Saudi Electricity Company reveals $27bn expansion plan
Utility giant's rate of local purchases has grown to 68% in the last four years
Saudi Electricity Company expects the value of its projects, contracts, and purchases for the next five years to reach $26.6bn (SAR100bn). The company’s business analyst, Eng Muhannad al-Malki, added that the electric utility giant’s may offer investment opportunities worth $6.7bn (SAR25bn) in the same period.
At a workshop organised by the Chamber of Commerce and Industry in Tabuk, al-Malki revealed that Saudi Electricity Company currently serves around nine million customers, with Saudisation a key area of focus for the business, in line with the goals of Vision 2030. The firm has also launched localisation initiatives, including the development of policies and incentives for contractors and manufacturers, as well as programmes to support local factories, he added.
Saudi Electricity Company launched projects worth $1.5bn in 2017 – read more about them here.
Director of Saudi Electricity Company’s local content development department, Eng Rayyan bin Abdul Qadir Madah, said the firm’s long-term strategy involves localising industries and supporting homegrown factories and organisations. Al Madah said domestic manufacturers registered with Saudi Electricity Company have grown at a rate of 840% since 2001, adding that more than 571 such organisations are listed with the firm. This, in turn, has led to Saudi Electricity Company’s local purchases growing to 68% over the last four years, according to an Arabic-language SPA report.
Saudi Electricity Company was formed as a joint stock company in 2000 following a Council of Ministers Order that stipulated the merger of all Saudi electricity firms in the kingdom’s Central, Eastern, Western, and Southern Regions, plus 10 small firms operating north of the kingdom. Also included were the electricity operations managed by General Electricity Corporation. As a result, Saudi Electricity Company is the kingdom’s chief provider of electricity, and among its largest employers as well.
Saudisation is among the kingdom’s top priorities as enlisted within the Vision 2030 economic diversification mandate, which aims to create new sectors for employment and revenue growth in Saudi Arabia, the GCC’s largest economy.