Major agreements signed to boost Saudi Arabia’s energy sector localization and innovation in line with Vision 2030

Riyadh hosted the second day of the Energy Localization Forum, where several significant deals were inked to further Saudi Arabia’s ambitious energy sector localization goals. Among the headline announcements, Saudi Basic Industries Corp. (SABIC) and the Kingdom’s Small and Medium Enterprise Bank marked a key partnership under the Nusaned program, aimed at supporting small and medium-sized enterprises (SMEs) in the country.

SABIC also signed six memorandums of understanding (MoUs), including a notable agreement with Al Masafi for the construction of a nitric acid plant in the King Salman Energy Park. The plant will have a production capacity of 200 kilotonnes per annum, playing a crucial role in the nation’s industrial output. Another MoU was signed with Arabian Renewable for Environmental Services, focusing on transforming waste tyres into valuable products—an effort that aligns with the Kingdom’s broader environmental sustainability goals.

In the oil and gas sector, Baker Hughes signed seven strategic agreements with private sector partners. Among these, a deal with Metall-Treat Industries will provide local coating and machining services, while another with Azad Engineering will develop high-precision machined components, crucial to the sector’s operational excellence.

Saudi Electricity Co. (SEC) was also active at the forum, sealing three key deals, including a purchase agreement for fuel additives with Farabi Petrochemicals Group. SEC further collaborated with REDA Hazard Control to enhance safety equipment for energy operations and inked additional agreements for “operation and maintenance” services with local firms such as Bilfinger and Doosan.

Siemens Energy added to the event’s innovative focus by announcing a partnership with National Innovation Industrial Co. (NAMI) to advance 3D printing applications for gas turbine components. This collaboration highlights the growing role of technological innovation in bolstering the Kingdom’s energy infrastructure.

The agreements at the forum reinforce Saudi Arabia’s strategic push towards achieving 75 per cent localization across its energy sector by 2030. This key element of the Vision 2030 plan seeks to reduce the Kingdom’s dependence on imports and strengthen its national capabilities.

In his keynote address, Mazin Al-Bahkali, CEO of Saudi Power Procurement Co., emphasised the transformational impact of energy localization. “This is not just a vision, it is a reality,” Al-Bahkali remarked, underscoring the increased local production of gas turbines and solar panels as a sign of progress towards the Kingdom’s 75 per cent localization target.

These sentiments were echoed by Sultan bin Khalid Al-Saud, CEO of the Saudi Industrial Development Fund, who highlighted the necessity of localizing energy components to secure the Kingdom’s energy future. “The only certainty is the global demand for energy will increase. The Kingdom is expanding both its hydrocarbon resources and renewable energy initiatives,” he said, pointing to advancements in clean hydrogen, storage solutions, and carbon capture.

Abdulrahman Al-Samari, CEO of the Local Content and Government Procurement Authority, also praised the inclusion of local content requirements in renewable energy projects, stressing that procurement processes are key to advancing the localization agenda.

The first day of the Energy Localization Forum saw the signing of 124 agreements valued at over $27.7 billion, involving 118 companies, setting the stage for continued growth and innovation in Saudi Arabia’s energy landscape.