Saudi PIF strikes 3 deals to boost renewable energy component manufacturing in the the Kingdom

Saudi PIF strikes 3 deals to boost renewable energy component manufacturing in the the Kingdom
All three deals were announced on the same day. Supplied
Short Url
Updated 16 July 2024
Follow

Saudi PIF strikes 3 deals to boost renewable energy component manufacturing in the the Kingdom

Saudi PIF strikes 3 deals to boost renewable energy component manufacturing in the the Kingdom

RIYADH: Saudi Arabia’s Public Investment Fund has partnered with the world’s second-largest manufacturer of solar cell components for a $2.8 billion-power production plant in the Kingdom.

A statement from TCL Zhonghuan Renewable Energy Technology Co. confirmed the agreement, which is one of three signed off by the sovereign wealth fund on July 16 as it seeks to boost Saudi Arabia’s renewable energy sector.

The deals – entered into by the PIF subsidiary Renewable Energy Localization Co. – all involve creating joint ventures with Saudi firm Vision Industries.

One plan will see RELC working with Envision Energy to transform Saudi Arabia into a manufacturer of wind turbines and components.

The third deal involves an agreement with Jinko Solar to localize production of photovoltaic cells and modules.

Saudi Arabia has invested heavily in diversifying its energy mix toward renewable sources to meet its pledge to cut carbon emissions and promote sustainable development. By 2030, the country aims to source at least 50 percent of its electricity from renewables.  

Welcoming the deals, Yazeed Al-Humied, deputy governor and head of MENA Investments at PIF, said: “The new agreements are part of PIF’s efforts to localize advanced technologies in the renewable sector in Saudi Arabia and meet commitments to increase the share of local content, as well as contribute to localizing the production of 75 percent of the components in Saudi Arabia’s renewable projects by 2030 in line with the Ministry of Energy’s National Renewable Energy Program.

“These projects will also enable Saudi Arabia to become a global hub for export of renewable technologies. PIF aims to achieve these targets through its projects and portfolio companies, including RELC, which support PIF’s progress in renewable energy and investment, and enhance partnership with the private sector.” 

In a press release setting out more details of the deals, it was revealed that the agreement with TCL Zhonghuan Renewable Energy subsidiary Lumetech S.A. PTE. will localize production of solar photovoltaic ingots and wafers with the capacity to generate 20 gigawatts of power a year.

Under this agreement, RELC will hold 40 percent of the JV, with Lumetech holding 40 percent and Vision Industries having 20 percent.

The JV with Envision Energy will involve the manufacture and assembly of wind turbine components, including blades, with an estimated annual generation capacity of 4 GW. 

In this arrangement, RELC will once again hold 40 percent of the JV, with Envision holding 50 percent and Vision Industries holding 10 percent.

The agreement with Jinko Solar entails localizing the manufacture of photovoltaic cells and modules for high-efficiency solar generation. Under the agreement, which envisages annual production of 10 GW generation capacity, RELC will hold 40 percent of the JV, with Jinko Solar holding the same amount and Vision Industries accounting for the final 20 percent.

Overall, PIF, through Acwa Power and Badeel, is currently developing a total of eight renewable energy projects with a total capacity of 13.6 GW, involving over $9 billion of investment from the wealth fund and its partners. 

Saudi Arabia’s Minister of Energy, Prince Abdulaziz Al-Saud, recently launched the Geographic Survey Project for Renewable Energy, aimed at identifying optimal sites for solar and wind power initiatives across the Kingdom, marking it as an unprecedented endeavor.


Saudi Arabia aims for central role in global supply chains, says Alkhorayef

Saudi Arabia aims for central role in global supply chains, says Alkhorayef
Updated 19 sec ago
Follow

Saudi Arabia aims for central role in global supply chains, says Alkhorayef

Saudi Arabia aims for central role in global supply chains, says Alkhorayef

RIYADH: Saudi Arabia is a “great believer” in becoming a central player in the global supply chain across multiple sectors, according to a top official.

In an interview with Arab News during the Multilateral Industrial Policy Forum in Riyadh, Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized the Kingdom’s vast resources, competitive energy landscape, strategic location, financial and political stability, and advanced infrastructure.

“We are a great believer that Saudi Arabia is a great place to solve for so many challenges, especially with the supply chain. The combination of the resources that we have allows us to be a great place and hub for different capabilities,” Alkhorayef stated.

He added: “International players are engaged with us to understand how we can complement their offering and where we see their contribution in our industrial strategy journey.”

