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Sat 5 Dec 2015 10:43 AM

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Saudi Aramco outlines plan to spend $300bn over 10 years

Oil giant says it wants to double to 70% the amount of goods and services it sources from the local market

Saudi Aramco outlines plan to spend $300bn over 10 years
KSA energy

Saudi Aramco wants to double to 70 percent the amount of goods and services it sources from the local market by 2021 as the kingdom's oil giant outlined plans to spend $300 billion on its supply chain in the next 10 years, its chief executive said.

The local sourcing target comes at a time of significant financial stress in Saudi Arabia, as the Gulf's largest economy adjusts to a projected period of sustained lower oil prices and subsequent reduced state spending and economic growth.

As part of its local focus for the supply chain, Aramco aims to create around 500,000 direct and indirect jobs for Saudi nationals, Amin Nasser said, according to the text of a speech published on Aramco's website.

"It puts local content at the heart of our procurement process, and will be a requirement of doing business with Saudi Aramco going forward," Nasser said.

The 70 percent figure seemed to include foreign businesses producing goods inside the kingdom.

"Companies that build a deep and lasting relationship with the kingdom by setting up shop here and investing in workforce development will capture the major share of Saudi Aramco's spend on materials and services," Nasser said.

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