Agreements mark a major step toward developing Saudi Arabia’s wind energy infrastructure, creating 500 jobs and boosting the economy by SR1.1 billion

Saudi Arabia has taken a significant step towards advancing its wind energy sector with the signing of two localisation agreements aimed at manufacturing steel towers domestically. These agreements, signed by the Local Content and Government Procurement Authority (LCGPA) with Al-Yamamah Steel Industries Co. and Arabian International Co. for Steel Structures, seek to localise production and transfer essential knowledge within the wind energy sector.

The deals were announced during the Energy Localization Forum in Riyadh, where the Ministry of Energy and LCGPA oversaw the signing of 107 agreements and memorandums of understanding. These agreements, collectively valued at SR104 billion ($27.69 billion), are part of Saudi Arabia’s Vision 2030 strategy to diversify energy resources, strengthen the economy, and establish a sustainable energy future.

The Ministry of Energy highlighted that these agreements would bolster local content and build robust supply chains, contributing to a secure energy future that aligns with Saudi Arabia’s national goals. By transferring critical technology and know-how, the LCGPA aims to nurture a local industry for wind energy components, which is expected to contribute approximately SR1.1 billion to Saudi Arabia’s GDP and create over 500 new jobs in the sector.

Abdulrahman bin Abdullah Al-Semari, CEO of the LCGPA, underscored that this initiative represents a key part of the Kingdom’s renewable energy strategy, aligning with Saudi Arabia’s National Renewable Energy Program. The program not only aims to localise energy-related industries but also seeks to establish the Kingdom as a leader in renewable technology within the Middle East.

Saudi Arabia has been actively expanding localised production across other sectors as well. In addition to wind energy, LCGPA recently signed an agreement with Nupco, a Public Investment Fund-owned entity, to regionalise insulin manufacturing. This insulin localisation project targets the production of six to seven types of insulin, with an expected total market value of approximately SR3.5 to SR4 billion, in collaboration with strategic investors.

This emphasis on localisation and technology transfer underscores Saudi Arabia’s commitment to building a diversified and sustainable economy. As the Kingdom accelerates its progress toward its Vision 2030 objectives, these agreements in renewable energy and healthcare highlight Saudi Arabia’s determination to create a competitive, resilient market driven by local talent and innovation.