Saudi Arabia’s General Investment Authority (SAGIA) has announced a joint venture agreement between Al Rushaid Group and France-based Optimum Tracker in the kingdom’s renewable energy sector.
The new legal entity will create a Saudi-registered company providing design and engineering services in solar energy, with a focus on manufacturing and mounting solar PV panels.
Beginning with a $53.3 million initial investment, the new JV will be based in Saudi Arabia’s Eastern Province and target a gradual capacity of no less than 150 megawatts (MW).
The plant constructed under the deal plans to export at least 30 percent of its products to countries across the region and create 1,000 direct jobs.
“Our country is undergoing a significant economic transformation and energy demand at home and abroad is growing rapidly, leading to the emergence of renewable energy as one of the most important strategic pillars in line with Saudi Vision 2030,” said SAGIA governor Ibrahim Al Omar.
Al Omar added that “renewable energy is seen as a vital enabler of sustainable growth in the kingdom and therefore provides exciting opportunities for both local and international investors, as we look to draw on the expertise and experiences of the private sector in transforming the industry”.
Sheikh Rasheed A. Al Rushaid, the vice chairman and president of Al Rushaid Group, said that the JV is an important step as it works towards localising an important component of solar plants in Saudi Arabia.
“We are confident that our experience and expertise in the Industrial field will assure a quick and seamless start of manufacturing and commercialisation of solar trackers, in order for these innovative products to be installed across the kingdom and exported worldwide,” he added.
According to Invest Saudi’s Fall 2019 Investment Highlights report, over 250 overseas businesses were granted investor licenses in Q3 – a 30 percent increase compared to the same time period in 2018.
In total, 809 foreign companies have established operations in Saudi Arabia, 67 percent of which are for fully foreign ownership investments.
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