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Disclaimer
The information contained herein is made available to the public by Saudi Aramco, and is provided as is. Saudi Aramco
makes no representations or warranties, express or implied, as to the correctness, completeness, or use of this document or the
information therein by any party for any purpose whatsoever. Neither Saudi Aramco nor any of its affiliates shall be liable for
any direct, indirect, incidental, consequential, or punitive damages arising out of or in any way connected with the information
herein. Use of, or reliance on, the information contained in this document does not create any binding legal or other
obligations on Saudi Aramco towards any other party. Reference herein to any specific organization or company does not
constitute or imply Saudi Aramco s endorsement or recommendation of, or preference toward, such entity.

TABLE OF CONTENT
OVERVIEW
CORPORATE VALUES
SUPPLIER CODE OF CONDUCT
SAUDI ARAMCOS SAFETY CULTURE
WHY SAUDI ARABIA? (BUSINESS ENABLERS)
DEVELOPMENT OF LOCAL OIL AND GAS SUPPORT INDUSTRIES
1. INITIAL STAGE: ASSESSMENT
2. INTERMEDIATE STAGE: PROJECT EXECUTION PLAN
3. FINAL STAGE: EXECUTION
TECHNICAL SUPPORT TO LOCAL MANUFACTURERS
1. TECHNICAL REQUIREMENTS
INCENTIVES FOR LOCAL AND FOREIGN INVESTORS
INVESTMENT ENABLERS AT A GLANCE
GUIDELINES FOR LOCAL AND FOREIGN INVESTORS TO
ESTABLISH MANUFACTURING OR SERVICES ENTERPRISE IN THE
KINGDOM OF SAUDI ARABIA (KSA)
1. ESTABLISH CONTACT WITH SAUDI ARAMCO

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3. PREPARE FEASIBILITY STUDIES


4. SELECT LOCAL PARTNER(S), IF NEEDED

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5. APPLY FOR INVESTMENT LICENSE, REFERENCE NUMBER AND


COMMERCIAL REGISTRATION
6. APPLY FOR INDUSTRIAL LAND, IF NEEDED
7. APPLY FOR GAS
8. APPLY FOR LOAN
9. VALIDATE REQUIREMENT AND FACILITY LAYOUT VIA NEW
BUSINESS DEVELOPMENT
10. START CONSTRUCTION
11. APPLY FOR HUMAN RESOURCES DEVELOPMENT FUND
12. INITIATE PLANT APPROVAL AS A LOCAL MANUFACTURER

A WORLD OF OPPORTUNITY: SAUDI ARAMCO


CONTRACTING POLICIES AND REGISTRATION PROCEDURES
A. CONTRACTING POLICIES
B. CONTRACTOR RELATIONS
C. CONFIDENTIALITY

E. SAUDI ARAMCO CONTRACT PROCUREMENT PROCESS


F. BID SLATE DEVELOPMENT
G. JOB EXPLANATION MEETING
H. BID CLOSING DATE AND BID OPENING
I. NEGOTIATION OF COMPETITIVE BIDS
J. CONTRACT AWARD
K. DEBRIEFING MEETING
L. CONTRACT PERFORMANCE AND ADMINISTRATION
M. CLAIMS
N. APPLICABLE LAWS AND MANPOWER
O. CONTRACTOR ASSISTANCE
P. CONTRACTING SUMMARY

PURCHASING POLICIES AND REGISTRATION PROCEDURES

2. CONTACT SAGIA TO UNDERSTAND KSAS ENABLERS AND


INCENTIVES

D. ELECTRONIC CONTRACTING NETWORK (ECN)

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A. PURCHASING POLICIES
B. LOCAL CONTENT FOCUS
C. CAPITAL PROGRAM SOURCING
D. KEY SUPPLY CHAIN STRATEGIES
E. PURCHASING GUIDELINES
F. SUPPLIERS CONTRIBUTION
G. SUPPLIER RELATIONS
H. LOCAL Industrial Development Unit
I. REGISTRATION PROCESS
J. REGISTRATION AS A LOCAL MANUFACTURER
K. REGISTRATION AS A LOCAL VENDOR
L. REGISTRATION AS AN INTERNATIONAL MANUFACTURER
M. INTERNATIONAL VENDORS

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N. INTERNATIONAL SUPPLIER AGENCY ARRANGEMENTS
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O. DISCLOSURE
11
P. AUTHENTICITY OF DOCUMENTATION
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Q. SUPPLIER PERFORMANCE
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R. SAUDI ARAMCO SUPPLIER PORTAL
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CONCLUSION
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CONTACT INFORMATION
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IMPORTANT AND USEFUL LINKS
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OVERVIEW
Saudi Aramcos operations encompass the entire energy
industry and span the globe. The world leader in crude
oil production, Saudi Aramco also owns and operates an
extensive network of refining and distribution facilities,
and is responsible for the gas processing and
transportation installations that fuel Saudi Arabias
industrial sector. An array of international subsidiaries
and joint ventures, including one of the worlds largest
and newest fleet of supertankers, deliver crude oil and
refined products to customers worldwide.
Corporate policy tasks Materials Supply with
responsibility for procurement in support of Saudi
Aramco and we are currently supporting the largest
capital program expansion and level of operations in
company history. To enable Saudi Aramco to support the
worlds energy needs, Materials Supply must manage a
lean, efficient supply chain. This booklet provides an
overview of doing business with Saudi Aramco. It is
intended to be a resource to help build strong
relationships between Saudi Aramco, vendors,
manufacturers, and contractors and to encourage
implementation of supply chain management (SCM) best
practices. Also, the booklet provides an overview of
Saudi Aramco efforts in supporting Saudi Arabias
economy through local content initiatives, and new
business development. Finally, the booklet guides
potential vendors, manufacturers, and contractors on
how to join the Saudi Aramco supply chain. The core
strategies of Materials Supply are:
1. Maximize value added to stakeholders
2. Promote and expand value of local content
3. Continuously develop innovative supply chain
methodologies
4. Develop and retain professional and effective
workforce

CORPORATE VALUES
Saudi Aramco adheres to the
following set of values that are
incorporated in our daily procurement
activities. Similar values are expected
from suppliers and contractors
supporting the Saudi Aramco supply
chain.
Excellence: We drive for best results, and are agile
in addressing new challenges.
Safety: We operate safely and committed to the
well-being of our workforce.
Accountabitiy: We take responsibility for our
actions and for meeting corporate objectives.
Integrity: We follow ethical standards in
conducting our business.
Citizenship: We are positive influence in our
communities.

SUPPLIER CODE OF CONDUCT


Saudi Aramco is committed to conducting its business in
an ethical manner. Saudi Aramco requires its Suppliers
and Contractors to share these commitments and,
therefore, has established the Supplier Code of Conduct.
All registered vendors, manufacturers, contractors, and
sub/contractors with which Saudi Aramco conducts
business are required to acknowledge, and agree to
abide by, the policies and principles set forth in the Code
of Conduct to continue doing business with Saudi
Aramco. This is also applicable to all new potential
vendors, manufacturers, contractors, and
sub-contractors. We also expect our Suppliers and
Contractors to provide this Supplier Code of Conduct

with all Employees within their organizations who are


involved in conducting business with Saudi Aramco.
Our business relationships are founded on trust and we
understand that it is essential that all parties involved in
supply chain procurement activities feel confident in the
fairness and transparency of the related process.

SAUDI ARAMCOS SAFETY CULTURE


Saudi Aramco has a long and proud heritage of
promoting safety as a value and way of life. Materials
Supply encourages our suppliers, contractors and
manufacturers to join in embracing the conviction that
All incidents are preventable.Materials Supply
encourages all supplier and contractor employees to
establish safety as a personal priority while in the
workplace, on the highway or at home. We all must
work together to create and maintain a safety-oriented
culture with zero tolerance for unsafe actions or
behavior.

WHY SAUDI ARABIA? (BUSINESS ENABLERS)


Being one of the worlds Top 10 most competitive
economies makes Saudi Arabia the perfect investment
opportunity. But thats not the only reason why:
Saudi Arabia is ranked 4th in the world for fiscal
freedom and its the 7th most rewarding tax
system in the world.
The 7th freest labor market in the world according
to the World Economic Forum.
One of the worlds 25 largest economies (23rd) and
the largest economy in the MENA region.
One of the worlds fastest growing countries: per
capital income is forecasted to rise from $20,700 in
2007 to $33,500 by 2020.

Its the worlds fastest reforming business climate.


