Dussur (formerly operating under the name Saudi Arabian Industrial Investments Company) and GE (NYSE: GE) have signed a joint venture agreement worth more than SR1 billion ($267 million). This announcement follows the summit held earlier this week between King Salman and US President Donald Trump and is part of the announcement GE made on May 20.
The agreement represents significant progress toward achieving the Saudi Vision 2030 by continuing to localize gas turbine manufacturing in Saudi Arabia and helping to further develop a global industrial supply chain for the energy sector. It follows a strategic memorandum of understanding signed between Dussur and GE last year that is expected to result in nearly SR3.75 billion of co-investment by the two companies across multiple sectors in 2017.
The joint venture will create the capacity to supply the majority of Saudi Arabia’s annual demand for gas turbines needed to satisfy the Kingdom’s growing electricity demands. This investment will create added economic value, contribute to the national economy, and boost the local supply chain to benefit Saudi small and medium enterprises (SMEs). Under this agreement, GE and Dussur will strengthen “Made in Saudi” capabilities by expanding manufacturing processes specifically around gas turbine component technology.
Abdullatif bin Ahmed Al-Othman, chairman of Dussur, said: “This landmark partnership between Dussur, a strategic industrial investments and development company, and GE, world renowned technology leader, underlines the commitment of Saudi Arabia to be a global player in the industrial sector in line with the goals of Saudi Vision 2030. This joint venture will contribute to stronger localized manufacturing ecosystems in Saudi Arabia. By creating a global supply chain we can unlock new growth opportunities that benefit the people of both nations.”
Paul McElhinney, president & CEO, GE’s Power Services, GE Power said: “The joint venture underscores GE’s firm commitment to the Kingdom’s Vision 2030, building on its key business growth priorities and emphasizing the growing importance of localization. The reciprocal investment between nations is a natural progression of a fundamentally strong partnership, taking the collaboration to new heights and allowing for the acceleration of key infrastructure projects and their subsequent impact on jobs, supply chains and overall economies.”