By Nicolas Parasie

DUBAI -- General Electric Co. on Monday announced a raft of investments worth at least $1.4 billion in Saudi Arabia as the Persian Gulf kingdom seeks to reduce its oil dependence by further opening up its economy to international businesses.

The U.S. conglomerate said it plans to double its workforce in the kingdom by 2020 to 4,000 employees and would team up with two partners, including Saudi state-owned oil company Aramco, to build a $400 million manufacturing facility for the energy and marine sector.

GE also signed a memorandum of understanding to jointly invest $1 billion in several sectors such as water and aviation by 2017, alongside a Saudi entity comprising the country's biggest petrochemicals company, its public investment fund and Aramco. GE said also it would consider an additional $2 billion worth of investments in the same sectors after 2017.

"The joint investment and collaboration will be a game changer for the kingdom's industrial and digital sectors," said GE Chief Executive Jeffrey Immelt, who was meeting with ministers and business leaders in the coastal city of Jeddah on Monday.

GE's investments come at a time when the Saudi government is trying to completely overhaul the country's oil-dependent economy after the collapse in crude prices. The economy is straddled with a bloated public sector and is predominantly fueled by oil revenue.

As part of its new economic strategy, Saudi Arabia is trying to attract more international investors and their know-how to help create jobs for its growing population, while also trying to boost sectors that don't rely on the country's oil wealth. It also envisages a greater role for the private sector to provide jobs for Saudi citizens.

"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," said Abdullatif Al-Othman, chairman of SAIIC, the entity with which GE is planning the investments.

GE already employs around 2,000 people in Saudi Arabia as it has three offices and seven facilities there. The company also has the world's largest gas turbine service facility in Dammam. It was opened in 2011.

Write to Nicolas Parasie at nicolas.parasie@wsj.com

(END) Dow Jones Newswires

May 24, 2016 02:48 ET (06:48 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more GE Aerospace Charts.
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more GE Aerospace Charts.