies is a key strategic priority for Saudi Aramco, Arab News reported company’s CEO, Amin Nasser, as saying at the Aramco’s In-Kingdom Total Value Add (IKTVA) program forum in Dammam.

The IKTVA aims at increasing investment, economic diversification, job creation, and developing work force in the country.

Nasser added: “Sourcing a majority of materials, goods and services that we require locally will enable Saudi Aramco to, not only embed greater competitiveness, and efficiency in our operations, but it will also help us fulfill our potential in support of the Kingdom’s growth, job creation, and economic diversification objectives.”

According to Trade Arabia, the program will establish a three-year baseline score for each supplier measured against key metrics for local content and value creation. Jointly with Aramco, each supplier will develop an IKTVA action plan to improve its score, impact, and performance gauged by the level of transparency.

Saudi Aramco Materials Supply has created the Industrial Development & Strategic Development Supply Department to this effect to optimize the supply chain.

AbdulKarim Abdulaziz, Aramco’s Vice President of Materials Supply, explained the IKTVA’s vision: “Our goal is to create a win-win, more formal and systematic mechanism that puts everyone on an equal footing, and increases competition to drive growth.”