Its the largest free market in the MENA.
Represents 25% of total Arab GDP.
The 13th out of 181 countries for the overall ease of
doing business globally. The 7th in terms of ease of
paying taxes.
The 1st for ease of registering property and its the
largest recipient of Foreign Direct Investment in the
Arab world.
In addition to the above, Saudi Arabia assist investors in
setting up their business in the Kingdom at all aspects.

DEVELOPMENT OF LOCAL OIL AND GAS


SUPPORT INDUSTRIES
1. INITIAL STAGE: ASSESSMENT
If requested by the investor, New Business
Development will assess Saudi Aramcos
consumption for a specific commodity/service.
Assist the investor in developing a preliminary
commercial assessment of his project opportunity
related to the product or service.
2. INTERMEDIATE STAGE: PROJECT EXECUTION PLAN
Following completion of the preliminary study, the
investor will perform a detailed feasibility study
focusing on the intended commodity/service range
and associated financial, operational and
construction elements of the project.
Based on the results of the detailed feasibility study,
the investor creates a project execution/planning
team to develop the new venture.
The investor applies for an investment license at
SAGIAs in-Kingdom (IK) offices or submits an online
application via SAGIAs website.

The investor applies for a reference number, and a


commercial registration. Both applications can be
done at one of the SAGIA offices in KSA.
As applicable, the investor submits an industrial
land allocation application to the respective Royal
Commission or the Saudi Industrial Property
Authority, MODON.
The investor should also apply to the gas regulator
within the Ministry of Petroleum and Mineral
Resources for the allocation of sales gas and/or
ethane if required by the project.
Once the land allocation and/or gas allocation is
secured, the investor can submit a loan application
to any Government organization from which
financing for the project will be sought.
3. FINAL STAGE: EXECUTION
The investor develops a robust execution plan.
Project execution begins with commencement of
plant design and construction.
The investor must apply for a commercial
registration number-through the appropriate office
of the Ministry of Commerce and Industry-when
the plant is about to commence operations or the
service offering is available.
When the plant begins production or the service
offering is available, all required documentation is
submitted to Saudi Aramco for approval.
Once the new manufacturer/service provider is
approved, Saudi Aramco is ready to initiate the
procurement process if prices are competitive, and
delivery terms are acceptable.

TECHNICAL SUPPORT TO LOCAL


MANUFACTURERS:
Support is provided for the manufacturing of oil and gas
equipment throughout all stages.
Before establishing the facility: To assist
potential manufacturers to acquire technical
capabilities in manufacturing specific products.
During the preparation of the facility: To ensure
that manufacturers meet minimum international
and Saudi Aramco requirements.
After commencing production: Provide
continuous support to manufacturers to improve
and promote their capabilities.
1. TECHNICAL REQUIREMENTS
Compliance with international, national and Saudi
Aramco standards.
Compliance with best practices.
Minimum engineering knowledge.
International certifications (ASME, API, etc.).

INCENTIVES FOR LOCAL AND FOREIGN


INVESTORS
Except as otherwise noted and subject to limitations
and/or exclusions published by the Saudi Arabian
Government, the following incentives are provided to
local and foreign investors:
Can own 100 percent of their investment projects
in the Kingdom of Saudi Arabia (KSA), as
applicable.
Shall enjoy all the benefits, incentives and
guarantees extended to nationals (100% Saudi
owned) investments.
Under the current Saudi Arabian Income Tax Law,
companies shall pay a maximum of 20 percent tax

on corporate profits above SR 100,000 (U.S.


$26,700).
Subject to the provisions of the Saudi Arabian
Income Tax Law and Companies Regulations, are
allowed to repatriate 95% of their capital, profits
and dividends (5% is deducted as a withholding tax
and there are no currency conversion or currency
export restrictions).
May freely transfer shares.
Can enjoy:
Incentives provided under the Protection and
Promotion of the National Industries Act,
including exemption from customs duties on
imports of machinery and equipment, raw
materials and spare-parts if imported for
industrial use.

Shall receive the same treatment, protection and


incentives accorded to a national investment since
the Kingdom is a member of the Multilateral
Investment Guarantee Agency (MIGA).
Shall be provided pre-investment assistance by the
Saudi Arabian General Investment Authority
(SAGIA) including:
Conducting feasibility studies for industrial
projects.
Providing information and statistics for
investment projects within the scope of Saudi
Arabias development plans.

INVESTMENT ENABLERS AT A GLANCE


Availability of low cost energy.
Availability of low cost feedstock.

Preferential treatment for national products in


governmental procurement.

Availability of developed industrial sites on short,


medium, and long-term rental at nominal charges.

Can apply for industrial loans on favorable terms


from the Saudi Industrial Development Fund (SIDF)
or other lending agencies.

Provision of basic utilities at government set rates.

Will benefit from the Kingdoms WTO accession


commitments and applicable bilateral investment
protection and promotion agreements signed by
the government.
Subject to Saudization requirements, can sponsor
foreign employees (i.e., to obtain entry and exit
visas and residency and work permits) pertaining to
the investment project.
Can refer disputes to the Board of Grievances and
Investment Disputes Settlement Committee.
Can carry over current tax losses into future years
to offset taxes on future profits.
Can benefit from non-imposition on personal
income tax.

The SIDF is ready to provide interest-free loans up


to 50% of project capital or up to SR 600 million
(U.S. $160 million) whichever is lower. in addition
to 75% for urban areas such as Southern and
Northwestern regions.
Availability of duty-free zone at Jiddah and
Dammam Seaports.
Promotion of non-oil product and service exports by
the Saudi Export Development Center (established
under the umbrella of the Saudi Council of
Chambers of Commerce and Industry).
Availability of financial support from the Human
Resources Development Fund (HRDF) for indigenous
manpower employment, for vocationally qualified
and non-qualified, for a maximum of SR 1,500 (U.S.

Investor Assistance: A service provided to the


investor by SAGIA to make staying in the Kingdom
as enjoyable and stress-free as possible.

$400) per month during training, and up to SR


2,000 (U.S. $533) per month upon employment for
up to 2 years.

Global Outreach: Through nine international


offices on four continents. These offices can be
found in Australia, China, the United States, the
United Kingdom, Germany, France, Italy, Japan,
and Singapore, with more in the pipeline.

GUIDELINES FOR LOCAL AND FOREIGN


INVESTORS TO ESTABLISH MANUFACTURING OR
SERVICES ENTERPRISE IN THE KINGDOM OF
SAUDI ARABIA (KSA)
These guidelines summarize early assistance available to
potential Foreign Investors who wish to establish oil and
gas related facilities in the KSA.
1. ESTABLISH CONTACT WITH SAUDI ARAMCO: New
investors need to initiate communication with Saudi
Aramco (as per the Contact Information Table), to do the
following:
Discuss opportunities and seek advice.

Asaleeb: A SAP-powered (CRM) solution that


enables real-time information exchange between
bankers, executives, lawyers, analysts, and
government agencies.

OBTAIN AN INVESTMENT LICENSE FROM SAGIA

Explore alternative options.


Complete Investment License
Application Form

Request early technical acceptance of products, if


needed.

Submit Application Form to


Customer Relationship Manager

Request information on Saudi Aramcos past


consumption.

HOW CAN SAGIA HELP?


Providing Business Support: Everything from
advice on organizing visas and building regulations,
to financing and legal support.
Business Facilities: SAGIA is planning four
Economic Cities in key.
Qualified Workforce: SAGIA can link businesses
to the ready workforce.

Submit Application Form to


License Evaluator for Approval
Temporary Investment
License is Issued

Additional Requirements

2. CONTACT SAGIA TO UNDERSTAND KSAS


ENABLERS AND INCENTIVES
SAGIAs role is to grant the international investor with
the investment license, and provide further information
on incentives and guidance throughout the process.

