In presence of Saudi Crown Prince.. “Shareek” diversification ‎plan outlines 8 companies, at SR192.4 bln value

In the presence of Prince Muhammad bin Salman bin Abdulaziz Al Saud, Crown Prince, Chairman of the Council of Ministers, and Chairman of the Large Companies Investments Committee  – may Allah protect him – the ceremony was held today to announce the first package of large companies’ projects (Shareek) joining the Partnership Enhancement Program. Shareek is designed to support major Saudi companies to enable higher growth of the private sector, thus contributing to achieving the national aspirations set by the Kingdom’s Vision 2030.

The Crown Prince launched the program on March 30, 2021, and he is supervising its implementation through his chairmanship of the Large Companies Investments Committee (Shareek). The number of companies included in the program is currently 28 companies from the private sector in the Kingdom.

The ceremony, which was held in the presence of a number of senior government officials, in addition to chairmen of the boards of directors and CEOs of a number of major Saudi private sector companies and affiliated to the “Shareek” program, witnessed the signing of a number of framework agreements and deals for 12 projects. It will be implemented by eight companies, in a number of strategic and vital sectors, and these projects contribute to enhancing the economic growth of the Kingdom, localizing industries, stimulating innovation and enhancing the level of partnership between the public and private sectors.

The “Shareek” program helps companies that meet the qualification criteria to increase the volume of their investments, accelerate the pace of implementing their projects, and explore new investment opportunities by providing them with government support.

In his speech during the ceremony, Abdulaziz Al-Arifi, CEO of the “Shareek” program, stated that the Kingdom’s Vision 2030, led by the Crown Prince, contributed to making the Kingdom a leading destination for investment and growth through the methodology of expanding partnership with the private sector, which is a pillar of development and access to a sustainable economy, adding that the “Shareek” program has become a major choice for major private sector companies, as the program enabled 12 private sector projects in four vital sectors.

He pointed out that the total value of the projects announced during the ceremony amounts to about 192 billion riyals ($51 billion), and the share of the investments of major companies (partner), of which is about 120 billion riyals, and its impact on the Kingdom’s GDP reaches a value of 466 billion riyals over the next two decades, multiplying the economy is estimated at more than (2.43) times, and bears high strategic and economic importance for the Kingdom.

Al-Arifi added that these projects enhance the growth of 8 national companies and contribute to raising their competitive capabilities internationally. They also create a high positive impact across entire value chains, which results in great investment opportunities for a larger segment of companies in the private sector. The inclusive economy of projects is one of the main criteria that the program considers when providing enabling factors.

The first package of supported projects will have an economic and strategic impact on a number of economic sectors in the Kingdom, in addition to providing 64,451 new job opportunities. That would contribute to creating more than ten thousand jobs:

A joint project to establish a factory for iron sheets, which aims to achieve self-sufficiency for the Kingdom by 2030.

Cloud computing services project that will bring Google cloud services to the Kingdom and establish its position as a leading center for advanced cloud computing technologies.

A joint venture to manufacture ship engines will contribute to the development of a sustainable marine industries sector and achieve more value in the metal and machinery manufacturing sectors, which play a key role in diversifying industrial development efforts.

A joint project for casting and forming metals in Ras Al-Khair, which will enhance the integration of industrial supply chains in the Kingdom.‎

The Amiral Petrochemical Complex project, which contributes to the localization of the production of new chemicals with the aim of strengthening the Kingdom’s global leadership in the field of petrochemical industries.

Also in the energy sector, ACWA Power will receive support to establish the largest green hydrogen production plant in the world, as it is being developed in partnership with “NEOM Green Hydrogen” and “Air Products Qudra.” This project highlights the enormous potential Kingdom as a leading country in the field of green energy, and supports its efforts to reduce carbon emissions.

For its part, the Saudi Arabian Mining Company (Maaden) will receive support from the program to accelerate the completion of its “Phosphate 3” project in the Waad Al-Shamal City, which is expected to contribute to strengthening the company’s position as the third largest producer of phosphate fertilizers globally by 2029, and to consolidate The leadership of the Kingdom of Saudi Arabia within the global value chain of the agricultural sector, which helps support global food security.

The petrochemical sector:

SABIC obtained program support for the catalyst industry project, with the aim of reducing dependence on imports and promoting exports by establishing the first catalyst manufacturing center in the Kingdom.

The communications sector:

With the support of Shareek program, stc group intends to implement a submarine cable project in a strategic move that will enhance the Kingdom’s position as a digital hub and a reliable destination for data traffic in the Middle East and North Africa region.

The transport and logistics sector:

The leading Saudi company in the field of logistics services, Bahri, intends to increase its capacity to transport ammonia gas through the implementation of a strategic project that was supported throug “Shareek”. The project aims to provide ammonia transport services for the first time in the Kingdom, thus reducing dependence on foreign tankers by enhancing local content in the logistics services sector.

It is noteworthy that the “Shareek” program was designed with the aim of contributing to achieving the goals of the Kingdom’s Vision 2030 represented in raising the private sector’s contribution to the Kingdom’s gross domestic product to the limits of 65% and increasing the proportion of non-oil exports from 16% to 50%. The program also aims to increase the development of private sector investments to reach 5 trillion riyals by 2030. The program is implemented with the support of several supervisory committees specialized in a number of sectors. The projects announced at the ceremony represent the first package of supported projects, as it is expected that many projects that will be supported will follow during the coming period and will be announced in due course.