Saudi Aramco has announced it is keen on utilising more products from the local market.

It says it will double to 70 per cent the amount of goods and services it sources from the Saudi market by 2021 in line with its plans to spend $300 billion on its supply chain in the next 10 years.

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, Saudi Aramco president and CEO Amin Nasser said, according to the text of a speech he gave.

He was speaking at the launch of the In-Kingdom Total Value Add (IKTVA) programme, aimed at increasing investment, economic diversification, job creation and work force development within Saudi Arabia. The event was presided by Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Province; Dr Tawfiq Al-Rabiah, Saudi Arabia’s Minister of Commerce and Industry; and Abdullatif Al-Othman, Governor of the Saudi Arabian General Investment Authority.

“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 per cent 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.