Online registration at SAGIAs


website www.sagia.gov.sa

Prerequisite to complete
Commercial Registration

Obtain Residency Card (Iqama)


Through Labor Office

Requirements:
s0ROPOSEDCOMPANYNAME
s"ANKACCOUNTDETAILS
s!RTICLESOF!SSOCIATION
s)QAMA

Register with Ministry of


Commerce & Industry (MOC) for
Commercial Regulations

Register with Department


of Zakat and Income Tax

Register with General


Organization for Social
Insurance

Register with Municipal


Office/Labor Office

Commence Business in Saudi Arabia

Requirement for
manpower
recruitment

Saudi Arabian General


Investment Authority
(SAGIA)
Out of Kingdom Office Locations

Contact Details
Phone

Fax

Contact SAGIA offices at any Embassy of the Kingdom of Saudi Arabia worldwide
Website

www.sagia.gov.sa

Call Center

+966 2 653 9510

+966 2 657 2097

In-Kingdom Office Locations

Phone

Fax

Dammam

+966 3 881 2088

+966 3 881 1990

Riyadh

+966 1 448 4533

+966 1 448 1234

Jiddah

+966 2 657 1580

+966 2 657 2097

Toll free Number

800 244 9990

+966 2 657 2097

Departments

email

Education Sector

education@sagia.gov.sa

Energy Sector

energy@sagia.gov.sa

Health Sector

health@sagia.gov.sa

Information and Communication


Technology Sector

ict@sagia.gov.sa

Legal

legal@sagia.gov.sa

Life Science Sector

life_science@sagia.gov.sa

Marketing & Media Sector

marketing_dept@sagia.gov.sa

Recruitment

recruitment@sagia.gov.sa

Transportation Sector

transportation@sagia.gov.sa

3. PREPARE FEASIBILITY STUDIES


Local and foreign investors need to decide whether the
opportunities are feasible:
If feasible, go to step #4 to select a local partner, if
needed.
If not, go back to step #1 to discuss other options
with New Business Development of Saudi Aramco.

4. SELECT LOCAL PARTNER(S), IF NEEDED


Foreign investors may communicate their interest to the
Saudi Chamber of Commerce to:
Request potential local investors.
Shortlist potential local investors.
Select local investor.

5. APPLY FOR INVESTMENT LICENSE, REFERENCE


NUMBER AND COMMERCIAL REGISTRATION
Foreign investors need to apply by themselves, or
appoint a local partner, or local lawfirm, at one of the
SAGIA in-Kingdom offices (please refer to the Tables in
step #2), for:
Investment License (Industrial or Services).
Reference Number and Commercial Registration.
6. APPLY FOR INDUSTRIAL LAND, IF NEEDED
Upon receiving the Investment License and Commercial
Registration, the investor may apply for industrial land
through MODON:
Saudi Industrial Property Authority (MODON) runs and
supervises all 18 of Saudi Arabias Industrial Cities,
covering about 93 million square meters.

amount of usage (by cubic meters) and location of


the industrial city. It can be provided by the Ministry
of Water & Electricity or through private companies.
Ministry of Water: Rate of water depends on the
amount of water used following specific groups.
Private companies: Rate varies based on type of
water (e.g., drinking water, waste water and
industrial water) and the industrial city.
Diesel: SR.0.36 [U.S.$0.096] per liter.
Industrial Fuel Oil: SR.0.125 (U.S.$0.033) per liter.
Liquid Gas: SR.2.81 (U.S.$0.75)/MMBTU.

ACQUIRING INDUSTRIAL LAND FROM (MODON)


Complete online registration
and Land Request

MODON main role is to establish, develop, operate


industrial cities and provide integrated services to meet
investors needs.

Once approved, MODON


reserves the land

ADVANTAGES OF (MODON) INDUSTRIAL CITIES: Building license will be issued


MODON provides various services to the tenants and
potential manufacturers.
Commercial and Industrial Rates: MODON offers
a competitive annual rate within industrial cities
compared to land elsewhere. The annual rental fees
could be as low as SR 1 (U.S.$0.26) per square
meter.
Electricity: The fees follow:
Starting from SR. 0.05 (U.S.$0.013) per KWH for
residential use.
Starting from SR. 0.12 (U.S.$0.032) per KWH for
industrial use.
Water: Fees depend on the source, type of water,

No

s6IAwww.modon.gov.sa
s,ICENSESHOULDBEFORTHESAME
city in whichthe land is requested
s!TTACH#OPYOF)$ #2AND
Industrial License
Land is reserved for 15 days
and fee payment is required

Investor
pays fees
Yes

MODON issues a 4-month


allocation letter
MODON issues a request for
factory drawing
MODON reviews and issues an
approval letter for the drawings

Objections on drawings will


be returned to investor

Contract to be signed by both,


MODON & Investor

Building license will be issued

License is issued once the


due rent is paid

NOTE: Data illustrated above are valid as of published date.

Investors may also acquire industrial lands through The Royal Commission for Jubail and Yanbu (RCJY).
Industrial Land

Saudi Industrial
Property Authority
(MODON)

The Royal
Commission for
Jubail and Yanbu
(RCJY)

Contact Details
Location

Phone

Fax

Head Office, Riyadh

+966 1 283 1331

+966 1 477 5235

Dammam 1st

+966 3 847 3331

+966 3 847 2509

Dammam 2nd

+966 3 812 1019

+966 3 812 1118

Riyadh 1st

+966 1 446 0848

+966 1 446 0779

Riyadh 2nd

+966 1 265 2280

+966 1 265 2059

Jiddah 1st

+966 2 636 4929

+966 2 636 4712

Jiddah 2nd

+966 2 636 4929

+966 2 636 4712

Jubail

+966 3 341 4039

+966 3 341 6209

Website

www.modon.gov.sa

www.rcjy.gov.sa

7. APPLY FOR GAS


Investors need to prepare an execution plan to apply for gas allocation, if needed, via the following contacts:
Industrial Land

Contact Details
Location

Phone

Fax

Website

Saudi Aramco

Dhahran,
East Park, Building
7002

+966-3-862-5567

+966-3-862-5585

www.saudiaramco.com

Ministry of
Petroleum and
Minerals

Riyadh

+966-1-476-6930

+966-1-285-8753

www.mopm.gov.sa
info@mopm.gov.sa

8. APPLY FOR LOAN


Investors may apply for a loan if needed. This step could be initiated in parallel with step #7.
INTRODUCTION TO (SIDF)
The Saudi Industrial Development Fund (SIDF) provides financial assistance in the form of short-term loans to investors
in industry, in addition to offering technical, administrative, financial, and marketing advice.
(SIDF) SUPPORT TO BORROWERS
Financial Management: To help project sponsors
to select and implement suitable financial systems.
Operation Management: The funds consultants
help project sponsors to define their goals and
objectives, select a viable business plan, implement
proposed policies, hire qualified personnel, and
apply systems and controls, which lead to the
success of the project.
IT Consultancy: ITD provides technical advice to
maximize the benefits of the new Information

Technologies as part of the funds loan request


processing procedure.
Technical Management: The funds technical
consultants provide relevant consultation on various
activities aimed at increasing production efficiency.
Marketing Management: SIDF marketing
consultants provide assistance in collecting and
analyzing marketing information to build a solid
base for management decisions.

SIDF-BORROWERS CASH FLOW:


Description

Cash Flow

Analysis and Evaluation by SIDF.

Riy- (1.5%-2.5%) of the total loan by SIDF


deducted from the first loan disbursement.adh

Disbursement payments (Borrower has to submit


all bills to get the payment).

Riy+ 50% of the borrower expenses.adh

Visits by SIDF every 4-6 months.

- $1,000 to $5,000 for each visit (through check).

Repayments (the first one starts after 1-1.5 year


from production).

- % of the total Repayment agreed on.

Follow-up by SIDF every 4-6 months until all the


repayments completed.

- $1,000 to $5,000 for each visit (through check).

SIDF LOAN APPLICATION

Marketing Consultancy
Division
Preparation of Market
Report

1. Application Form
2. Industrial License
3. Commercial Registration
4. Feasibility Study

Technical Consultancy
Division

Application Registration
Preparation of Feasibility Study

Preparation of Technical Reports

Research Division
Conducting Market
Research

Files

Loan Committee

Non
Approved

Board of Directors/
Mgt. Committee

Issuance of Committee Letter

Auditing and Financial


Analysis Division

Legal Department
1. Signing of the Loan
Agreement
2. Documentation of Security

Auditing Expenditures
Credit Division
1. Loan Disbursement
2. Monitoring of Performance and
Loan Repayment Follow-up

Contact Details

Industrial Land

Saudi Industrial
Development
Fund (SIDF)

Location

Phone

Fax

Website and email

Riyadh

+966-1-477-4002
(Ext. 131, 127, 101)

+966-1-477-5138

www.sidf.gov.sa
sidf@sidf.gov.sa

9. VALIDATE REQUIREMENT AND FACILITY LAYOUT


VIA NEW BUSINESS DEVELOPMENT
Investors need to validate Saudi Aramcos requirements
and define the product mix and share facility layout with
Saudi Aramco, where New Business Development (please
refer to the Table in step #1) will coordinate the
validation internally.

