GE to Invest $1.4 Billion in Saudi Arabia
May 23 2016 - 8:19AM
Dow Jones News
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 Connecticut-based conglomerate said it was teaming up with
two partners, including Saudi state-owned oil giant Aramco, to
build a $400 million manufacturing facility for the energy and
marine sector that is expected to create 2,000 new jobs in the
kingdom.
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 are being made at a time when the Saudi
government is trying to completely overhaul the country's
oil-dependent economy following the collapse in crude prices.
Saudi's economy is still defined by a bloated public sector and
predominantly fueled by oil revenues.
As part of the 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 2000 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 23, 2016 08:04 ET (12:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Mar 2024 to Apr 2024
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Apr 2023 to Apr 2024
