GE Honored for Significant Support to Development of Saudi Manufacturing
Saudi Arabia has many successful industrial manufacturers that deliver high-quality parts to the local market. They’ve done well by delivering production inputs on time and according to specification. But how do these companies get to the next level of excellence? By becoming a supplier to a global giant like GE.
By going through the process of qualifying as a GE supplier, Saudi companies gain much more than just a new customer. As part of its ongoing support to localization and Saudi Vision 2030, GE helps Saudi manufacturers develop their systems and products to achieve international standards.
As a result, they have the opportunity to supply GE in the Kingdom, as well as the potential to be part of the GE global supply chain.
As GE works to expand its local supplier base from 150 companies today to 300 by 2020, it also is working with these manufacturers to enhance the quality of Made in Saudi products and drive exports – both of which are key objectives of Saudi Vision 2030. Meanwhile, as companies expand operations, they create new, high-value manufacturing jobs.
GE is building this Saudi supply chain to support its operations across a number of Saudi manufacturing facilities, including the GE Manufacturing & Technology Center (GEMTEC) and the GE Oil & Gas Multi-Modal Manufacturing Center
As part of these efforts, GE is a partner to Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) program, which launched in December 2015 as a way to formalize Saudi Aramco’s local value creation efforts. The IKTVA Program is part of the company’s roadmap for further localization in support of Saudi Vision 2030 and its goals of talent development and economic diversification.
By 2021 IKTVA seeks to double the percentage of locally produced energy-related goods and services to 70% and to export 30% of the total domestic energy and services produced in the kingdom. It also looks to create thousands of direct and indirect jobs for Saudis across growing industries.
GE’s commitment to building its local operations has been recognized at the Saudi Aramco IKTVA Forum 2016, where GE received the inaugural “Best in Supplier Development” award from Saudi Aramco. This was one of only five awards presented at the first IKTVA Awards, which is held to recognize supplier excellence and commitment to value creation in the Kingdom.
“We are honored to have won the first IKTVA Excellence Award for the ‘Best in Supplier Development’,” said Zaher Ibrahim, CEO of GE Oil & Gas in Saudi Arabia. “This is a strong testament to our long-term commitment to developing local SMEs and building a Saudi supply chain ecosystem that serves the world. Our commitment puts Saudi business professionals and entrepreneurs at the heart of localized manufacturing and reflects our role as an early partner to Saudi Aramco’s IKTVA Program.”
GE’s expanding Saudi supplier base is just part of how the company is building its local operations. GE is working in partnership with customers, government entities, academia and other organizations in areas such as training and leadership development, maintenance and repair, and research and development.
This work extends to the frontiers of innovation at the GE Saudi Technology & Innovation Center (GE STIC) in Dhahran Techno Valley. This center represents the heart of GE’s digital industrial program to drive the digital transformation of industry in the Kingdom.
GE has been a partner to Saudi Arabia for more than eight decades. It has more than 2,000 employees in the Kingdom, with 50% of staff in highly skilled engineering and technology roles, and a Saudization rate of 70%.