The minister also highlighted that the Kingdom has identified 800 key projects across sectors such as automotive, pharmaceuticals, and renewable energy, as part of its broader industrial strategy aimed at attracting significant foreign investment. This vision underscores Saudi Arabia’s commitment to becoming a global industrial hub, leveraging its energy resources, strategic location, and financial strength to foster both national and international partnerships.

“There’s so much opportunities we have, but in a nutshell, we have identified 800 projects in Saudi that are essential for our industrial strategy. Those range from automotive to pharmaceuticals to renewable to downstream chemicals and so on,” Alkhorayef noted.

He further explained that 12 specific subsectors have been defined, with the projects and investment technologies being developed indicating that Saudi Arabia will play an active role in the supply chain of each division.

Alkhorayef also elaborated on the Kingdom’s efforts to implement various policies and programs designed to support small and medium-sized enterprises and entrepreneurs as part of the country’s industrial transformation and green energy initiatives.

“We have a program called 1000 Mile. It takes an entrepreneur from an idea to an actual project. We also have the industrial hackathon, which incentivizes entrepreneurs to collaborate with large corporations to develop proofs of concept and solve problems,” the minister stated.

He added: “We also have a program to support small and medium enterprises and entrepreneurs entering the sector through the Industrial Support Program, which offers loans and grants to newcomers, especially those targeting specific areas of interest.”

Similarly, Omar Al-Suwaidi, undersecretary at the UAE’s Ministry of Industry and Advanced Technology, highlighted a comprehensive initiative that has assessed over 500 firms.

“We’ve had a comprehensive program, the program, in the last couple of years, assessed over 500 companies. These 500 companies, what they get out of it is a roadmap on how to do their transformation,” Al-Suwaidi told Arab News.

He continued: “They get incentives with a number of other partner banks for a reduced financing for their projects. These plans have resulted in these companies allocating almost 600 million dirhams in investment plans, which are going to be coupled now with the financing banks.”

Al-Suwaidi further elaborated on the growing significance of international partnerships, particularly in balancing national security and enhancing global supply chain resilience amidst geopolitical challenges.

“We have the initiative that we’ve started more than two years ago. It’s called the Industrial Alliance for Sustainable Economic Development, which we worked on with UAE, Egypt, Jordan, Bahrain and Morocco,” he said.

He concluded: “In the last two years, we’ve had 15 joint projects, joint agreements that are worth more than $3 billion.”


Saudi firms advance to Entrepreneurship World Cup finals in Riyadh

Saudi firms advance to Entrepreneurship World Cup finals in Riyadh
Updated 42 min 9 sec ago
Follow

Saudi firms advance to Entrepreneurship World Cup finals in Riyadh

Saudi firms advance to Entrepreneurship World Cup finals in Riyadh
  • The finalists represent a range of innovative ventures, highlighting the Kingdom’s entrepreneurial spirit
  • The Saudi companies advanced through national and regional qualifying rounds and now stand among 100 firms competing in the EWC finals

RIYADH: Six Saudi companies have secured spots in the finals of the Entrepreneurship World Cup, a competition organized by the General Authority for Small and Medium Enterprises, or Monsha’at. 

The finalists represent a range of innovative ventures, highlighting the Kingdom’s entrepreneurial spirit. Among them are Ammar Real Estate, a platform that offers technology-driven solutions for lease management, and AmplifAI, which focuses on diabetic foot care using artificial intelligence, the Saudi Press Agency reported. 

Another finalist, Ballurh, is a business intelligence platform that integrates with point-of-sale systems to generate actionable insights from various data sources. 

Other finalists include Fbni, a leader in eco-friendly construction materials; MisMar, which provides an app for car maintenance and repair services, and Moddakir, an educational platform that helps users develop customized learning plans for the Qur’an. 

The Saudi companies advanced through national and regional qualifying rounds and now stand among 100 firms competing in the EWC finals. Their innovative solutions span diverse sectors, positioning them to enhance local and global competitiveness. 

The EWC is hosted by Monsha’at in partnership with the Prince Mohammed bin Salman Foundation, or Misk, and the Global Entrepreneurship Network. 

The finals will take place during the Biban 24 Forum, held from Nov. 5— 9 at the Riyadh Exhibition and Convention Center, under the theme “A Global Destination for Opportunities.” 


Closing Bell: Saudi main index slips to close at 11,901

Closing Bell: Saudi main index slips to close at 11,901
Updated 18 min 11 sec ago
Follow

Closing Bell: Saudi main index slips to close at 11,901

Closing Bell: Saudi main index slips to close at 11,901
  • Parallel market Nomu lost 25.27 points, or 0.10%, to close at 26,379.91
  • MSCI Tadawul Index lost 5.85 points, or 0.39%, to close at 1,495.35

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, losing 55.22 points, or 0.46 percent, to close at 11,901.77. 

