ACWA Power and SABIC (Saudi Basic Industries Corporation) signed a Memorandum of Understanding for pursuing opportunities to boost local content in the economy of the Kingdom of Saudi Arabia.
Under the terms of the agreement, SABIC will support ACWA Power’s efforts to develop local content in the country by assessing and conducting feasibility studies for potential opportunities which could add value to the local economy and generate employment for Saudi nationals.
SABIC will also provide market research related to the local supply chain and facilitate collaboration between ACWA Power and potential local and international partners with expertise in the field. It will additionally support ACWA Power’s efforts through the Da’em and Mua’ahal programs powered by SABIC.
ACWA Power will explore the localisation potential of relevant international players to support the feasibility studies being undertaken by SABIC. ACWA Power will also provide SABIC with up-to-date technology trends, market insights and will support the growth of research and development in the renewable energy sector in the region.
The agreement was signed by Thamer Al Sharhan, managing director at ACWA Power and Fuad Mosa, VP of Local Content & Business Development at SABIC.
The partnership is in complete alignment with ACWA Power’s commitment to play a leading role in developing and promoting Local Content and establishing end-to-end Saudi value chain for all its activities and projects in the Kingdom.
Thamer Al Sharhan, Managing Director, ACWA Power, said: “One of the key strategies of ACWA Power is to encourage and develop local content in the markets we operate in. As such, we are perfectly aligned with the local content strategies of the Kingdom of Saudi Arabia which is not only the way-to-go for achieving economic diversification goals but also ensuring competitiveness of the local economy besides creating opportunities for local businesses and young Saudis.”
“ACWA Power looks towards this next phase of our efforts to enhance localisation with the support of our partner; SABIC. Partnering with the like-minded entity we hope to create synergies in our Local Content endeavours and are confident this partnership shall prove to be a giant step in the right direction,” Al Sharan said.
“Through our Sakaka Solar PV project, already we are seeing the benefits of supporting local content for the wider industry through numerous success stories. In addition to developing local businesses expertise in the renewable sphere, our efforts have also helped inject additional investment in the Saudi economy.” Al Sharhan added.
In November 2019, ACWA Power has established ACWA Industrial Investment Company (AIICO), a business unit dedicated to enable Local Content development and industrialization in the Kingdom. AIICO will focus on complying with mandatory Local Content targets for new projects, enhancing ACWA Power’s capacity to competitively increase Saudi exports abroad, promoting innovation, transferring knowledge, and creating job opportunities.