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Plan Unveiled to Increase Local Content in Saudi Renewable Energy Industry Chains

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Plan Unveiled to Increase Local Content in Saudi Renewable Energy Industry Chains

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

The King Abdullah City for Atomic and Renewable Energy (KACARE) revealed on Saturday a plan to increase local content in the renewable energy industry chains in Saudi Arabia.

It said this comes as part of the initiatives it has been working on in line with the Kingdom’s Vision 2030, adding that work is ongoing to develop specifications that are compatible with the country’s climate features.

The Kingdom is working in accordance with its Vision 2030 and its National Transformation Program 2020 to build a sustainable renewable energy sector that includes industries and services, localization of technologies and qualification of human cadres, said President of KACARE Dr. Khalid bin Salih al-Sultan.

He stressed the need to find a balanced energy mix in the Kingdom that includes renewable energy sources, in order to achieve growth and prosperity and enhance energy security.

That includes solar energy paths, wind energy, geothermal energy and the conversion of waste into energy.

In December 2013, Saudi Arabia launched the “Renewable Resources Atlas,” which aims to help investors, researchers and developers alike.

It was launched as part of KACARE’s Monitoring and Mapping Program to support users, such as power project developers and financers, researchers, government organizations, industries, academics and the public.

Addressing the tenth session of the Assembly of the International Renewable Energy Agency (IRENA) held in Abu Dhabi on Saturday, Sultan said the Kingdom is among the leading and keen states to follow the needs of arid climatic regions and enable the entry of renewable energy to these areas.

“It has worked on several initiatives related to developing specifications that are compatible with the needs of countries with a similar climate to enable the expansion of renewable energy sources there,” he explained.

Sultan highlighted the United Arab Emirates’ efforts to host the IRENA and its activities. He also pointed to the Agency’s director general and staff’s efforts in achieving the goals of promoting the use of renewable energy around the world.

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Saudi Arabia Boosts Appeal as Foreign Investment Inflows Surge 44%

The Saudi capital, Riyadh (SPA) 
The Saudi capital, Riyadh (SPA) 
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Saudi Arabia Boosts Appeal as Foreign Investment Inflows Surge 44%

The Saudi capital, Riyadh (SPA) 
The Saudi capital, Riyadh (SPA) 

Saudi Arabia is advancing rapidly toward its Vision 2030 goals, recording a notable surge in foreign direct investment (FDI) during the first quarter of this year. Inflows rose 44% year-on-year to SAR 22.2 billion ($6 billion), up from SAR 15.5 billion ($4 billion) in the same period of 2024. The growth comes amid government efforts to attract investors and position the Kingdom as a global economic hub.

Attracting more FDI is central to Vision 2030, which seeks to diversify the economy beyond oil, stimulate private sector growth, and create jobs. Saudi Arabia aims to draw $100 billion in FDI by 2030, expand spending on “giga-projects,” and develop sectors including tourism, sports, and entertainment.

According to data from the General Authority for Statistics, total inbound FDI reached about SAR 24 billion ($6.4 billion) in the first quarter of 2025, marking a 24% increase compared to the same quarter in 2024. However, it dipped 6% from the previous quarter’s SAR 25.6 billion ($6.8 billion).

Outbound FDI dropped sharply, totaling SAR 1.8 billion ($480 million) in Q1 2025, a 54% decrease from SAR 3.9 billion ($1 billion) in the prior-year period. Compared to the previous quarter, outbound flows rose slightly by 7%.

Since 2021, Riyadh has required international companies seeking government contracts to establish regional headquarters in the Kingdom. Authorities have also pledged to modernize investment regulations to improve the business environment.

According to the Vision 2030 annual report, FDI as a share of GDP hit its 2023 target, with inflows reaching SAR 96 billion ($25.6 billion), up 50% from 2022 (excluding the exceptional Aramco transaction). However, the indicator declined by 1.31 percentage points between 2021 and 2023 due to weaker net inflows in 2021 and 2022 as global investors faced liquidity pressures from rising interest rates.

Despite this, data shows steady progress toward sustainable growth. FDI is becoming more diverse, spreading across industries and regions rather than concentrating solely in oil or the eastern provinces. This trend reflects greater investor confidence and supports efforts to attract long-term capital.

In 2023, Saudi Arabia adopted a new methodology for calculating FDI statistics in collaboration with the International Monetary Fund to improve data quality and transparency. As a result, historical figures were updated, with 2020 set as the reference baseline.