DUSSUR and GE sign MoU for US$3 (SAR11.25) billion joint investments to expand localized manufacturing in Saudi Arabia
*Roll-out of over US$1 billion joint investments over the next year followed by potential investment of US$2 billion in energy, aviation, digital and other sectors from 2017
*Projects to contribute to transformation of Saudi economy through industrial diversification, value chain localization, strengthening private sector and SME investment and creating quality jobs for Saudi nationals
Jeddah, Saudi Arabia; May 23, 2016: DUSSUR and GE (NYSE: GE) have signed a Memorandum of Understanding (MoU) to co-invest in strategic sectors that will help develop and localize industrial value chains in Saudi Arabia to serve the domestic market and beyond.
Joint investments of US$1 billion (SAR3.75 billion), will be rolled out by 2017, in addition to an aggregate potential investment of US$2 billion (SAR7.5 billion) to drive projects in water, energy, aviation, digital and other sectors from 2017.
Complementing the goals of Saudi Vision 2030, the overarching aim of the agreement is to establish transformative projects that will promote industrial diversification, deepen manufacturing capabilities in the Kingdom, build industrial know-how and create quality jobs for Saudi nationals. This will be through joint ventures in advanced manufacturing facilities in the Kingdom as well as by developing emerging digital and other industrial technological capabilities in Saudi Arabia.
DUSSUR and GE will also co-develop wide-ranging digital industrial applications and solutions that aim to foster home-grown digital innovation. The software solutions will cover data visualization, big data management, and data analytics, among others.
H.E. Eng. Abdullatif Al-Othman, DUSSUR Chairman of the Board, said: “This agreement with GE to form joint ventures and co-invest in strategic, high-growth industrial and digital sectors, is at the core of DUSSUR’s mission and supports the Saudi Vision 2030 to strengthen the Kingdom’s economic diversification. DUSSUR’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. This strategic alliance with GE is an ideal fit to deliver on these goals, and together we will contribute to the long-term economic competitiveness and diversified growth of the Saudi economy.”
Jeffrey Immelt, Chairman & CEO of GE, said: “We are honored to be among the first companies to partner with DUSSUR in meeting its strategic development goals of Saudi Vision 2030. 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.”
A joint venture of Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and Saudi Arabia Basic Industries Corporation (SABIC), DUSSUR has the mandate to investing in and developing globally competitive industrial sectors in the Kingdom. It focuses on driving inward investments to the Kingdom through joint ventures and partnerships with global industry leaders.