11. APPLY FOR HUMAN RESOURCES DEVELOPMENT


FUND
Investor could apply to the Human Resources
Development Fund (HRDF), during recruitment and to
obtain monthly financial support for certain periods, for
hiring qualified professionals and technicians and
unskilled Saudi personnel.

10. START CONSTRUCTION


Investor then begins construction of the facility.
HR Fund

Human
Resources
Development
Fund (HRDF)

Through HRDF website


www.hrdf.org.sa

Contact Details
Location

Phone

Fax

Website and email

Dammam

+966-3-833-0765

+966-3-835-4689

www.hrdf.org.sa
complaints@hrdf.org.sa

Employer completes online


registration form
HRDF reviews and approves
registration details
Employer receives confirmation
and login details
Employer requests financial
support online
HRDF reviews and approves
financial support request

12. INITIATE PLANT APPROVAL AS A LOCAL


MANUFACTURER
Investors need to coordinate with New Business
Development to initiate approval for their new facility as
a local manufacturer.
By then, the new manufacturers/service providers would
receive preferable treatment and receive the Request
for Quotation/Bid, provided they are able to meet
delivery schedules, and their prices are competitive and
fall within equivalent guidelines.

By then, the new manufacturers/service providers would


receive preferable treatment and receive the Request for
Quotation/Bid, provided they are able to meet delivery
schedules, and their prices are competitive and fall within
equivalent guidelines.

A WORLD OF OPPORTUNITY: SAUDI


ARAMCO

must be adhered to and a high standard of ethics


and fairness shall be maintained.

To maintain the Companys production at optimal levels


as well as support the robust capital program, Saudi
Aramco Materials Supply procures and manages a full
range of material commodities and services. We strive to
deliver world-class procurement and supply chain
excellence to Saudi Aramco. An organization with a
global presence, Materials Supply pursues business
relationships based on cooperation, trust, reliability and
communication. Materials and services are procured
through manufacturers, suppliers and contractors that
meet high quality standards, exceptional levels of service,
competitive pricing, solid delivery performance, effective
after-sales support, and efficient supply chain
management programs.

2. All contracts must be in writing and shall be


executed before committing work to a contractor,
or a contractor starting work.

Saudi Aramco values transparency and long-term


cooperation and stands ready to collaborate with
manufacturers, contractors and suppliers in addressing
challenging safety and environmental issues. Saudi
Aramco continues to promote long-term efforts to
stimulate and support development of the local economy
of Saudi Arabia. We will now outline the policies used by
Materials Supply to manage our global supply chain.
If your company is interested in service related
opportunities with Saudi Aramco please thoroughly
review the following section, Contracting Policies and
Registration Procedures. Information related to
opportunities for suppliers can be found in the section
titled Purchasing Policies and Registration Procedures.

5. For work to be performed in Saudi Arabia, Saudi


Aramco will normally consider a contractor's
technical and financial qualifications and will award
contracts to only those contractors who are
properly registered or licensed to conduct business
in Saudi Arabia.

CONTRACTING POLICIES AND


REGISTRATION PROCEDURES
A. CONTRACTING POLICIES
The following policies are highlighted for your
information:
1. Saudi Aramco policies regarding business ethics

3. Lump Sum contracting is normally the preferred


contract form when it can be properly used.
4. Competitive bidding will be used whenever
possible to select the technically and financially
qualified contractor whose bid represents the least
overall cost to Saudi Aramco. Negotiated
contracting shall only be used in exceptional
circumstances and must be adequately justified and
approved in advance by Saudi Aramco
Management.

6. It is Saudi Aramco's policy to encourage the


continued development of a strong, broad-based
local contractor community in its various areas of
operations. In support of this policy, the Company
distributes Saudi Aramco's contract work widely as
possible among qualified Saudi Arab contractors.
B. CONTRACTOR RELATIONS
LOCAL (IN-KINGDOM) CONTRACTORS
Saudi Aramco requires current detailed information
on Saudi Aramco contractors. Contractors new to
Saudi Aramco may register their interest through
the Saudi Aramco Contractor Registration Web site
(http://esr.aramco.com). The registration process
merely provides Saudi Aramco with current contact

and other basic information about the contractor.


After successful registration with Saudi Aramco,
contractors will be granted online access to the
Electronic Contracting Network (ECN) system. ECN
is described in details in the next section.

disclose any information contained in a screening inquiry


and an Invitation for Proposal to a third party without
obtaining Saudi Aramco's prior written approval. In this
regard a contractor may be required to sign a
confidentiality agreement.
D. ELECTRONIC CONTRACTING NETWORK (ECN)
The Electronic Contracting Network (ECN) is a
comprehensive and user-friendly Web-based system that
automates almost all business functions and activities
that occur during the procurement of contracts and
enables Saudi Aramco and its contractors to interact
with each other online. ECN is accessible through the
Saudi Aramco Vendor Portal (http://vendor.aramco.com).
In addition, ECN will provide each Saudi Aramco
registered contractor with their own Contractor Profile
section in which they can present their qualification type
information and update such information online at
anytime from anywhere. ECN has the following sections:

INTERNATIONAL CONTRACTORS
Contractors who wish to do business with Saudi
Aramco should communicate to the appropriate
Saudi Aramco affiliate company, Aramco Services
Company (ASC), Aramco Overseas Company (AOC)
and Aramco Asia Company (AAC) located in their
geographical area shown in the contact table
below.
C. CONFIDENTIALITY
Saudi Aramco considers all aspects of any contractor
screening inquiry and an Invitation for Proposal to be
confidential, which includes all bid documents,
attachments thereto and all drawings. A contractor must
agree before responding to a screening inquiry and
bidding on Saudi Aramco work to limit the disclosure of
information contained therein to only those employees
who require it either to respond to an inquiry or to
prepare a bid. A contractor must also agree not to

1. ONLINE CONTRACTOR REGISTRATION


Contractors will be able to register with Saudi
Aramco online and conveniently present their legal
contact, as well as other required information. Each
registration application will be reviewed and
approved online by designated Saudi Aramco
employees.
Upon processing each registration request, each
contractor officer designated by the contractor to
interact with ECN (Designated Contact) will
receive an ECN "USER ID" and temporary password
that will enable the contact to access ECN, enter
information in their company's Contractor Profile,
and interact with Saudi Aramco in connection with
specific contract procurements.
Contractors are also required to update their
information at least once annually and whenever
substantive changes occur.

2. CONTRACTOR PROFILE
This section will enable contractors to present
comprehensive qualification-type information, and
update such information online at any time. The
Contractor Profile section will enable Saudi Aramco
to instantly view contractors' latest information
online. Therefore, it will be in each contractor's best
interest to continuously update this section and
ensure that it accurately communicates the
contractor's capabilities.
3. CONTRACT ROOM
The Contract Room is a virtual workplace that
provides comprehensive automation to almost all
activities and functions that occur during a contract
procurement process. The Contract Room will be
the main venue where all concerned Saudi Aramco
organizations will interact with each other and
where contractors will interact with Saudi Aramco.
Both Saudi Aramco and Contractors will find
numerous improvements and benefits resulting
from interacting online via the Contract Room.
4. USER HOME PAGE
ECN will provide each user a personalized Home
Page, through which the user can access any of his
contract rooms, pending tasks and other useful
functions and information.
All information supplied by the contractor to Saudi
Aramco is kept confidential and made available
only to those organizations within Saudi Aramco
that require such information. Financial information
is reviewed and retained only by Saudi Aramco's
Treasurer's organization.
E. SAUDI ARAMCO CONTRACT PROCUREMENT
PROCESS
The Saudi Aramco contract procurement process is

described in next sections. It is Saudi Aramco's intention


to make clear that communications during all stages of
contract procurement between bidders and Saudi
Aramco must be authorized and conducted by the
Contracting Department.
F. BID SLATE DEVELOPMENT
Saudi Aramco uses four different methods for procuring
contracts as follows:
1. Open Bidding-A notice is posted on Saudi
Aramco Bulletin Boards in the ECN. This
Information for Bidder Notice provides general
overall description of the work, any
pre-qualification requirements that must be met
and the date of the Job Explanation Meeting. Any
contractor may bid when this procurement method
is used.
2. Open Solicitations with Selective Bidding-These
open solicitations are also posted on the Saudi
Aramco Bulletin Board available in the ECN to allow all
contractors the equal opportunity to indicate interest
in submitting a bid. After a careful analysis of the
responses received for the solicitation, Saudi Aramco
will select those contractors considered to be best
qualified for bidding the work and directly extend to
them an invitation to the Job Explanation Meeting.
This is the Company's most common and preferred
procurement method.
3. Restrictive Selective Bidding-Saudi Aramco
reviews the record of contractors who have
indicated capabilities in a particular type of Saudi
Aramco work and then selects those contractors
considered most capable of performing the work.
Saudi Aramco uses this method when it determines
that the contract requirements are so stringent that
only a few contractors would qualify or the high
cost of preparing a bid indicates that size of the bid

slate should be limited.


