SAUDIA Group launches “Nartaqi” Program to enhance local content

SAUDIA Group announced the launch of “Nartaqi” program, a strategic initiative aimed at promoting and enhancing local capabilities. The program was unveiled during the second edition of the Local Content Forum under the patronage of His Excellency the Minister of Transport and Logistic Services and Chairman of Saudi Arabian Airlines Corporation, Engr. Saleh Al-Jasser, along with His Excellency the Director General of SAUDIA Group Engr. Ibrahim Al-Omar, in direct coordination with the Local Content and Government Procurement Authority (LCGPA).

“Nartaqi” represents a pivotal part of the Group’s new strategy, aligning seamlessly with the objectives of Saudi Vision 2030 to foster a thriving national economy.

The subsidiaries of SAUDIA Group are working in unison to achieve the core objectives of “Nartaqi” program. These objectives focus on maintaining leadership in the aviation industry localization efforts, partnering with stakeholders to enhance the Kingdom’s aviation sector capabilities, and sustainably increasing the contribution of local content to the aviation sector through swift-execution initiatives. Additionally, the program aims to improve the internal and external perception of the Group and its suppliers’ local content footprint.

Dr. Ibraheem Sheerah, Chief Transformation Officer and Local Content Head at SAUDIA Group said: “SAUDIA Group has designed the holistic roadmap for “Nartaqi”. The program is structured into three phases: the design and construction phase, which focuses on securing essentials, updating processes and procedures, and developing initiatives; the implementation and development phase, which measures and maximizes impact; and the sustainability assurance phase, achieved through collaboration with partners”.

Through “Nartaqi” program, SAUDIA Group prioritizes local manufacturing of aviation parts and components, transforming raw materials into aircraft parts and localizing technical and logistical services. This effort spans the entire supply chain, including supplier network management, procurement, inventory, maintenance, engineering, ground services, airport services, logistics, transportation, shipping, and fleet management.

SAUDIA Group has embarked on implementing key foundational elements and supportive programs under “Nartaqi” program. This effort has resulted in a significant increase in its local content, rising from 19% in 2019 to approximately 29% today. As part of this progress, various processes have been updated to incorporate local content requirements more effectively.

Additionally, the Group has signed the largest deal in the Saudi aviation history for 105 aircraft with Airbus, which emphasizes localizing expertise and enhancing local content. This is expected to contribute 2.5 billion Saudi Riyals to local content, enabling SMEs to join Airbus’s supply chain.

By 2030, SAUDIA Group aims to increase local content in supply chains to 45%, contributing to the national economy and GDP. This involves creating more technical jobs and training personnel in aviation, shipping, and logistics.

The Group plans to empower local manufacturers and suppliers by increasing supply chain localization. This will include attracting global companies and establishing strategic partnerships to localize these industries within the Kingdom. SAUDIA  Technic aspires to become a regional hub for aviation maintenance, serving all regional airlines. Meanwhile, SAUDIA Academy is working towards achieving regional accreditation for its aviation training programs.