GE inks $15bn worth of deals with Saudi Arabian partners
GE has signed contracts and MoUs, valued at $15bn, with numerous government entities and companies in Saudi Arabia
GE has signed contracts and memoranda of understanding (MoUs), valued at $15bn (SAR56.25bn), with numerous government entities and companies in Saudi Arabia.
GE technologies and services account for almost $7bn (SAR26.25bn) of the total value of these partnership agreements.
The deals, which are intended to support the delivery of Saudi Vision 2030, were signed in the presence of King Salman bin Abdulaziz Al Saud, Custodian of the Two Holy Mosques; and US President Donald Trump.
Saudi Arabia’s Ministry of Energy, Industry and Mineral Resources (MEIM), Ministry of Health (MoH), National Industrial Cluster Development Program (NICDP), Small and Medium Enterprises Authority (SMEA), Saudi Aramco, Dussur, Ma’aden, King Faisal Medical City (KFMC), King Faisal Specialist Hospital (KFSH), Dr Sulaiman Al Habib Medical Group (HMG), and Saudi Telecom Company (STC) are among GE’s co-signees.
Commenting on the partnership agreements, John Rice, vice chairman of GE, and president and chief executive officer of GE Global Growth Organization, said: “The steps we have taken to grow our business globally, to embed a culture of innovation and collaboration both within GE and with our customers, would simply not be possible without these types of partnership.
“The access to different experiences, cultures, and capabilities has been the driving force behind GE’s growing global footprint. We view Saudi Vision 2030 as more than a national [initiative]; it is ours to deliver as well.
“We are part of the transformation process and proud to have been the first global company to show commitment to the vision in 2016. We have to remember that, with the global interconnectivity of industry, collaboration is no longer an advantage but a necessity, and ensuring mutually beneficial partnerships – as we have through these agreements – is a source of great pride for myself and GE.”
GE will join forces with MEIM, Saudi Aramco, Dussur, and Ma’aden to elevate power-generation capabilities in the kingdom. The partnership – which, ultimately, is expected to lay the groundwork investments and joint ventures worth more than of $12bn (SAR45bn) – is designed to provide a boost to the global industrial supply chain, and introduce improved productivity and efficiency savings through digital solutions in both the oil and gas and mining sectors.
Within the oil and gas sector, GE and Saudi Aramco have signed an MoU to undertake a digital transformation of the kingdom-based energy giant’s operations with the goal of generating $4bn (SAR15bn) in annual productivity improvements. This agreement will involve the establishment of a broader MoU pertaining to an oil and gas investment feasibility study, and an MoU relating to the development of oilfield services and equipment (OFSE) manufacturing hubs. Furthermore, the stakeholders have partnered to implement a competitive, reliable, and sustainable local supply chain, which will be known as the In-Kingdom Total Value Add (IKTVA) Program.
Focussing on the enhancement of local manufacturing capabilities at the GE Manufacturing and Technology Center (GEMTEC) in Dammam, GE also signed a joint venture with Dussur to enable the scaling up of the global industrial supply chain for the energy industry.
Meanwhile, GE and Ma’aden inked a partnership designed to facilitate the application of the former’s digital solutions within Saudi Arabia’s mining sector. Such services are expected to support Ma’aden in decreasing ore grades, reducing energy and fuel costs, improving equipment reliability and availability, minimising maintenance costs, and increasing overall productivity and efficiency.
GE also secured a selection of partnership agreements and contracts with Saudi Arabia’s MoH, KFSH, HMG, STC, KFMC, and NICDP through which it intends to provide expertise, equipment, and digital technologies that will ramp up the kingdom’s healthcare competencies.
Hisham Bahkali, GE’s president and CEO for Saudi Arabia and Bahrian, commented: “While the scale of projects and numbers announced today are truly remarkable, perhaps the greatest benefit will come from the impact on people.
“Saudi Vision 2030 is very clear: a strong and empowered local workforce is a must to realise the potential and long-term viability of the vision. These projects will not only create thousands of job opportunities in the kingdom, but will also see the training, development, and upskilling of thousands more Saudi men and women.
“The agreements we sign today are vital to the stimulation of the workforce, and we are thrilled to be part of them,” Bahkali added.