Siemens AG has signed a memorandum of understanding to cooperate with the Saudi Aramco Entrepreneurship Center Company Ltd. (Waed) in supporting small and medium enterprises (SMEs) in Saudi Arabia.
Through the new partnership, Siemens AG will work with Waed to actively support the development of the Kingdom’s SME sector and maximize the localization of Siemens’ energy sector supply chain in manufacturing and services, to meet the needs of local, regional and global customers.
Siemens will also partner with the SMEs, developed by Waed, to enhance their competencies and speed up the process of qualifying them to become key suppliers to Siemens.
Jamal Al-Naboulsi, managing director of Waed, said: “We consider Siemens a strategic partner of Saudi Aramco and Waed, and we look forward to actively working with them to maximize localizing their supply chain. One of our targets is to support Siemens’ state-of-the-art turbine manufacturing facility that will open soon in Dammam.
“In addition to local employment, Siemens’ investment will add significant technical and intellectual knowledge and capabilities to the local market, and we look forward to capitalizing on their investment toward maximizing the benefits for the Kingdom’s economy.”
Waed and Siemens agreed that Siemens will initiate discussions with its international suppliers and partners to potentially source the products and services from Saudi Arabia, thereby boosting the Kingdom’s exports.
Jonny Schmidt, chief procurement officer of Siemens Energy, said: “Siemens has been working in Saudi Arabia for more than 80 years, and during this time, it has developed a strong relationship with Saudi Aramco as a trusted partner. It has always been important to us to support the Kingdom’s vision through our comprehensive local presence, and this latest partnership allows us to further strengthen our commitment by identifying and encouraging other Saudi businesses to grow their local footprint.”
Present in the Middle East since 1859, Siemens has been instrumental in the construction of some of Saudi Arabia’s most ambitious infrastructure projects.
One-third of the power used in the Kingdom is transmitted and distributed by Siemens technology. The company is currently building the Siemens Energy Hub Dammam, a manufacturing and service center for gas turbines and rotating equipment that will cater to the Middle East market and create employment opportunities for local talent.
Waed is a wholly owned subsidiary of Saudi Aramco. It was established to play a key role in developing, financing and incubating SMEs in the Kingdom. Waed has unique and comprehensive programs to support entrepreneurship and SME development. Its mission and activities strongly support the Kingdom’s strategic thrust to transform into a knowledge-based economy.