4. Sole Source-Saudi Aramco does not favor this
means of contract procurement, and it is used only
after a careful review of the unique circumstances
that may justify it. Sole Source procurement is
justified, for example, when a contractor provides a
unique proprietary service, when there is an
unusual urgency to the work, or when a contractor
has mobilized and the limited work scope does not
justify mobilizing another contractor. For a
contractor's commercial bid to be considered for
any contract, the contractor must be considered
qualified to perform the work. Saudi Aramco
reviews technical and financial qualifications and
determines whether a contractor is qualified.
Preliminary contractor capabilities are determined
primarily from the ECN including contractor performance
reports on other contracts. Additional pre-qualification
or technical proposal information unique to the specific
procurement may be requested from the contractor.
Saudi Aramco's Treasurer's Organization determines the
financial capabilities of contractors. Contractors with
assets above $10,000,000 who wish to be considered
for contracts must also submit current audited financial
statements to the Treasurer's Organization. The
Treasurer's Organization maintains all financial
information in a strictly confidential manner.
G. JOB EXPLANATION MEETING
A Job Explanation Meeting (JEM) is held to explain the
contract, describe the scope of the work and to answer
any questions concerning the contract or the
procurement process. If possible, before the Job
Explanation Meeting, the complete bid package is
distributed to the bidders for review. This package
consists of a pro forma contract, the scope of work
including plans and specifications of the proposed

project, general instructions to the bidders for preparing


the bid, and any special instructions that the particular
project may require.
In many cases, the bidders are invited to visit the
proposed contract work site to familiarize themselves
more fully with the work requirements. During Job
Explanation Meetings and job site visits bidders are
encouraged to ask questions. If answers to these
questions are not readily available, both the question
and the answer are communicated to all bidders in
writing. Questions that arise following the Job
Explanation Meeting must be submitted in writing to the
Contract Representative. The Contract Representative
will respond to the questions in writing and provide a
written copy of the questions and answers to all bidders.
The Contract Representative will also transmit to all
bidders, in writing, any modifications to the bid package
during the bidding period.
H. BID CLOSING DATE AND BID OPENING
The Instructions to Bidders will clearly specify a bid
closing date and a time. Bids must be deposited
according to the Instructions to Bidders in the
Contracting Department's locked bid box. The bid boxes
are located in North Park II Building 3301, Contracting
Department's Reception Center Room # A162, Dhahran.
It is important that bids be submitted in duplicate and
that they are clearly labeled in accordance with the
instructions.
In many cases bidders are requested to submit separately
two proposals, a technical proposal and a commercial
proposal. In these instances, the bidder's technical
proposal is evaluated first and the bidder's commercial
proposal will be evaluated only if the technical proposal
is determined to be sufficient for the contract
requirements.
All bid openings are conducted by the Contracting

Department and the Finance Organization in strict


compliance with Saudi Aramco procedures designed to
assure confidentiality and fairness to all bidders.
Following the bid opening there will be no information
released on the progress of the bid evaluation. This
information is strictly confidential.
I. NEGOTIATION OF COMPETITIVE BIDS
Bidders should be aware that Saudi Aramco does not
negotiate base bids that have been solicited on a
competitive basis. Exceptions to this policy are very rare
and if at all considered require the approval of Saudi
Aramco's Corporate Management. Saudi Aramco
assumes that a bidder's first price is its best price and its
last price. Accordingly, the Company does not expect
contractors to include a contingency for negotiation
because such negotiations with respect to the bidder's
basic proposal will not take place.
Saudi Aramco may conduct clarification meetings with
one or more bidders before award, to ensure that both
parties have a clear understanding of the work and the
terms and conditions under which it will be performed.
Base bids submitted in competitive circumstances are not
negotiated or changed at these clarification meetings.
J. CONTRACT AWARD
When the bid evaluation has been completed by a Saudi
Aramco Bid Review Team, the recommended award is
presented to Saudi Aramco Management for approval.
Procurement plans and award recommendations are
reviewed by Saudi Aramco Corporate Management for
high value contracts.
After the contract has been signed on behalf of Saudi
Aramco, two original copies are presented to the
selected bidder for signature. The contract is not binding
unless signed by both Saudi Aramco and the contractor.
After a contract has been awarded, all unsuccessful

bidders are notified by telex or facsimile for open


bidding, by general announcement on the Saudi Aramco
Bulletin Board located in Dhahran or Jiddah.
K. DEBRIEFING MEETING
An unsuccessful bidder may, request in writing from the
Contracting Department, that a meeting be held to
determine why the contractor's bid or pre-qualification
proposal was not successful. Saudi Aramco encourages
such meetings because they help contractors improve
subsequent proposals. Proposals from competitors are
never disclosed to the contractor requesting the
debriefing. A contractor will be informed why Saudi
Aramco decided not to award it the contract or select it
for a bid slate. Debriefing for unsuccessful
pre-qualification will not be held until after the job
explanation meeting. Debriefing for unsuccessful
contractors will not take place until after contract award.
If a debriefing meeting is requested, it should be done
within one month after the contractor is informed it was
unsuccessful. This is to ensure that Saudi Aramco has
retained all the relevant documentation to make the
debriefing meaningful.
L. CONTRACT PERFORMANCE AND
ADMINISTRATION
Day to day administration of the contract is the
responsibility of the contract proponent organization.
Contract changes are negotiated with the contractor as
needs arise and take the form of either change orders or
amendments to the base contract.
M. CLAIMS
Saudi Aramco contracts also provide for the fair and
equitable resolution of disputes that may arise between
Saudi Aramco and contractors. The Claims and Technical
Services Unit of the Contracting Department is

responsible for the resolution of claims. Claims must be


filed according to the terms of each contract. Resolution
occurs through Saudi Aramco's claim process and
approved by the Saudi Aramco contract signatory.
Contractors have the right to appeal that decision
through the establishment of a Saudi Aramco Contract
Dispute Settlement Board (Appeal Board). In addition,
Saudi Aramco contracts normally contain arbitration
provisions.
N. APPLICABLE LAWS AND MANPOWER
Contractors are expected to comply with all applicable
governmental laws and regulations and to structure their
bids accordingly.
Saudi Aramco strongly encourages its contractors to
employ Saudi Arab nationals for the performance of
Saudi Aramco contract work. When the contractor finds
it necessary to employ foreign labor, compliance with the
Saudi Arabian Government regulation and control of
visas and Iqamas is the responsibility of the contractor.
Saudi Aramco does not provide assistance in this regard.
O. CONTRACTOR ASSISTANCE
Questions regarding specific contract procurement
should be referred to the Contract Representative in the
Contracting Department responsible for that
procurement. For general information or for submitting
updated contractor information, contractors may contact
the Contractor Relations and Document Control Unit in
the Contracting Department, Dhahran or the
Contracting Services Unit in Jiddah.
P. CONTRACTING SUMMARY
Saudi Aramco's major contracting objectives are to
complete the work on time in conformance with
demanding technical standards and at the least overall
cost to Saudi Aramco. To meet that objective, Saudi

Aramco conducts its contract procurement in a fair and


equitable manner and endeavors to create and maintain
a procurement environment attractive to qualified,
competitive contractors.
Saudi Aramco welcomes all qualified contractors to
compete for Saudi Aramco contracts.

