General Electric and kingdom agree $1.4bn plan
General Electric (GE) yesterday confirmed it has made a series of deals with Saudi Arabia worth over $1.4 billion as part of the kingdom’s ambitious plan to wean itself off crude oil.
GE said $1 billion worth of projects would be implemented with the Saudi Arabian Industrial Investments Co, which was formed in 2014 by royal order to boost the country’s manufacturing industry.
Another $400 million would go toward building a forging and casting manufacturing facility for the marine and energy industry with hopes of it being operations by 2020 and providing more than 2,000 jobs.
In the future, there’s a possibility of another $2 billion in further projects as well.
GE’s chairman and CEO Jeffrey Immelt said that the project showed the company wanted to expand its long-time presence in Saudi Arabia.
“Together, we will create quality jobs for Saudi youth... boost exports, enhance economic competitiveness and support the vision and aspirations of Saudi Arabia,” Immelt said.
The deal comes as part of the kingdom’s Vision 2030 plan to wean itself off dependence on oil production.
The plan, pushed by Deputy Crown Prince Mohammed bin Salman, the son of King Salman, also calls for floating a stake in the world’s largest oil company, Saudi Arabian Oil Co, and setting up one of the world’s biggest investment funds.