The total trading turnover of the benchmark index was SR4.68 billion ($1.24 billion), as 68 of the stocks advanced and 159 retreated.   

Similarly, the Kingdom’s parallel market Nomu lost 25.27 points, or 0.10 percent, to close at 26,379.91. This comes as 33 of the listed stocks advanced while 34 retreated.   

The MSCI Tadawul Index lost 5.85 points, or 0.39 percent, to close at 1,495.35.   

The best-performing stock of the day was Al-Baha Investment and Development Co., whose share price surged 3.45 percent to SR0.30.  

Other top performers were Umm Al-Qura Cement Co. as well as Saudi Pharmaceutical Industries and Medical Appliances Corp.

The worst performer was East Pipes Integrated Co. for Industry., whose share price dropped by 4.49 percent to SR157.40.   

Other fallers were Bupa Arabia for Cooperative Insurance Co. and Arabian Contracting Services Co.

On the announcements front, Bank Albilad has revealed its interim financial results for the period ending on Sept. 30.

According to a Tadawul statement, the firm recorded a net profit of SR2.016 billion in the first nine months of the year, reflecting a 14.4 percent surge compared to the same period in 2023.

The increase is mainly due to a rise in total operating income by 6 percent, which can be attributed to the growth in net income from investing and financing assets, other operating revenue, dividend income, and net fee and commission earnings. 

Bank Albilad’s shares ended the session at SR36, up 0.28 percent.

Banque Saudi Fransi has announced its interim financial results for the period ending on Sept. 30. According to a Tadawul statement, the firm recorded a net profit of SR3.427 billion in the first nine months of the year, reflecting an 0.942 percent surge compared to the same period in 2023.

This increase is mainly attributed to a decrease in total operating expenses by 2.8 percent while total operating income decreased by 0.7 percent.

This decline in total operating expenses was primarily due to lower impairment charges for expected credit losses on loans and advances, which was partially offset by salaries and employee-related expenses, other operating and general and administrative costs, impairment charges for other financial assets as well as depreciation and amortization.

The decrease in total operating earnings was driven by lower net special commission income, trading revenue, and exchange profits, which was partially offset by higher net fee and commission income and gains on non-trading investments.

Banque Saudi Fransi’s shares ended the session at SR31.30, down 1.12 percent.


AI’s growing influence on global Industries takes center stage at UNIDO MIPF 2024  

AI’s growing influence on global Industries takes center stage at UNIDO MIPF 2024  
Updated 16 min 5 sec ago
Follow

AI’s growing influence on global Industries takes center stage at UNIDO MIPF 2024  

AI’s growing influence on global Industries takes center stage at UNIDO MIPF 2024  
  • Russian Deputy Minister of Economic Development Alexey Gruzdev highlighted the remarkable speed of AI’s growth in the global market
  • Saudi official presented the Kingdom’s ambitious ‘Future Factories’ program to digitally transform 4,000 factories

RIYADH: The transformative impact of artificial intelligence on global industries was a key focus at the UN Industrial Development Organization’s event in Riyadh.

During this year’s Multilateral Industrial Policy Forum, discussions centered on how AI is reshaping various sectors and the global economy, with panelists sharing insights and strategies from their countries on navigating this rapidly changing landscape.

Russian Deputy Minister of Economic Development Alexey Gruzdev highlighted the remarkable speed of AI’s growth in the global market, noting that it ranks among the fastest across different sectors.

He elaborated on Russia’s strategic vision, presenting a comprehensive plan for AI development that extends to 2030.

“We made up the strategy for development of artificial intelligence in Russia until 2030,” Gruzdev stated, emphasizing the focus on scientific research, software development, data hardware improvement, and enhancing public awareness of AI technologies.

The plan also seeks to increase the availability of qualified personnel to meet the demands of the burgeoning Russian AI market.

In addition to the national strategy, Gruzdev mentioned the introduction of an AI code of ethics, which establishes general behavioral principles and standards to promote ethical AI use in the country.

Saudi Arabia’s Assistant Minister of Planning and Development Abdullah Al-Ahmari presented the Kingdom’s ambitious “Future Factories” program, aimed at digitally transforming 4,000 factories. He discussed how Saudi Arabia is leveraging AI to revolutionize industrial processes and strengthen its position as a leader in innovation.

Al-Ahmari explained that the initiative focuses on digitizing industrial processes through the integration of digital tools, positioning Saudi Arabia at the forefront of industrial innovation.