PURCHASING POLICIES AND


REGISTRATION PROCEDURES
A. PURCHASING POLICIES
Saudi Aramco pursues best practice solutions for
developing reliable suppliers to obtain best value, quality
and supply chain security. These objectives are being
achieved through a variety of strategies including
agreement based procurement, cost-effective long-term
supply contracts, supplier managed inventory programs
and innovative solutions such as corporate level
agreements to consolidate materials, spare parts and
services spend. The continued focus is to support growth
of Saudi Arabias national economy by encouraging
in-Kingdom manufacturing and development of local
stocking distribution.
B. LOCAL CONTENT FOCUS
Saudi Aramco preferentially purchases products
manufactured in Saudi Arabia in accordance with various
commercial considerations such as price, quality,
availability, marketability and transportation, while also
affording foreign-owned enterprises adequate
opportunity, in conformity with customary practices, to
compete for such purchases.
HIGHEST PREFERENCE
Goods & Services Originating From National Companies
Goods Stocked By National Companies
Foreign Goods & Services Provided By National Companies
Goods & Services Provided By Foreign Companies
LOWEST PREFERENCE

We envision local manufacturing expanding to provide a


significantly greater percentage of Saudi Aramco
material requirements with local stocker distributors
providing the greatest portion of the balance. These
close relationships will foster continued development of
our national supply and service base into recognized top
echelon providers within the Oil & Gas industry.
C. CAPITAL PROGRAM SOURCING
A large percentage of all Materials and Services to
support Saudi Aramcos massive capital program and
various joint venture partnerships are sourced by Lump
Sum Turn Key (LSTK) contractors worldwide. To obtain
information on supply chain opportunities in these areas
please communicate with the respective contractor
directly.
D. KEY SUPPLY CHAIN STRATEGIES
To meet the challenge of promoting the development of
local sources of supply while achieving Saudi Aramcos
commercial requirements, Materials Supply is pursuing a
number of key supply chain strategies:
Competitive Bidding supports transparency and the
commercial interests of both Saudi Aramco and the
local manufacturer/supplier community.
Where appropriate, total cost of ownership will be
the basis for selection, rather than initial acquisition
price.
Made in Saudi Arabia is in the Companys
commercial interest and essential to the long-term
growth and economic well-being of the Kingdom
and will be accomplished via promotion of Foreign
Direct Investment (FDI) and support of local
in-Kingdom manufacturing.
Utilizing and supporting Best-in-Class Suppliers.

Expanding purchase agreement coverage by


utilizing cost-effective lean procurement practices.
Increasing National Logistics and Warehousing
Capabilities.
Maximizing e-Procurement and e-Content.
Developing Local SCM skills and expertise of Saudi
Aramco Material Supply personnel, our customers,
and our valued suppliers.
E. PURCHASING GUIDELINES
The citizenship role of Saudi Aramco in supporting
development of the national economy is closely
associated with the evolving capabilities of the national
market to effectively support Saudi Aramcos
requirements for materials, products and services on a
competitive basis.
Saudi Aramco sourcing activities are governed by the
following:
All purchasing transactions are to be conducted
fairly, honestly, with high integrity and in
accordance with the highest ethical standards and
all applicable laws.
Considering quality, delivery and price, reliability of
vendor, operational costs, in-Kingdom after sales
support, end-use cost, work simplification and
standardization in making placement decisions.
Procuring goods from financially and technically
qualified and reliable sources.
Focusing on total cost of ownership.
Encouraging the Saudization of its suppliers work
force.
F. SUPPLIERS CONTRIBUTION
Suppliers represent an integral part of the Saudi Aramco
supply chain by:

Adding value through product quality and support,


competitive pricing, and focusing on lean supply
chain models.
Utilizing enabling technologies that allow supply
chain participants to effectively access relevant
supply chain information.
Supporting effective Human Resource
development/training programs for their
employees.
Seeking new opportunities for local manufacturing.
Building a robust Information Technology
infrastructure with e-business transaction capability.
G. SUPPLIER RELATIONS
The business relationship between Materials Supply,
suppliers and contractors requires sustained and focused
commitment to continuously improve service and
efficiency. Materials Supply has implemented effective
supply chain strategies and industry best practices as part
of normal procurement activities. Together, suppliers and
Saudi Aramco provide consistent value and service by:
Developing value-added relationships and greater
levels of trust.
Delivering greater customer satisfaction.
Reducing inventory throughout the supply chain.
Conducting joint process improvement meetings.
Deploying technology effectively.
Sharing information.
Implementing cost reduction opportunities
Continuously improving all SCM practices.

H. LOCAL INDUSTRIAL DEVELOPMENT UNIT


One of Saudi Aramcos corporate strategies is to support
growth of the Kingdoms economy by promoting local
manufacturing. Saudi Aramco Materials Supply has
recently created a Local Industrial Development Unit
(LIDO) to facilitate and maximize Saudi Aramcos
purchase of commercially and technically competitive
locally manufactured materials. The (LIDO) is available to
provide support to local manufacturers and promote
new business opportunities by sharing information on
business opportunities and collaboration.
In addition, Saudi Aramco has established the New
Business Development (NBD) organization. The main
mission of NBD will be to enhance the companys
potential to increase revenue through all means
permitted under the Saudi Aramco articles of
incorporation and to support the kingdoms goals of
maximizing economic and social benefits from its natural
resources. NBD is responsible for identifying, receiving,
evaluating, shaping and closing new business deals
which will create value for Saudi Aramco and will foster
the development of the Kingdom (economic growth,
increased private sector participation, job creation).
I. REGISTRATION PROCESS
To conduct business with Saudi Aramco, potential
suppliers and manufacturers must register online
(http://ebusiness.aramco.com) with Materials Supply to
obtain a vendor identification number. The registration
steps for local manufacturers and suppliers are
summarized below.
J. REGISTRATION AS A LOCAL MANUFACTURER
Supplier Registration Unit (SRU) acts as the single
point-of-contact for local manufacturer registration with
Saudi Aramco. To commence the registration process the
manufacturing plant must be fully operational and meet

either International Organization for Standardization


(ISO) or Saudi Arabian Standards Organization (SASO)
technical qualifications.
REQUIRED DOCUMENTS
To register a local manufacturing facility the following
documents must be submitted to SRU (See Contact
Information Table):
Acknowlegment of Saudi Aramcos supplier code of
conduct.
Local Manufacturer Registration Form.
Emergency & Fire Response Plan.
Civil Defense License*.
Uncontrolled copy of the Quality Management
System (QMS) Manual as per latest ISO 9001 year
2000 requirements.

Copies of National ID or Iqama (if applicable) of all


owners/partners.
Copy of the Articles of Association (For company
only)*.
Bank Financial Statement and account information
indicating Bank name, address, and account
number
(Requirements with* must be submitted as original
or authenticated documents for review and
verification).
The above documents should be submitted in four CDs
and four hard copies for New Registration.
Names of Saudi Aramco employees and their immediate
relatives (spouses, parents, sons and daughters) who are
partners or have an ownership stake, or are your
employees must be fully disclosed.

List of quality control procedures.


Organization chart including QA/QC Department.
List of major users of the products with address,
contact names & phone number.
Brochures, technical data, and specifications for
each product.
List of major equipment installed at the
manufacturing plant.
Valid Zakah certificate.
General Organization for Social Insurance (GOSI)
certificate*.
Valid commercial registration*.
Factory location map on Company Letterhead.
Copy of Industrial licenses and any other
government permits*.

APPROVAL PROCESS
The above documents will be thoroughly reviewed to
ensure completeness and accuracy. A factory visit will be
scheduled whereby a preliminary screening evaluation
will be conducted. Any corrective action that may be
required will be reported to the facilitys management.
The concerned Saudi Aramco organizations will review
the plants technical documentation and QMS manual
when it is determined that the factory is ready for
comprehensive inspection. Pending satisfactory
completion of this review an official plant survey will be
scheduled. The official survey findings will be
communicated to the plants management noting any
deficiencies requiring corrective action. If results of the
plant survey are acceptable, notification in the form of
an approval letter will be sent to the plants management
indicating approval for specific products and providing a
unique vendor identification number. It is important to

note that registration as an approved manufacturer with


Saudi Aramco is not a guarantee of future business.
K. REGISTRATION AS A LOCAL VENDER
SRU is the single point-of-contact for local supplier
registration with Saudi Aramco. To commence the
registration process as a local supplier, the following
documents must be submitted:
Acknowlegment of Saudi Aramcos supplier code of
conduct.
A letter of introduction identifying and detailing the
vendors business activities.
Completed Saudi Aramco Registration Form.
Valid copy of the Commercial Registration (CR) in
the city in which the company is to be registered
allowing the company to trade in the offered
materials*.
Valid Zakah certificate.
Original Copy of the General Organization for
Social Insurance (GOSI) certificate*.
Copies of National ID or Iqama (if applicable) of all
owners/partners.
Copy of the Articles of Association in case there is
more than one owner (shareholders).
Civil Defense Certificate*.
Emergency & Fire Response Plan.
A bank letter of reference, confirming that the
registering supplier would be granted suitable
credit facilities.
A map showing the location of the registering
suppliers office and warehouse on official
Company letterhead.
Authenticated agency agreements from

