RABIGH, 4 June 2007 — General Electric is set to play a major role in the development of Saudi Arabia’s economy through its technological advances in varied sectors such as oil and gas, energy, infrastructure support, health care and education.
John G. Rice, vice chairman of GE and president and CEO of GE Infrastructure, unveiled the company’s growth strategies for the Kingdom during the presentation held at King Abdullah Economic City, the single-largest private sector-led development in the region, here last week.
“A key market in the Middle East and Africa region for GE, Saudi Arabia, through effective public and private partnerships in high-growth areas, will be a pivotal country for the company’s growth strategies that are aimed at an annual average growth rate of 20 percent through 2010,” said Rice, adding that Saudi Arabia already generates over $1 billion to GE revenues from the region.
“GE’s existing effective portfolio of business synergies with the Kingdom led principally by petrochemical industry, are now focused on non-oil led growth,” Rice said, noting that “GE’s businesses power the oil, gas and energy sectors in Saudi Arabia and also contribute to such vital growth sectors as health care, aviation, water, process technologies, commercial and industrial construction.”
While addressing over 40 international and local media representatives who visited the project site here organized by GE as part of its “Build the Middle East” tour, Rice said “to streamline energy needs for the region, GE Energy plans to open power generation project offices in Riyadh and Dammam, which will serve as a hub to coordinate project management activities across the Middle East, where GE already has project commitments worth over $4 billion.”
GE’s gas turbine technology is already well established in the Kingdom with over 350 machines installed in key locations. GE Energy has signed an agreement valued at over $1 billion for a project located in Jubail Industrial City. GE has also entered into a second project agreement for the Riyadh Power Plant No.9 with Saudi Electricity Co. (SEC) and signed three contracts valued at over $950 million for the Qurayyah, Faras and Riyadh Power Plant No. 9 Extension projects.
Saudi Arabia is also a key market for GE C&I, where it manages specialist network of components and equipment distribution houses for industrial and commercial construction throughout the Kingdom.
“GE C&I is localizing products like uninterruptible power supply and electrical switch gear with key partners and evaluating further growth opportunities for lighting and motors,” Rice said.
He added: “In the oil and gas sector, GE continues its lead in delivering cutting-edge technology that enhances efficiency. Saudi Aramco has selected GE Oil & Gas to supply gas turbines to the southern area seawater capacity expansion project in Ghawar — the world’s largest oil field — and the Khurais oil field.”
Saudi Arabia is the largest market for health care in the region with as estimated population of over 27 million. “To meet the growing needs in the health care sector, GE has undertaken several proactive initiatives. GE Healthcare has invested several million dollars in three strategic service support centers in Riyadh, Jeddah and Dammam managed by over 150 local professionals,” he said, which “underscores our commitment to the Kingdom’s Saudization drive.”
GE Healthcare is also opening a manufacturing facility in Saudi Arabia, which will be focused on producing innovative diagnostic imaging systems to meet the growing demand for modern health care equipment regionally. GE Healthcare has also signed a Memorandum of Understanding (MOU) with the Saudi Arabian Ministry of Health to train more than 1,000 Saudi health care professionals annually.
As Saudi Arabia’s water needs rise amid growing population, GE’s technological know-how is once again tapped. “GE’s Water and Process Technologies has recently joined hands with Ali A. Tamimi Co. to set up specialty chemicals blending unit based in Dammam. GE has also agreed to a $20 million deal to supply mobile water treatment equipment to Al-Tamimi Group. The equipment will enable Al-Tamimi to quickly provide temporary or emergency water filtration equipment to municipal and industrial clients in Saudi Arabia and across the region,” Rice added.
Nabil A. Habayeb, GE’s president and CEO for the Middle East and Africa, told Arab News: “We are focused on building long-lasting partnerships with the public and private sectors through joint ventures and manufacturing facilities, and by providing focused training solutions in the company’s core competencies. This is a reiteration of GE’s localization initiatives to have a stronger component of Saudi work force by creating more employment opportunities and transfer knowledge and expertise to them.” With offices in Jeddah, Riyadh and Eastern Province, Saudi Arabia makes up the largest GE work force in the region with more than 600 employees.
