https://arab.news/8x246
JEDDAH: Steel towers for wind energy systems will soon be manufactured in Saudi Arabia following the signing of two agreements by the Kingdom’s Local Content and Government Procurement Authority.
The deals, made in partnership with Al-Yamamah Steel Industries Co. and Arabian International Co. for Steel Structures, aim to localize production and transfer critical knowledge in the wind energy sector.
The pacts were finalized during the Energy Localization Forum in Riyadh, where the Ministry of Energy and LCGPA oversaw the signing of 107 agreements and memorandums of understanding valued at SR104 billion ($27.69 billion).
This initiative is part of the Kingdom’s National Renewable Energy Program, which aligns with Vision 2030 and seeks to harness the country’s renewable energy potential. The program aims to diversify energy sources, stimulate economic growth, and ensure sustainable financial stability by fostering a robust renewable energy industry.
According to the LCGPA, the localization and knowledge transfer agreements will establish new industries in Saudi Arabia and create diverse job opportunities within the energy sector.
This effort is designed to enhance local content and increase reliance on domestic products and services, thereby boosting the Kingdom’s competitiveness in regional and global markets.
Abdulrahman bin Abdullah Al-Semari, CEO of the LCGPA, emphasized that the agreements will significantly localize the production of steel towers for wind energy systems.
He underlined that this initiative is expected to contribute approximately SR1.1 billion to the nation’s gross domestic product while strengthening local supply chains in the renewable energy sector. Additionally, localizing the wind tower industry is projected to create over 500 new jobs.
The LCGPA has recently signed an agreement to regionalize insulin product manufacturing and knowledge transfer in collaboration with the Public Investment Fund-owned National Unified Procurement Co. for Medicines, Medical Devices, and Supplies, or Nupco, along with strategic investors.
Al-Semari stated that this deal is part of a broader strategy to localize various industries and facilitate knowledge transfer, targeting six to seven insulin products with an estimated total value of approximately SR3.5 to SR4 billion.
As Saudi Arabia continues to pursue its Vision 2030 goals, these domestic initiatives in the renewable energy and healthcare sectors underscore the Kingdom’s commitment to building a diversified, sustainable economy that prioritizes local production and job creation.