A major Saudi electrical company has partnered with the Royal Philips to drive energy efficiency in the Kingdom.

The Royal Philips, a global leader in lighting, and General Lighting Company (GLC), a major lighting company in Saudi Arabia celebrated the official start of their joint venture (JV) Philips Lighting Saudi Arabia at the Four Seasons Hotel in Riyadh on Monday.

With an investment of $300 million to the existing facility, the Royal Philips will own a fifty-fifty partnership in the new venture.

Abdullah Ibrahim Al-Hobayb, chairman of GLC group, told Arab News that the new investment would not only boost the joint venture business but also help develop the Kingdom's economy. He added that with the Philips' investment, the JV will provide a full range of lighting solutions and strengthen Philips’ footprint in the region, while creating growth opportunities in sustainable technologies to support the government’s objective to increase energy efficiency.

A recent study by the Saudi Centre for Energy Efficiency confirmed that Saudi Arabia's energy consumption is among the highest in the world, with an average per capita consumption of electricity that is twice the global average. Lighting is responsible for 19 percent of worldwide electricity use, presenting a significant opportunity for energy savings in the home, in offices, buildings and roads across the Kingdom. “The world needs relevant innovations to respond to today’s global changes and secure a bright future. We are very pleased to partner with Philips on this initiative. We share many of the same values, including reducing our impact on the environment and using innovation to drive our sustainability initiatives. LED is a major breakthrough in the lighting industry that will drive transformation in that field. It will bring massive energy and cost savings to our planet and customers,” said Al-Hobayb.

Philips has pioneered many of the key breakthroughs in lighting over its 121-year history, and will support KSA in its transformation into an energy efficient nation. Philips has illuminated a number of landmarks in the country with its energy efficient LED lighting systems such as the Kingdom Tower in Riyadh and the recently inaugurated Jeddah Flag Pole, the tallest in the world with 13 special lights, representing the 13 governorates of Saudi Arabia.

“By joining forces with GLC, we will combine Philips’ technology and expertise in LED with their deep local market knowledge and strong commercial capabilities, and together we will make a step change in energy efficiency in Saudi Arabia,” said Eric Rondolat, CEO Philips Lighting.

“Together we are shaping the future with new connected LED-based lighting technologies that go beyond illumination into a fully digital world to improve people’s lives with brighter, safer cities, more productive office environments and personalized experiences at home,” he added.