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Saudi Ministry of Energy: Localization of Products Reached 60%

Officials signing deal on sidelines of Saudi Electricity Forum (Asharq Al-Awsat)
Officials signing deal on sidelines of Saudi Electricity Forum (Asharq Al-Awsat)
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Saudi Ministry of Energy: Localization of Products Reached 60%

Officials signing deal on sidelines of Saudi Electricity Forum (Asharq Al-Awsat)
Officials signing deal on sidelines of Saudi Electricity Forum (Asharq Al-Awsat)

Localization of products associated with the industry of electricity reached 60 per cent and prices of domestic energy are very close to current global levels, according to an official at the Ministry of Energy, Industry and Mineral Resources in Saudi Arabia.

Deputy Minister of Energy, Industry and Mineral Resources and Chairman of the Board of Directors of Saudi Electricity Company (SEC) Saleh al-Awaji stated the past years witnessed the localization of heavy industries in cooperation with the entities related to the energy sector.

He pointed out that there are factories specialized in assembling gas turbines of capacity exceeding 300 megawatts.

During a press conference on the sidelines of the announcement of the meeting of Saudi Electricity Forum scheduled for October 10 to 12, Awaji confirmed that high-tension sectors will be localized in Saudi Arabia. He added that the process of localizing industries related to electricity will continue until needs of local markets have been met, noting that increasing energy efficiency will be reflected on the prices.

During the Forum, achievements of Custodian of the Two Holy Mosques program which was launched a year ago, will be presented, stated Awaji. He said that the Forum will see a number of investment opportunities related to renewable energy and the settlement of services.

The Deputy said that renewable energy is a primary and important source for electricity and will help enhance electric energy. 

"Reconstructing sector of electricity is developing properly, and within a year, the general features of the structure of it will be completed," Awaji said.

He pointed that some developments came up which required a revision of the structure with an inclination towards privatization of the electricity sector.

The Deputy explained that the forum will discuss challenges facing the sector and propose the appropriate solutions within the framework of Vision 2030. It will also review incentives and appropriate legislation aiming to introduce additional revenues to the national economy.

Awaji stressed that the ministry is concerned with encouraging and enhancing the localization of the electrical industries supporting these sectors, especially with industries related to the equipment, materials, electrical spare parts used in generating, transmitting, and distributing electric power. 

The forum and its associated Exhibition provide great opportunities for the local and international companies to directly market their innovative technologies and expertise to decision-makers, participants, and visitors. Also, they present a good chance to conduct meetings with companies, businessmen, and officials during the event.

International and local specialists will attend and give speeches in this Forum which represents an opportunity for senior officials, experts and investors to exchange experiences and enrich knowledge in the field of electricity, in addition to identifying investment opportunities in the Saudi market within the framework of Kingdom of Saudi Arabia’s Vision 2030.

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Business

Microsoft Arabia: Saudi Arabia Accelerates AI Adoption, Turns It Into Competitive Edge

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
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Microsoft Arabia: Saudi Arabia Accelerates AI Adoption, Turns It Into Competitive Edge

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson

Saudi Arabia has cemented its global standing in artificial intelligence after pouring significant investments into the sector in 2025, accelerating digital transformation and expanding real-world applications across government and the wider economy.

From education and manufacturing to energy and public services, AI is being deployed to advance the diversification goals of Saudi Vision 2030.

Turki Badhris, president of Microsoft Arabia, said the kingdom is experiencing unprecedented momentum in adopting AI as a strategic lever to raise competitiveness and improve performance across vital sectors.

Artificial intelligence has become central to the national transformation journey, he told Asharq Al-Awsat.

Linking transformation

Saudi Arabia’s overhaul spans digital government modernization, the construction of megacities and large-scale projects, industrial development, and the creation of new economic sectors, Badhris said.

AI, he added, is the connective tissue binding these efforts together by enabling smarter infrastructure and more efficient public services.

In 2025, Microsoft expanded cooperation with government and regulatory bodies, as well as major companies, to accelerate the adoption of AI and cloud computing across education, industry, financial services, and government operations.

Turning point year

Badhris described 2025 as a watershed for AI in the kingdom, marked by a shift to broad, sector-wide deployment.

In digital government, training programs implemented with the Digital Government Authority aim to equip more than 100,000 public sector employees with cloud and AI skills, enhancing service delivery and user experience.

In education, AI literacy initiatives have been scaled up in partnership with the Ministry of Education and the Ministry of Communications and Information Technology, alongside the rollout of generative AI tools and digital learning technologies in schools.

Manufacturers have adopted AI-driven predictive maintenance and real-time operational data analysis, cutting downtime and improving efficiency and reliability.

In energy and sustainability, AI solutions are being used to optimize water and energy asset management, including predictive maintenance and intelligent process control, delivering operational savings while supporting emissions reduction and sustainability targets.

Sovereign cloud push

Badhris said the launch of Microsoft’s cloud region in Saudi Arabia, planned for 2026, will mark a qualitative leap by allowing government entities and regulated sectors to run critical workloads in a secure local environment, ensuring data sovereignty and enabling low-latency innovation.

He added that regulatory frameworks developed by relevant authorities have bolstered trust in AI adoption by balancing individual protection with incentives for innovation.

From tools to partners

Looking ahead, Badhris said 2026 will see AI evolve from support tools into “work partners” capable of collaboration and initiative in complex tasks.

