Supplier Development Program
The Fund’s Supplier Development Program aims to establish long-term strategic partnerships between PIF portfolio companies and their suppliers, with the ultimate goal of further building supplier capabilities.
Overview
Through the Supplier Development Program, a Portfolio Company would commit to implementing targeted measures in support of its suppliers. The Program covers several broad support areas, including over 40 targeted measures which can be broken down into tools and services, spanning demand transparency, supplier capability and capacity enhancement, as well as general enablers.
Ultimately, the program is a key enabler that will directly support local suppliers and further contribute to Saudi Arabia’s broader local content agenda. The Supplier Development Program aims to achieve its economic and business competitiveness targets.
Economic development outcomes
Outcomes through enabling the delivery of development goals and VRP targets by:
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Creating investment opportunities for the private sector, promoting and expanding local supply chains.
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Growing supplier ecosystems beyond anchors, both large and medium suppliers.
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Contributing to increasing portfolio companies’ local content contribution.
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Growing the direct and indirect supplier ecosystems.
Business competitiveness outcomes
Outcomes through supporting portfolio companies in achieving their business objectives by:
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Driving domestic competitiveness through enhancing local supplier capability, quality, and cost-competitiveness.
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Driving sophistication and diversification by upgrading suppliers’ operations and fostering more complex value chains.
SDP Initiatives Directory
Suppliers are encouraged to apply to PIF portfolio companies’ Supplier Development Programs and commit to meet program requirements with the ultimate aim of improving their performance and competitiveness to successfully graduate from their Program. Several PIF portfolio companies have ongoing Supplier Development Programs, such as STC and Ma’aden.
For more information about PIF’s partners and Saudi Arabia’s government authorities’ initiatives for private sector suppliers, refer to the following document.
