PHOTO
24 May 2016
JEDDAH: In a major boost for Vision 2030, the Saudi Arabian Industrial Investments Company (SAIIC) and multinational General Electric (GE) inked a SR11.25 billion investment pact to expand local manufacturing and innovation in water, energy, aviation, technology and other sectors starting from this year.
The memorandum of understanding between the SAIIC and GE is expected to create jobs for thousands of Saudis and boost the small and medium business sector. Joint investments of $1 billion (SR3.75 billion), will be rolled from this year, in addition to potential investment of $2 billion (SR7.5 billion) in 2017.
Abdullatif Al-Othman, SAIIC's chairman, 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 SAIIC's mission and supports Saudi Vision 2030 aimed at strengthening the Kingdom's economic diversification."
"The SAIIC'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."
The SAIIC, which was formed in 2015, is a joint venture of Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and Saudi Arabia Basic Industries Corporation (SABIC), and has the mandate to invest and develop globally competitive industrial sectors in the Kingdom.
The SAIIC is part of the government's plans announced on April 25 this year to diversify the economy away from oil, led by Deputy Crown Prince Mohammed bin Salman. At the heart of the initiative is the creation of a $2 trillion sovereign wealth fund, which would include the initial public offering of 5 percent of oil giant Saudi Aramco.
Addressing a press conference at Park Hyatt in Jeddah on Monday, GE Chairman and CEO Jeffrey Immelt said GE would double its work force in the Kingdom from 2,000 to 4,000 by 2020 and its Saudi supplier base from 150 to 300 to build a strong Saudi supply chain that supports GE's local manufacturing facilities. It would also have training for over 10,000 Saudis in leadership, technical and engineering training locally and abroad. It would further focus on achieving in excess of $100 million in exports of products and services from GE to different parts of the world.
GE is also partnering with Saudi Aramco, Cividale SpA, Middle East Propulsion Company (MEPC), Saudi Industrial Property Authority (MODON), Prince Mohammed bin Salman bin Abdulaziz Al-Saud Foundation (MISK), Asharqia Chamber, National Industrial Clusters Development Program (NICDP), Sulaiman Al-Habib Medical Group (HMG) and SaudiVax in the new initiatives.
The key initiatives include a forging and casting manufacturing facility with Saudi Aramco and Cividale SpA to supply the Kingdom and global markets with forged and cast materials for the marine and energy industries. With a total investment of $400 million, the facility will be operational by 2020 and create over 2,000 new local jobs.
There is a planned localization of aviation capabilities. GE Aviation is currently working with Saudi-based Middle East Propulsion Company (MEPC) to develop a Maintenance, Repair and Overhaul (MRO) facility for select Saudi Arabia's military engines.
GE is partnering with MODON to transform the manufacturing sector of the Kingdom by digitizing 10 factories with GE's Brilliant Manufacturing Software Suite. This will strengthen the operational efficiency and productivity of these factories, and help gain significant cost savings.
GE's energy startup Current, powered by GE, is establishing an all-new GE Center of Excellence for LED Luminaire Manufacturing at the GE Manufacturing and Technology Center in Dammam, and will be operational late 2016. It will manufacture and test outdoor LED fixtures that can reduce energy use by as much as 50 percent and produce about 100,000 to 300,000 LED fixtures each year.
GE is launching an exclusive Saudi Leadership Academy in partnership with MISK, a non-profit organization that aims to enable learning and development among Saudi youth. The high-level training program will be held in the Kingdom and at GE's Crotonville facility in the US.
GE has signed an understanding with the Asharqia Chamber focused on Saudi women-owned and led SMEs and start-ups, to cover 3D printing and design, Computer Numerical Control (CNC) milling, injection molding, and other industrial programs. Additional digital trainings will enable them to develop industrial software applications on Predix. GE aims to train 1,000 women in the next five years.
In a biotechnology initiative NICDP, GE has started a design study with SaudiVax for a multipurpose vaccine and monoclonal antibody facility in Riyadh that will help develop a life sciences industry in the Kingdom and create over 1,500 new jobs.
Sulaiman Al-Habib Medical Group (HMG) and GE Healthcare plan to jointly deliver Managed Radiology Services, with the goal of driving productivity and strengthening the efficiency of the health care sector across the Kingdom.