Concerns about AI’s impact on employment were also addressed. Siemens General Counsel Abdullah Al-Ajlan raised alarms about potential job displacement resulting from increased automation in industries. “One of the main concerns I’ve noticed in discussions around AI and digital transformation is employment and job displacement," Al-Ajlan noted.

He underscored the necessity of recognizing that certain sectors will continue to require human skills, even as automation and AI technologies evolve.

Al-Ajlan stressed that the success of AI integration relies not only on technological advancements but also on the establishment of legal frameworks: “It is important to touch upon the importance of clear laws and regulations policies that maintain the values of digitalization.”

As the panel concluded, it became clear that while AI presents vast opportunities, it also necessitates careful consideration of ethical standards, workforce impacts, and regulatory frameworks to ensure a balanced and progressive approach to its adoption.


Saudi energy forum secures $27.7bn in deals, launches ‘Nuwatin’ to accelerate localization

Saudi energy forum secures $27.7bn in deals, launches ‘Nuwatin’ to accelerate localization
Updated 23 October 2024
Follow

Saudi energy forum secures $27.7bn in deals, launches ‘Nuwatin’ to accelerate localization

Saudi energy forum secures $27.7bn in deals, launches ‘Nuwatin’ to accelerate localization
  • Deals represent a significant step in the Kingdom’s efforts to localize its energy sector and cover a range of industries
  • Nuwatin initiative already includes 63 suppliers and 59 energy components and is expected to increase the localization of energy products by up to 20% in some areas

RIYADH: The Energy Localization Forum in the Saudi capital Riyadh saw the signing of 124 agreements worth over $27.7 billion with 118 companies.

The deals represent a significant step in the Kingdom’s efforts to localize its energy sector and cover a range of industries, from oil and gas to renewable energy and petrochemicals. They also aim to foster long-term economic growth, reduce import dependency, and position the country as a global energy leader by achieving 75 percent localization by 2030.

The forum, which takes place from Oct. 23— 24, also highlighted the launch of the “Nuwatin” initiative, a localization enablement program designed to facilitate partnerships between suppliers, investors, and energy sector stakeholders. 

The initiative already includes 63 suppliers and 59 energy components and is expected to increase the localization of energy products by up to 20 percent in some areas. 

The program will act as a platform for public and private sectors to collaborate and overcome project development challenges, supporting Saudi Arabia’s broader efforts to localize critical aspects of its energy supply chain.

Saudi Aramco played a prominent role at the forum, securing 10 agreements under the “Drilling Equipment and Chemicals” initiative with global leaders such as Baker Hughes, Schlumberger, and Weatherford International. 

These deals are set to enhance the localization of key equipment and services within the oil and gas sector. Aramco also signed five deals focused on gas monitoring and control systems with companies like Honeywell and Emerson, reflecting the Kingdom’s commitment to strengthening its domestic energy infrastructure.

The Saudi Electricity Co., known as SEC, also made significant strides, signing two major deals with Siemens Energy and Hitachi Energy to localize high-voltage gas-insulated switchgears, a critical component of Saudi Arabia’s power grid. Additionally, SEC entered into seven agreements to advance the production of electrical components with companies such as Arabian Transformers Co. and Power Transmission & Telecommunication.

In his keynote address, Saudi Minister of Energy Prince Abdulaziz bin Salman highlighted the Kingdom’s unwavering focus on building a fully localized energy supply chain. “We should not be content with just local content but go deeper into materials, components, and minerals,” he said, advocating for a comprehensive approach that spans the entire supply chain — from raw materials to finished products. 

The minister added that achieving this goal requires coordinated efforts across sectors, dismissing the idea of siloed strategies. “No matter what you do in silos, you’re not going to achieve anything,” he said. 

He reiterated the importance of working cohesively to realize the Kingdom’s localization goals, adding that Saudi Arabia’s energy sector is supported by a broader ecosystem designed to empower companies like Aramco, SABIC, and SEC to achieve ambitious targets.

The forum also showcased the Kingdom’s growing focus on renewable energy. An agreement was announced to localize the manufacturing of wind towers for the country’s wind turbine energy system. The deal, made with Al Yamama and AIC Steel, represents Saudi Arabia’s increasing commitment to renewable energy as part of its sustainability efforts.

Another major development was the launch of the GCC Lab Co. for Technical Services, a collaboration involving key players like SABIC, the Nusaned program, and SNB Capital. This new entity will provide technical services to further support the localization of advanced energy technologies.

These efforts are part of Saudi Arabia’s broader strategy to create a sustainable, self-reliant energy ecosystem. As Prince Abdulaziz highlighted, the Kingdom’s localization goals are deeply tied to its ambition to lead the global energy market while ensuring security and resilience for decades to come.