in-Kingdom and/or out-of-Kingdom manufacturers,


already pre-qualified and/or registered with Saudi
Aramcos overseas offices, in case the supplier
desires agency status.
Please Note:* Requirements must be submitted as
original or authenticated documents for review and
verification.
Saudi Aramco Materials Supply will evaluate all related
documents and, if necessary, conduct a survey of the
potential suppliers premises. Once approved as
technically and commercially acceptable, the supplier will
be registered with Saudi Aramco Materials Supply by
assignment of a unique vendor identification number. It
is important to note that registration as an approved
Saudi Aramco supplier is not a guarantee of future
business.
L. REGISTRATION AS AN INTERNATIONAL
MANUFACTURER
Manufaturers wishing to become an approved Saudi
Aramco supplier or existing Saudi Aramco approved
international manufacturers offering additional products
should communicate to the appropriate affiliated
company, ASC, AOC or AAC located in their
geographical area (see Contact Information Table). ASC,
AOC or AAC will evaluate the information provided and
determine whether there is a business need for
additional products/suppliers. The registration
documents will be forwarded to Strategic Procurement
and Sourcing Division (SPSD) for strategic sourcing for
extensive evaluation in terms of technical, financial and
strategic needs. Once, SPSD decides that the applying
manufacturer is a potential source the approval process
is initiated. Concerned Saudi Aramco organizations will
review the plants technical documentation and QMS
manual when it is determined that the factory is ready
for comprehensive inspection. Pending satisfactory

completion of this review an official plant survey will be


scheduled. The official survey findings will be
communicated to the plants management noting any
deficiencies requiring corrective action. If results of the
plant survey are acceptable, notification in the form of
an approval letter will be sent to the plants management
indicating approval for specific products and providing a
unique vendor identification number. It is important to
note that registration as an approved manufacturer with
Saudi Aramco is not a guarantee of future business.
M. INTERNATIONAL VENDORS
Suppliers wishing to become an approved Saudi Aramco
vendor or existing international suppliers offering
additional products should communicate to the
appropriate affiliated company, ASC, AOC or AAC,
located in their geographical area (see Contact
Information Table). ASC, AOC or AAC will evaluate the
information provided and determine whether there is a
business need for additional products/suppliers. Any
further evaluation will depend on whether the supplier is
deemed financially and technically acceptable.
International suppliers who demonstrate that products
offer significant technical or commercial benefit to the
Company will be closely considered.
N. INTERNATIONAL SUPPLIER AGENCY
ARRANGEMENTS
Prior to doing business with Saudi Aramco the
international supplier must first register with Saudi
Aramcos out-of-Kingdom affiliate. Supplier located in
North or South America should register with Aramco
Services Company (ASC). Suppliers located in other
geographical regions should register with Aramco
Overseas Company B.V. (AOC) see Contact Information
table. Suppliers in AAO giographical region see
Contact Information table. For local vendors to be
registed/approved as an agent to registered/approved

international manufacturer, should present Agency


Certificate issued by Minsitry of Commerce and Industry
(MOCI), covered by a writtent request signed by
authorized personnel and authenticated by Chamber of
Commerce. Any change to exclusive agency agreements
with the Saudi vendor (including termination) should be
immediately communicated to Saudi Aramco.
International suppliers are expected to fulfill all existing
purchase order obligations with their former Saudi
vendors regardless of changes in agency agreements and
associations.
O. DISCLOSURE
Any changes in company ownership, commercial
activities, and contact information by registered
suppliers, whether they are vendors or manufacturers,
should be communicated immediately to Supplier
Relations Management Unit.
Requests for changes in company names and ownership
related to the death of an owner must include a
Commercial Registration (CR) cancellation certificate
obtained from the Ministry of Commerce before
registration under a new CR can be processed. Saudi
Aramco should be informed of the owners death within
sixty (60) days or risk indefinite suspension.
Every supplier (international or local) must disclose to
Saudi Aramco any and all ownership or commercial
relationships which suppliers company or establishment
and its owners and immediate family members have with
any Saudi Aramco employee, his/her immediate family
members and any business enterprise owned or
controlled by any of them. Such disclosure shall include,
but not be limited to, information on ownership stakes
and/or positions held by such immediate family members
in the suppliers business and the nature of their
employment, if any. Every supplier must immediately
disclose to Saudi Aramco any employee end of service

case for those who have been granted access to Saudi


Aramcos vendor portal. All changes in this information
are to be promptly reported to allow Saudi Aramco to
determine if any potential conflicts of interest exist.
P. AUTHENTICITY OF DOCUMENTATION
All suppliers (international and in-Kingdom) must attest
to the accuracy and completeness of all documentation
and submittals to insure information provided is correct,
up-to-date, and accurate. Noncompliance will delay the
registration process and submittal of fraudulent or
forged information will be grounds for indefinite
suspension.
Q. SUPPLIER PERFORMANCE
SUPPLY CHAIN MANAGEMENT IS A KEY SUCCESS
FACTOR FOR SAUDI ARAMCO
Saudi Aramco established new team their full time job is
to Sustain high supplier performance and to enhance the
performance of low performing suppliers. Supplier
Performance Unit (SPU) is chartered to ensure a portfolio
of best in class suppliers to support Saudi Aramco
operations. Supplier performance evaluation can lead to
supplier development with the potential for reducing
costs, mitigating risks, driving continuous improvement,
and increased agility.
SPU has two specific goals aiming to have a portfolio of
reliable suppliers to support Saudi Aramcos operations
and projects:
Sustain high supplier performance: Supplier
Performance Unit (SPU) will monitor the suppliers
that perform well, to ensure that they continue to
excel. This will be achieved by helping the suppliers
to identify and overcome rising problems or
obstacles in a timely manner. SPU will also
implement a recognition and incentive program to
propagate high performing suppliers.

Performance enhancement of low performing


supplier: Supplier Performance Unit (SPU) in
collaboration with internal stake holders will closely
monitor low performers to identify root causes and
agreeing on corrective actions to bridge the gaps in
given time.
The supplier performance Unit envisages itself as
the entity primarily responsible for the performance
monitoring of Saudi Aramco Supplier base. The unit
focuses on the following specific set of roles and
responsibilities within Materials Supply:
Adapt industry best practices and technologies for
Suppliers performance monitoring.
Collaborate with internal stakeholders (buyers,
customers, Vendor Inspection, and Consulting
Services) to improve suppliers performance.
Evaluate, measure and monitor supplier
performance utilizing Supplier Scorecards(KPI).
Set protocols to inform the suppliers of their.
performance and maintain a positive reinforcement
environment to encourage optimum performance.
Coordinate and participate in process improvement
initiatives.
Develop and implement supplier incentive program.
Conduct counseling sessions and periodic meetings
with suppliers in coordination with other
stakeholders to encourage collaborative
performance management.
R. SAUDI ARAMCO SUPPLIER PORTAL
Saudi Aramco is progressively using e-Procurement as a
means to conduct transactions and real-time tracking of
key procurement information. The Supplier Portal is the
main electronic communication tool between Saudi

Aramco and its suppliers and serves to speed the flow


and improve the accuracy of key supply chain
information between stakeholders. All registered
Saudi Aramco Suppliers should maintain a high-speed
Internet connection to facilitate access to the Saudi
Aramco Supplier Portal and possess the capability to
provide and manage Web-based catalogs. All Portal
access requests should be forwarded to (03) 874
0320 or (03) 874 0841.
Technical questions dealing with expired passwords or
accessing the portal should be directed to:
supplier-portal@aramco.com or call 872-2222( IT
Help Desk).
Suppliers are responsible for notifying SRU of any
employees end of service case that have been granted
access to the Saudi Aramco Supplier Portal.
Saudi Aramco and our supply chain partners
understand that business dynamics are changing
globally and the allocation of adequate material
resources, employee development and robust
Information Technology infrastructures are key to
efficiently managing the complex supply chain.