JEDDAH: In a major boost for Vision 2030, the Saudi Arabian Industrial Investments Company (SAIIC) and multinational General Electric (GE) inked a SR11.25 billion investment pact to expand local manufacturing and innovation in water, energy, aviation, technology and other sectors starting from this year.
The memorandum of understanding between the SAIIC and GE is expected to create jobs for thousands of Saudis and boost the small and medium business sector. Joint investments of $1 billion (SR3.75 billion), will be rolled from this year, in addition to potential investment of $2 billion (SR7.5 billion) in 2017.
Abdullatif Al-Othman, SAIIC's chairman, 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 SAIIC's mission and supports Saudi Vision 2030 aimed at strengthening the Kingdom's economic diversification."
"The SAIIC'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."
The SAIIC, which was formed in 2015, is a joint venture of Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and Saudi Arabia Basic Industries Corporation (SABIC), and has the mandate to invest and develop globally competitive industrial sectors in the Kingdom.
The SAIIC is part of the government's plans announced on April 25 this year to diversify the economy away from oil, led by Deputy Crown Prince Mohammed bin Salman. At the heart of the initiative is the creation of a $2 trillion sovereign wealth fund, which would include the initial public offering of 5 percent of oil giant Saudi Aramco.
Addressing a press conference at Park Hyatt in Jeddah on Monday, GE Chairman and CEO Jeffrey Immelt said GE would double its work force in the Kingdom from 2,000 to 4,000 by 2020 and its Saudi supplier base from 150 to 300 to build a strong Saudi supply chain that supports GE's local manufacturing facilities. It would also have training for over 10,000 Saudis in leadership, technical and engineering training locally and abroad. It would further focus on achieving in excess of $100 million in exports of products and services from GE to different parts of the world.
GE is also partnering with Saudi Aramco, Cividale SpA, Middle East Propulsion Company (MEPC), Saudi Industrial Property Authority (MODON), Prince Mohammed bin Salman bin Abdulaziz Al-Saud Foundation (MISK), Asharqia Chamber, National Industrial Clusters Development Program (NICDP), Sulaiman Al-Habib Medical Group (HMG) and SaudiVax in the new initiatives.
The key initiatives include a forging and casting manufacturing facility with Saudi Aramco and Cividale SpA to supply the Kingdom and global markets with forged and cast materials for the marine and energy industries. With a total investment of $400 million, the facility will be operational by 2020 and create over 2,000 new local jobs.
There is a planned localization of aviation capabilities. GE Aviation is currently working with Saudi-based Middle East Propulsion Company (MEPC) to develop a Maintenance, Repair and Overhaul (MRO) facility for select Saudi Arabia's military engines.
GE is partnering with MODON to transform the manufacturing sector of the Kingdom by digitizing 10 factories with GE's Brilliant Manufacturing Software Suite. This will strengthen the operational efficiency and productivity of these factories, and help gain significant cost savings.
GE's energy startup Current, powered by GE, is establishing an all-new GE Center of Excellence for LED Luminaire Manufacturing at the GE Manufacturing and Technology Center in Dammam, and will be operational late 2016. It will manufacture and test outdoor LED fixtures that can reduce energy use by as much as 50 percent and produce about 100,000 to 300,000 LED fixtures each year.
GE is launching an exclusive Saudi Leadership Academy in partnership with MISK, a non-profit organization that aims to enable learning and development among Saudi youth. The high-level training program will be held in the Kingdom and at GE's Crotonville facility in the US.
GE has signed an understanding with the Asharqia Chamber focused on Saudi women-owned and led SMEs and start-ups, to cover 3D printing and design, Computer Numerical Control (CNC) milling, injection molding, and other industrial programs. Additional digital trainings will enable them to develop industrial software applications on Predix. GE aims to train 1,000 women in the next five years.
In a biotechnology initiative NICDP, GE has started a design study with SaudiVax for a multipurpose vaccine and monoclonal antibody facility in Riyadh that will help develop a life sciences industry in the Kingdom and create over 1,500 new jobs.
Sulaiman Al-Habib Medical Group (HMG) and GE Healthcare plan to jointly deliver Managed Radiology Services, with the goal of driving productivity and strengthening the efficiency of the health care sector across the Kingdom.
© Arab News 2016
