Roadmap Unveiled for Localization of Renewable Energy Industry in Saudi Arabia

  • 2/4/2019
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The Saudi Chamber of Commerce and Industry organized a workshop on Sunday, titled "Future Projects for Renewable Energy in the Kingdom.” The workshop unveiled a road map to localize the renewable energy industry and the governments determination to provide support to small and medium-sized enterprises working in this field. Participants in the workshop stressed that the percentage of localization in renewable energy projects that will be launched in 2020 and afterwards will amount to 60 percent in light of expectations of 40 percent in projects that will be held this year. The local content in the projects that were launched in 2017 was 30 percent, said Turki al-Shehri, consultant to the office of the Minister of Energy, Industry and Mineral Resources, pointing out that this percentage represents the projects’ capital. He added that localization of jobs in “Skaka” project reached 30 percent, highlighting a study prepared by King Abdullah City for Atomic and Renewable Energy in 2017 indicated that the number of employees in Saudi companies operating in the field of renewable energy are between 800 and 900 workers. It added that 170 of them work in the private sector and that the number doubled 17 times by the end of 2018. “By the end of 2018, the number has amounted to 3,000 Saudi employees working for Saudi companies in the field of renewable energy.” “Regarding the projects that will be launched in 2019, our goal is to increase local content by 40 to 60 percent, but it will include slightly different tenders because it will focus on competitive techniques,” Shehri said. Shehri also shed light on the need to boost governance so that tenders don’t become a burden, stressing that industry should be sustainable.

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