SABIC’S SHIFT FROM FOREIGN ENGINEERING DEPENDENCY TO SELF-RELIANCE HIGHLIGHTED AT SAUDI COUNCIL OF ENGINEERS FORUM

The Saudi Basic Industries Corporation’s (SABIC) experience in localizing its engineering requirements was the subject of keen interest at a forum on “Localizing Engineering Experience in Development Projects” organized by the Saudi Council of Engineers in Riyadh on May 5.

Commenting on the SABIC experience, Mohamed Al-Mady, SABIC Vice Chairman and CEO, said that localizing engineering expertise was a strategic decision made by the Saudi government. “We can achieve this goal only by adopting new and innovative management concepts. Localizing engineering experience equips Saudi engineers with the vital skills needed to raise the performance standards of the various industrial sectors.”

From its early days, SABIC has recognized the importance of localizing engineering capability, Al-Mady said. “We encouraged Saudi engineers to work on important projects with major contractors at the engineering and design stage, particularly when they are deputed overseas. We also provided Saudi engineers all the required facilities and built their confidence with empowerment and trust. This went a long way in ensuring proficiency in key areas and building productivity levels. I am proud to say that the Saudization percentage at the Engineering & Project Management Department has now reached 71 percent.”

In his presentation at the forum, Khalid Al-Baz, General Manager, SABIC Project Services, said that SABIC relied on foreign expertise in the early days by establishing strategic partnerships with international petrochemical companies. They provided the technical and administrative support to establish SABIC affiliates. SABIC later relied on international companies to manage its mega projects. With time, the company encouraged Saudi engineers to engage closely with international experts till they developed the capabilities to take the lead in major engineering projects, both in the technical domain as well as in administrative fields.

Elaborating further on the SABIC experience, he said the company merged all its project departments at the different affiliates into one central department called, Engineering & Project Management. This step strengthened SABIC’s competency in managing mega projects and localizing its engineering requisites. Later, a specialized unit, the Knowledge Management Center, was set up within the department to constantly develop and hone local engineering skills.

SABIC has come a long way in its efforts to localize jobs in the company’s operational processes, reaching 84 percent at its facilities in Saudi Arabia. The company has taken up a national project to localize contractor jobs at its facilities in Jubail and Yanbu. The “SABIC National Program to Saudize 5000 Contractor Jobs” is supported by the government, represented by the Royal Commission for Jubail and Yanbu and the Ministry of Labor, through the Human Resources Development Fund. The project is expected to increase the percentage of Saudi contractor employees from 16 percent to 66 percent in various fields of specialization including technical, operational, engineering, administrative, and vocational.

Samir Al-Abdrabbuh
Vice President, Corporate Communications