CONCLUSION
In closing, we thank you for taking time to
read this guide and for your interest in joining
the Saudi Aramco Supply Chain team. We look
forward to working with you in the future to
build strong relationships and efficiently
manage our global supply chain. We look
forward to your questions and encourage
suggestions on improving our booklet

CONTACT INFORMATION
Country/ Company

Function

Area of Responsibility

Address & Phone/Fax Numbers

Saudi Arabia/
Saudi Aramco

Local Industrial
Development

Saudi Arabia

Local Industrial Development Unit


Saudi Aramco Box 77-X - North Park 1
Dhahran 31311, Kingdom of Saudi Arabia
Tel: +966-3-874-1664 General Line: +966-3-8740609
Fax: +966-3-874-0015
Email:LOCAL-CONTENT@ARAMCO.COM

Saudi Arabia/
Saudi Aramco

Supplier
Performance
Management

Saudi Arabia

Supplier Performance Unit


Saudi Aramco Box 77-X-North Park 1
Dhahran 31311, Kingdom of Saudi Arabia
Tel: +966-3-874-0061, Fax: +966-3-874-0015
Email:supplier-performance@aramco.com

Saudi Arabia/
Saudi Aramco

New Business
Development

Saudi Arabia

New Business Development


Fax: +966-3-874-1734
E-mail: NBD-L&C@aramco.com

Saudi Arabia/
Saudi Aramco

Manufacturers
Registration

Saudi Arabia,
other GCC countries,
and the Middle East,
Egypt, Kenya,
Somalia and Sudan

Supplier Registration Unit


Room A-119, Saudi Aramco Box 87 - North Park 1
Dhahran 31311, Kingdom of Saudi Arabia
Tel: +966-3-874-0321
General Line: +966-3-874-0958
Fax: +966-3-874-0015
Email:Manufacturer-registration@aramco.com
Manufacturers Online Registration:
http://ebusiness.aramco.com/

Saudi Arabia/
Saudi Aramco

Vendor
Registration

Saudi Arabia

Supplier Registration Unit


Room A-119, Saudi Aramco Box 87 - North Park 1
Dhahran 31311, Kingdom of Saudi Arabia
Tel: +966-3-874-0799_General Line:+966-3-874-0373
Fax: +966-3-874-0015/0335
Email:Vendor-registration@aramco.com
Vendor Online Registration: http://ebusiness.aramco.com

Saudi Arabia/
Saudi Aramco

Contractors
Registration

Saudi Arabia

Contractor Relations Counter (R-162) North Park 2,


Dhahran 31311
Tel:+ 966-3- 874-2287/2457
Fax:+966-3-874-2260
Electronic Contracting Network IK Registration:
http://esr.aramco.com
OOK Registration and general inquiries:
Contractor-registration@aramco.com

Country/ Company

Function

Area of Responsibility

Address & Phone/Fax Numbers

USA/Aramco
Services Company

Manufacturers
& Suppliers
Registration

The Americas
(Western Hemisphere)

Aramco Services Company (ASC)


MS 549, 9009 West Loop South, Houston
Texas 77096, USA
Tel: +1 (713) 432-5555, Fax: +1 (713) 432-4716
Strategic Sourcing
Email: stratsourcing@aramcoservices.com
Website: www.ascstrategicsourcing.com
Supplier Relations Group
Email: Beatrice.garza@aramcoservices.com

USA/Aramco
Services Company

Service
Contractors

North America

Aramco Services Company (ASC)


Tel: +1 (713) 432-4000
Email: contractorregistration@aramcoservices.com
Website: www.aramcoservices.com

Netherlands/Aramco
Overseas Company

Contractors
Registration

Europe and South Africa

Netherlands/Aramco
Overseas Company

Manufacturers
& Suppliers
Registration

All countries outside of


Saudi Arabia
& USA/Canada

Aramco Overseas Company B.V. (AOC)


The Hague Office
AOC Contracting Administration Unit
Scheveningseweg 62-66, 2517 KX
The Hague, The Netherlands
Tel:+31 (0) 88 262 2364
Fax: +31 (0) 88 262 3000
Email: AOCcontractorregistration@aramco.nl
www. Aramcooverseas.com

Japan/
Aramco Asia Japan

Manufacturers
& Suppliers
Registration

Japan, The Republic of


Korea, Taiwan &
Hong Kong, Malaysia,
Singapore, Indonesia,
Thailand, Vietnam,
Cambodia,
& The Philippines

Aramco Asia Japan, Tokyo Office


Marunouchi Building 26F
2-4-1 Marunouchi, Chiyoda-ku
Tokyo, 100-6326, JAPAN
T : +81 (0)3-6367-7801
F : +81 (0)3-3211-3544
Email: AOCT_Registration@aramco.com
Website: www.aramcooverseas.com

Aramco Overseas Company B.V. (AOC)


The Hague Office Strategic Sourcing
Scheveningseweg 62 - 66,2517 KX
The Hague, The Netherlands
Tel:+31 (0) 88 262-2000
Fax:+31(0) 88 262-3000
Email:aocsupplierrelations@aramco.nl
www.aramcooverseas.com

Country/ Company

Function

Area of Responsibility

Address & Phone/Fax Numbers

India/
Aramco Overseas
Company/
AOC India

Manufacturers
& Suppliers
Registration

India

Aramco Overseas Company B.V. (AOC),


India Branch Office
Unit 610, Level-6, Time Tower Building
MG Road, Gurgaon,-122002, Haryana., India
Tel: +91 (0) 1244983900, Fax: +91 (0)124 498 3909
Email: AOC-India_registration@aramco.nl
Website: www.aramcooverseas.com

China/
Aramco Asia China
(Aramco Far East
(Beijing) Business
Services Co., Ltd.
(ABS)

Manufacturers
& Suppliers
Registration

China

Aramco Far East (Beijing) Business Services Co., Ltd.


(ABS), Shanghai Branch
No. 16T60, 16F SWFC 100 Century Avenue,
Pudong New District, Shanghai 200120, PRC
Tel: +86 (0) 21-3866-5700, Fax: +86 (0) 21-68779080 Email: ABS-SH-Sourcing@aramcoasia.com

Hague
Aramco Overseas
Company B.V.
London
Tokyo
United States
Houston

Beijing
Aramco Services
Company

Jubail
Jiddah

Saudi Aramco
Headquarters
Dhahran
India

Aramco Asia
Company/AAJ

Aramco Asia
Company/AAK
Shanghai
Aramco Asia
Company/ABS

Al-Khafji
Yanbu

Korea

Aramco Overseas
Company B.V.

Philippines

IMPORTANT AND USEFUL LINKS


MEGA COMPANIES
Saudi Basic Industries Corporation, www.sabic.com
Saudi Electric Company, www.se.com.sa
Saline Water Conversion Corporation, www.swcc.gov.sa
Water Utility Company for Jubail and Yanbu, www.marafiq.com.sa
Saudi Arabian Oil Company (Saudi Aramco), www.saudiaramco.com
LAND ALLOCATION ENTITIES
Royal Commission for Jubail and Yanbu, www.rcjy.gov.sa
Saudi Industrial Property Authority (MODON), www.modon.gov.sa
Rabigh Conversion Industrial Park, www.rabighCIP.com
Dhahran Tecnno-Valley, dtv.kfupm.edu.sa (R&D Purposes)
FUNDING ENTITIES
Saudi Industrial Development Fund, www.sidf.gov.sa
Human Resourced Development Fund (HRDF), www.hrdf.org.sa
Public Investment Fund, (via), www.mof.gov.sa
GOVERNMENT AND SEMI-GOVERNMENT ENTITIES
Saudi Government Electronic Portal, www.saudi.gov.sa
Saudi Arabia General Investment Authority, www.sagia.gov.sa
Council of Saudi Chambers, www.saudichambers.org.sa
Ministry of Petroleum & Mineral Resources, www.mopm.gov.sa
Ministry of Finance, www.mof.gov.sa
Electricity and Cogeneration Regulatory Authority, www.ecra.gov.sa
Department of Zakat and Income Tax, www.dzit.gov.sa
Ministry of Commerce and Industry, www.commerce.gov.sa
Ministry of Labor, www.mol.gov.sa
General Organization for Social Insurance, www.gosi.gov.sa
Saudi Standards, Metrology and Quality Org, www.saso.org.sa
Saudi Trade & Export Development Company, www.tusdeer.com
Dammam Bonded & Re-export Zone, www.reexport.com
Saudi Ports Authority, www.ports.gov.sa
Saudi Customs, www.customs.gov.sa
VOCATIONAL, TECHNICAL AND EDUCATIONAL ENTITIES
General Organization for Technical Education and Vocational Training, www.tvtc.gov.sa
Jubail Industrial College, www.jic.edu.sa
Jubail Technical Institute, www.jti.edu.sa
Saudi Petroleum Services Polytechnic, www.spsp.edu.sa
College of Technology - Dammam, www.ctd.edu.saf

For question or suggestion regarding the booklet, please refer them to


Supplier Relationship Management Division/ Materials Supply.
E-mail: Supplier-Realtions@aramco.com,
Tel: +966 3 874 0337, Fax +966 3 874 0115
Address: Room A-119, North Park 1, Dhahran 31311, Saudi Arabia