GE (NYSE:GE), Saudi’s SAIIC Ink $3-B Deal to support new Saudi Vision
The J-V agreement will help expand the Kingdom’s local manufacturing sector
The US industrial conglomerate General Electric (NYSE:GE) has signed a $3-B MOU (memorandum of understanding) with the Saudi Arabian Industrial Investments Company (SAIIC) to help develop the local manufacturing industry.
Under the agreement, joint investments of $1-B will be rolled out by Y 2017, while an aggregate potential investment of $2-B will be used to fund projects in water, energy, aviation, digital and other sectors from Y 2017.
SAIIC and General Electric will also co-develop digital industrial applications and solutions. The software solutions will cover data visualisation, big data management and data analytics, among others.
The agreement will help promote industrial diversification, deepen manufacturing capabilities in the kingdom, build industrial know-how and create quality jobs for Saudi nationals, GE said in a statement.
SAIIC chairman Abdullatif Al-Othman said: “This agreement with GE to form joint ventures and co-invest in strategic, high-growth industrial and digital sectors supports the Saudi Vision 2030 to strengthen the kingdom’s economic diversification.
“SAIIC’s mandate is to invest in and establish strategic industrial value chains in Saudi Arabia that promote the development of local manufacturing capabilities, quality jobs and attract new technologies and investments.”
SAIIC, a joint venture of Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and Saudi Arabia Basic Industries Corporation (SABIC), has the mandate to develop the Kingdom’s industrial sectors.
It focuses on driving inward investments to the country.
GE COB/CEO Jeffrey Immelt added: “We will work together to build manufacturing capabilities of GE in Saudi Arabia and develop more ‘Made in Saudi’ high-tech technology, creating a robust local supply chain.
“The agreement will also lead to strengthening the culture of digital innovation in the kingdom. The joint investment and collaboration will be a game changer for the Kingdom’s industrial and digital sectors.”
General Electric has a strong presence in Saudi Arabia. Last year, the company announced an investment of $100-M in its research and manufacturing programs in the Kingdom.
The amount was in addition to the $1-B that the company invested in the Saudi market over the previous 3 years.
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By Aarti Nagraj
Paul Ebeling, Editor