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Saudi Electricity Company: Value of Local Content Contribution Exceeded $40 Billion

The Director of Local Content and the Benaa Program at the Saudi Electricity Company, Mahmoud Basurrah (Asharq Al-Awsat)
The Director of Local Content and the Benaa Program at the Saudi Electricity Company, Mahmoud Basurrah (Asharq Al-Awsat)
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Saudi Electricity Company: Value of Local Content Contribution Exceeded $40 Billion

The Director of Local Content and the Benaa Program at the Saudi Electricity Company, Mahmoud Basurrah (Asharq Al-Awsat)
The Director of Local Content and the Benaa Program at the Saudi Electricity Company, Mahmoud Basurrah (Asharq Al-Awsat)

Head of Local Content at the Saudi Electricity Company Mahmoud Basurrah announced on Thursday that local content exceeded SAR150 billion (around $40 billion) over the past five years.

Basurrah revealed the establishment of nine new factories, noting that the company has surpassed the targets set by the Public Investment Fund (PIF) for 2025. PIF holds a 74.3% stake in the Saudi Electricity Company, while Saudi Aramco owns 6.9%, with the remaining shares held by other investors.

Local content measures the percentage of goods and services produced domestically and used in projects, reducing dependency on imports.

In an interview with Asharq Al-Awsat during the Energy Localization Forum in Riyadh, Basurrah explained that local content strengthens reliance on national resources and labor, creating new job opportunities.

He highlighted the notable achievements of the Saudi Electricity Company in industry localization and enhancing local content, stating that local content has reached 63%, surpassing PIF’s target for next year of 60%. He added that the program has made rapid progress to meet sector growth, achieving various interim goals, including signing nine localization and procurement agreements worth over SAR6 billion ($1.6 billion), announced on Wednesday.

According to Basurrah, these agreements aim to establish nine factories for products, some of which will be manufactured in Saudi Arabia for the first time.

He further explained that the Benaa Program, established in 2019, aims to accelerate localization and strengthen local content within the Saudi Electricity Company, incorporating three main initiatives to encourage and support domestic manufacturing.

He told Asharq Al-Awsat that the first initiative focuses on “developing policies to support local manufacturers and contractors.” The second involves establishing mechanisms to incentivize small and medium-sized enterprises, while the third aims to attract investors in relevant fields, develop the workforce, and increase private sector contributions to the GDP, in line with Vision 2030.

In financial performance, the company doubled its quarterly profits in Q2 this year by 384.39% over Q1, when it earned SAR897 million. Year-on-year, profits rose by 8.16% to SAR4.34 billion in Q2 2024, compared to around SAR4.02 billion in the same quarter last year.

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Saudi-UAE Trade Exchange Reaches $244 Billion in 10 Years

The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
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Saudi-UAE Trade Exchange Reaches $244 Billion in 10 Years

The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)

The Saudi-Emirati Economic Forum, which kicked off at the Federation of Saudi Chambers headquarters in Riyadh on Sunday, highlighted significant growth in trade between Saudi Arabia and the United Arab Emirates, reaching SAR 915 billion ($244 billion) over the past decade (2014 to 2023). In the past three years alone, trade reached its highest levels, totaling SAR 327.5 billion ($87.3 billion).

Saudi Minister of Economy and Planning Faisal Al-Ibrahim noted that trade between Saudi Arabia and the UAE increased by 25% over the past five years, reaching SAR 113 billion ($30 billion) by the end of 2023, compared to SAR 90 billion ($24 billion) in 2019.

He added that both countries have seen significant transformations in investment due to policies and measures designed to develop and improve the investment environment.

Al-Ibrahim also highlighted that, as of the end of last year, the UAE recorded positive growth in foreign direct investment (FDI) in Saudi Arabia, totaling around SAR 111 billion ($29.6 billion), marking a 15% increase from 2022.

Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef emphasized that Saudi Arabia and the UAE have promising potential to enhance integration in industry and mining.

He expressed eagerness to collaborate on joint initiatives to support entrepreneurs by improving access to financing and training.

Al-Khorayef noted that Saudi exports to the UAE grew at an annual rate exceeding 9%, reaching about SAR 31 billion SAR this year.

UAE Minister of Economy Abdullah Al Marri revealed that UAE investments in Saudi Arabia have reached AED 15.7 billion, stressing that the forum provides a platform to continue strengthening the economic partnership between the two countries and advancing it to new levels.

He underlined the forum’s role in helping business communities explore promising growth opportunities in both countries. Al Marri underscored the private sector’s critical role as a key partner in helping both governments achieve their future vision, stressing that current global economic challenges underline the need to strengthen partnership channels.

He further highlighted that the UAE is Saudi Arabia’s largest Gulf and Arab trading partner and second-largest global partner, while the Kingdom is the UAE’s top Gulf and Arab trading partner and fourth globally.

Non-oil trade between the two nations reached AED 137 billion in 2023, with non-oil trade exchanges totaling AED 75 billion in the first half of this year, reflecting over 18% growth compared to the same period in 2023.

UAE investment inflows into Saudi markets grew by more than AED 15.7 billion in 2023, a 6% increase from 2022. Saudi cumulative investments in the UAE reached $6.5 billion by the end of 2022, making Saudi Arabia the fourth-largest investor in the UAE, according to Al Marri.

Chairman of the Saudi-Emirati Business Council Abdulhakim Al-Khaldi said the economic partnership with the UAE is strong and growing, encompassing trade and investment cooperation in most major sectors.

Vice President of the Federation of Saudi Chambers Fayez Al-Shuaili said the forum would support achieving shared goals, produce actionable recommendations, and foster a business-friendly environment to boost trade and investment growth.

Trade between the two countries reached around $30 billion last year, with further growth anticipated in trade and investment relations, he added.