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Aramco – National Training Centers (Saudi Arabia)

Context and Challenges 

Aramco and Saudi government entities formed a unique, innovative partnership to address the need for a pipeline of skilled labour by establishing 12 National Training Centers (NTC) across the Kingdom to build a robust and scalable skills development ecosystem.

The NTCs address skills gaps in key industries such as energy, technology, inspection, maintenance, marine, construction, tourism, and finance by offering apprenticeship, upskilling, and certification programs as well as workers seeking continuing education and career advancement. The program aligns with Aramco’s strategic objectives as well as the goals of Saudi Vision 2030 of localization, growing and diversifying the economy, and increasing employment in order to create a thriving economy


Approach and solution 

Launched in 2008, the NTCs utilized an innovative financing mechanism where government entities provide training facilities and subsidize a portion of tuition fees and stipends, while the private sector contribute to tuition fees. Aramco provide oversight to the centres, maintaining alignment of training programs with industry needs and program quality. Aramco also collaborate with international educational partners and accreditors to establish high training standards.

Aramco effectively tapped into government funding to build a sustainable pipeline of Saudi talent that is available to fuel economic growth of the Kingdom. The NTC funding model incentivizes companies to sponsor graduates by offsetting training costs while allowing graduates to be treated as employees from day one.

Aramco’s support goes beyond the role of a founding stakeholder and providing the financial supporter. It extends into a package of advisory, technical, and professional services that all NTCs benefit from. By overseeing NTCs operations, Aramco ensures there is always a high degree of synergy amongst them and continuously reviews their operations and the effectiveness of their offerings. Another important part of Saudi Aramco’s support to the NTCs is procurement and in-kind provision of a wide-range of modern training equipment, including large scale integrated simulators and training platforms, that allow for exhaustive practical training for large groups of trainees simultaneously.

The success of the NTCs depends on strong partnerships with employers across the Kingdom who directly sponsor students, provide mentorship, and employ graduates. Aramco engages with over 100 government and private stakeholders to co-develop curricula, ensuring that training aligns with real-world job requirements.

The NTCs’ innovative financing partnership has allowed the program to provide training for more than 70,000 Saudi men and women. This model opens enrolment to all eligible high school graduates, inclusive of students throughout the kingdom in urban and rural areas.


Critical Lessons Learned

There are critical lessons learned from engaging with government funding to deliver workforce development for Aramco and other industry partners. This includes:

  • The importance of aligning government objectives with private sector capabilities. 
  • The need for continuous engagement with stakeholders to adapt funding mechanisms to evolving labour market demands. 
  • The value of maintaining transparency and accountability to build trust and ensure long-term sustainability. 
  • Providing incentives such as subsidized wages, tax breaks, or reduced training costs encourages more employers to participate in hiring and training locals. 
  • Investments in training programs should focus on building sustainable talent pipelines rather than one-off projects.

Locations
Middle East & North Africa, Saudi Arabia
Sector
Oil & Gas
Year published
01 December 2024
Case Study Type
Innovative Funding Models