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Saudi Electricity Company: Plans to Enhance Investment Opportunities

Saudi Electricity Company logo
Saudi Electricity Company logo
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Saudi Electricity Company: Plans to Enhance Investment Opportunities

Saudi Electricity Company logo
Saudi Electricity Company logo

In the last few years, in order to achieve the goals and aspirations of Vision 2030, Saudi Electricity Company (SEC) has been implementing a number of plans and projects for the localization of the electric power industries, which aims to transform Saudi Arabia into a promising regional center in this vital area.

This has contributed to an increase in the number of national companies and factories involved in the implementation of electrical projects and an increase in local industries used in the company's projects, compared to international materials and industries, in line with the National Transition Program 2020 (NTP 2020) to support the economy of the country.

Saudi Electricity Company is implementing a number of initiatives and investment opportunities in the electricity sector, rehabilitating local manufacturers and suppliers, as well as attracting foreign companies and factories to transform the Kingdom into a regional center for electrical industry in the Middle East and North Africa .

In further details Asharq Al-Awsat attained, SEC explained that it has a long-term strategy to support local content, factories and national companies and over the past years, it had taken important steps to support this trend.

With regard to the investment opportunities that can be offered by the company to local manufacturers, SEC revealed that it has prepared a booklet containing 100 investment opportunities to manufacture the materials needed. It confirmed that it is one of the first companies in the Kingdom and one with highest national procurement, up to 70 percent.

The Company explained that it developed direct communication channels with national manufacturers to exchange ideas and visions, discuss obstacles and problems that may impede the achievement of these strategic plans and determine the best practical solutions for them through holding specialized forums and periodic meetings with manufacturers and contractors.

It will also provide needed information for economic feasibility study of the materials that the company wishes to provide locally, in addition to publishing online the five-year plan for the company's needs of materials and spare parts, as well as technical specifications of the materials.

In the same context, SEC stressed that it is not possible to proceed with the implementation of its plans to settle the electrical industries in the Kingdom without the participation of national expertise and competencies, stressing that it is working on the implementation of a future strategy to increase employment opportunities for nationals in the field of electrical industries in the Kingdom.

Due to local experiences and capabilities, the Company was able to reach a number of achievements at the local and regional levels, with the Saudization rate reaching 91.1 percent. It indicated that its experience in the electric power industry and its vision for this vital sector is a pioneering experience.

SEC pointed out that Saudi engineers and technicians who lead the operation and management of electrical facilities and stations, proved that the people of this country are able to compete globally in all fields, especially since over 20,000 trained personnel graduated from various training institutes affiliated with it.

"The company's institutes have contributed over 30 years in developing the capabilities of thousands of young Saudis to work inside and outside the company and provide the various activities of the company with their needs," added SEC.

It asserted that employees and trainees’ assessments is done in accordance with the latest specialized programs.

The company succeeded in reducing the length of delivery of electricity to new subscribers to 28 working days, and delivering its services to about half a million subscribers in more than 13.1 thousand cities, villages, and residential communities in all regions of the Kingdom. The total number of subscribers in April 2018 reached more than 9.2 million, while the capacity of the power plants reached more than 54 GW.

The power plants’ efficiency reached 40 percent, which is the level planned to be reached in 2020, which is in line with the company's strategy in adopting technologies to reduce fuel consumption within the Vision 2030.

Saudi Electricity has also made a leap in its consumer services and e-services sector to facilitate all transactions for subscribers through digital channels. Recently, it transformed to electronic bill for all subscribers instead of the paper bill and will issue more than nine million electronic invoices in one day, which is 28 of each month.

In addition, the company started implementing solar projects in a number of power plants, such as Waad al-Shamal Power Plant. It also established several projects such as Saudi Electricity Company for the Development of Projects, and Dawiyat Telecom Company was licensed to use telecommunications services.

In 2017, Saudi Electricity Company ranked 14th worldwide among international power companies, according to Statista, an online statistics, market research and business intelligence portal.

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Business

US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
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US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)

The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said Thursday, leaving its previous estimate unchanged.
The Commerce Department reported that the nation's gross domestic product — the nation's total output of goods and services — picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year, The Associated Press reported.
Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate the government had previously estimated. Business investment was also solid: It increased at a vigorous 8.3% annual pace last quarter, led by a 9.8% rise in investment in equipment.
The final GDP estimate for the April-June quarter included figures showing that inflation continues to ease, to just above the Federal Reserve’s 2% target. The central bank’s favored inflation gauge — the personal consumption expenditures index, or PCE — rose at a 2.5% annual rate last quarter, down from 3% in the first quarter of the year. Excluding volatile food and energy prices, so-called core PCE inflation grew at a 2.8% pace, down from 3.7% from January through March.
The US economy, the world's biggest, displayed remarkable resilience in the face of the 11 interest rate hikes the Fed carried out in 2022 and 2023 to fight the worst bout of inflation in four decades. Since peaking at 9.1% in mid-2022, annual inflation as measured by the consumer price index has tumbled to 2.5%.
Despite the surge in borrowing rates, the economy kept growing and employers kept hiring. Still, the job market has shown signs of weakness in recent months. From June through August, America's employers added an average of just 116,000 jobs a month, the lowest three-month average since mid-2020, when the COVID pandemic had paralyzed the economy. The unemployment rate has ticked up from a half-century low 3.4% last year to 4.2%, still relatively low.
Last week, responding to the steady drop in inflation and growing evidence of a more sluggish job market, the Fed cut its benchmark interest rate by an unusually large half-point. The rate cut, the Fed’s first in more than four years, reflected its new focus on shoring up the job market now that inflation has largely been tamed.
Some other barometers of the economy still look healthy. Americans last month increased their spending at retailers, for example, suggesting that consumers are still able and willing to spend more despite the cumulative impact of three years of excess inflation and high borrowing rates. The nation’s industrial production rebounded. The pace of single-family-home construction rose sharply from the pace a year earlier.
And this month, consumer sentiment rose for a third straight month, according to preliminary figures from the University of Michigan. The brighter outlook was driven by “more favorable prices as perceived by consumers” for cars, appliances, furniture and other long-lasting goods.
A category within GDP that measures the economy’s underlying strength rose at a healthy 2.7% annual rate, though that was down from 2.9% in the first quarter. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.
Though the Fed now believes inflation is largely defeated, many Americans remain upset with still-high prices for groceries, gas, rent and other necessities. Former President Donald Trump blames the Biden-Harris administration for sparking an inflationary surge. Vice President Kamala Harris, in turn, has charged that Trump’s promise to slap tariffs on all imports would raise prices for consumers even further.
On Thursday, the Commerce Department also issued revisions to previous GDP estimates. From 2018 through 2023, growth was mostly higher — an average annual rate of 2.3%, up from a previously reported 2.1% — largely because of upward revisions to consumer spending. The revisions showed that GDP grew 2.9% last year, up from the 2.5% previously reported.
Thursday’s report was the government’s third and final estimate of GDP growth for the April-June quarter. It will release its initial estimate of July-September GDP growth on Oct. 30.