The shift will be felt across government services, industry, megaprojects such as Qiddiya and The Red Sea Project, and healthcare.

Advanced AI systems, he said, will sharpen operational efficiency, lift productivity, and enhance service quality, while moving from reactive oversight to proactive governance frameworks that ensure safe and responsible use.

Saudi Arabia, Badhris said, is not simply adopting AI but helping shape its future, investing in sovereign infrastructure, building national capabilities, and embedding responsible-use principles to drive sustainable economic growth and entrench its position as a global technology power.

Business

Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
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Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s push to localize half of its defense spending under Vision 2030 is drawing deeper commitments from US defense giant Lockheed Martin, which says it will expand local manufacturing, transfer advanced technologies, and further integrate the Kingdom into its global aerospace and defense supply chains.

Building Saudi partnerships

Steve Sheehy, vice president for international business development at Lockheed Martin’s aeronautics division, said the company is stepping up efforts to partner with both established and emerging Saudi aerospace firms.

Lockheed Martin is looking to build partnerships across maintenance, repair and overhaul, as well as component manufacturing and repair, particularly in advanced avionics, Sheehy told Asharq Al-Awsat.

Speaking after the company’s participation in the World Defense Show in Riyadh, he said Lockheed Martin is also targeting emerging fields such as additive manufacturing, from plastics to metals, and advanced composite materials.

The goal, he said, is twofold: plug gaps in the company’s global supply chain while transferring know-how and strengthening local capabilities in a mutually beneficial model.

Sheehy described the Saudi aerospace sector as established and growing. He also noted that it has a solid base in maintenance and manufacturing, as well as a clear shift toward advanced technologies, creating room for deeper collaboration between national firms and global industry leaders.

Alignment with Vision 2030

Retired Brigadier General Joseph Rank, chief executive of Lockheed Martin in Saudi Arabia and Africa, said the company’s strategy in the Kingdom is rooted in a long-term partnership aligned with Vision 2030, especially the target of localizing 50 percent of defense spending.

Lockheed Martin, he said, is focused on transferring knowledge and advanced technologies, developing local industrial capabilities and building an integrated defense ecosystem that positions Saudi Arabia firmly within global supply chains.

Rank said the company is working closely with government entities and national companies to strengthen local manufacturing, empower Saudi talent and establish a sustainable industrial base that supports innovation and creates high-quality jobs.

Lockheed Martin is advancing manufacturing and repair work on defense equipment, including components of the THAAD air defense system, missile launch platforms, and interceptor missile canisters, in cooperation with Saudi partners, Rank said.

The company has also opened a maintenance center in Riyadh for the Sniper Advanced Targeting Pod system, the first of its kind in the Middle East, to enhance maintenance and technical support capabilities.

Beyond hardware, Lockheed Martin is investing in transferring and localizing advanced technologies in air defense, command and control, and digital manufacturing. It is also supporting science, technology, engineering and mathematics programs and hands-on training in cooperation with national universities.

Broad local network

Rank said the company relies on a wide network of partners in the Kingdom. At the forefront are the General Authority for Military Industries, the main government partner in localization agreements, and Saudi Arabian Military Industries, a key manufacturing and technology transfer partner.

Other collaborators include the Advanced Electronics Company for advanced systems maintenance, the Middle East Propulsion Company and AIC Steel for producing THAAD components and platforms, and the National Company for Mechanical Systems for advanced manufacturing technologies.

Academic partnerships extend to King Abdullah University of Science and Technology, King Saud University, King Fahd University of Petroleum and Minerals, and Princess Nourah bint Abdulrahman University, supporting research and developing national talent.

Localizing aerospace manufacturing

Rank said localizing aerospace manufacturing is a strategic priority. Lockheed Martin has launched projects to produce interceptor missile launch platforms and canisters inside the Kingdom and awarded contracts for key components to Saudi companies, qualifying them to join its global supply network beyond the US.

The company is evaluating and qualifying hundreds of Saudi firms to produce defense equipment to international standards, focusing on technology transfer and building local expertise as a step toward manufacturing more integrated systems in the future.

Company officials said the approach goes beyond supplying systems. It centers on technology transfer, digital manufacturing, and command-and-control systems, laying the groundwork for the production of integrated systems in the Kingdom and strengthening Saudi Arabia’s position as a regional hub for aerospace and defense.

Business

Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
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Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)

Türkiye Petrolleri (TPAO) has signed a partnership agreement with Shell to carry out exploration work in Bulgaria's maritime zone, the Turkish energy ministry and British oil major said on Wednesday.

European Union member Bulgaria, which had been totally dependent on Russian gas until 2022, has been seeking to diversify its gas supplies and find cheaper sources, Reuters reported.

TPAO and Shell will jointly explore the Khan Tervel block, located near Türkiye's Sakarya gas field, and will hold a five-year licence in Bulgaria's exclusive economic zone, Minister Alparslan Bayraktar said.

Shell will continue as operator of the block, while TPAO will take a 33% interest in the licence, a Shell spokesperson said.

Since the start of this year, TPAO has signed energy cooperation agreements with ExxonMobil, Chevron and BP for possible exploration work in the Black Sea and the Mediterranean.

In April, Shell signed a contract with Bulgaria's government to allow the oil major to explore 4,000 square metres in the block.