WOOD Group has been enlisted to help Saudi Arabia’s efforts to develop the country’s industrial capacity and skills base.

The Aberdeen-based engineering giant has agreed a Memorandum of Understanding with state-owned oil firm Saudi Aramco. It said this signalled continued commitment to creating and accelerating opportunities for local workforces in the Kingdom of Saudi Arabia.

The MOU will support efforts to strengthen and diversify the economy under the kingdom’s Vision 2030 plan.

Saudi Arabia wants to localise key manufacturing and service industries in a process that is expected to create thousands of new jobs for talented young locals.

While no work is expected to stem directly from the MOU, the agreement provides formal recognition for the part Wood has been playing in the capacity-building effort in the country.

Chief executive Robin Watson said it reflected Wood’s long term commitment to the region and trusted relationship with Saudi Aramco. “Our presence has grown rapidly, in large part due to our ongoing Saudization efforts,” he said.

Saudi Arabia provides attractive growth prospects for Wood Group amid the slowdown in the North Sea market triggered by the fall in crude prices since 2014.

Wood bought engineering combine Amec Foster Wheeler for £2.2bn in October in a deal that will help reduce its reliance on the North Sea oil services business.

Saudi Aramco signed a Memorandum of Understanding in support of localisation with US oil services group KBR in August.