JEDDAH: Multinational technology company Siemens unveiled its new electrical equipment factory in Jeddah in the presence of the Kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef.
In partnership with its Saudi partner, Arabia Electric Ltd Equipment Co, the firm inaugurated the facility on Feb. 29 at the Modon Oasis in Jeddah.
The 6,000 sq. m factory produces electrical equipment such as substation automation systems, communication and protection panels, and other products for the utility, oil and gas, infrastructure, and petrochemical industries.
The facility will operate with a 120-person workforce.
In an interview with Arab News, the minister of industry highlighted that establishing factories by major international companies in the Kingdom indicates the country’s capability to accommodate diverse industries. Moreover, he underscored that “Saudi Made” branding will soon adorn Lucid automobiles.
“Saudi Arabia remains committed to its strategy as we have created a favorable environment for industrial investment, allowing industry investors to strengthen their capabilities within the Kingdom. This endeavor goes beyond serving the local market, aiming to expand exports to both the region and worldwide,” Alkhorayef said.
He added that the country industry clusters in Saudi Arabia can be divided into two types: “One is the industrial zones and the Modon Oases, like this one here in Jeddah. We are also working closely with several industries that need to exist in clusters to create a sort of integration between them, such as the car manufacturing cluster. We have previous experience in such clusters, like the ones of petrochemicals in Jubail and Yanbu.”
He revealed that they are planning to establish a food manufacturing cluster in Jazan as well as a mineral industry cluster in Ras Al-Khair in the country’s Eastern Province.
Commenting on the inauguration of the Siemens factory in Jeddah, Alkhorayef congratulated the German company for establishing the facility.
“This move by Siemens serves as proof that the opportunities in Saudi Arabia position it as a significant hub for manufacturing companies,” he remarked, emphasizing that the electricity sector stands out as one of the largest divisions experiencing substantial growth.
The minister elaborated, stating: “We will persist in attracting numerous investments, leveraging capabilities previously imported from outside the Kingdom, and even exporting products developed within the country.”
Alkhorayef concluded his interview with Arab News by asserting that Saudi Arabia is earnestly prioritizing nationalization.
He highlighted that the country’s industrial strategy capitalizes on its inherent strengths, including robust domestic demand and abundant raw materials such as oil, gas, petrochemicals, and minerals.
Additionally, Saudi Arabia’s strategic geographical location further enhances its appeal to both local and international companies.
Ahmad Hawsawi, CEO of Siemens in Saudi Arabia, said that the company is proud to contribute to the Kingdom’s journey toward an innovative and sustainable future.
“Our new factory in Jeddah is not just a manufacturing facility; it’s a hub of innovation designed to meet the Kingdom’s growing demands for energy solutions. By deploying Siemens’ cutting-edge technologies, Saudi Arabia is set to witness unparalleled improvements in the efficiency and resilience of its energy systems.” Hawsawi said.
Eltje Aderhold, consul general of Germany, said that she is “very proud” of this cooperation between Saudi Arabia and her country.
“This project represents the good development of cooperation between Germany and Saudi Arabia, and it is a sign that we are building our future together,” she said, adding that German companies and their Saudi partners are increasingly coming together.
Aderhold further said that Germany is “very much interested in working with its Saudi partners toward Vision 2030, investing, transforming new, clean energy, protecting climate and developing new technologies.”
The inauguration ceremony was also attended by Vice Minister of Industry and Mineral Resources for Industrial Affairs Khalil Salamah, along with executives from the Saudi Authority for Industrial Cities and Technology Zones, the Local Content and Government Procurement Authority and the National Industrial Development Center.
Additional firms in attendance included the Saudi Electricity Co., Aramco, and SABIC, as well as Ma’aden, EA Juffali & Brothers, and other prominent government and private sector companies.
Khaled Juffali, chairman of Ebrahim A. Juffali and Brothers Group, and also a member of the Arabia Electric Equipment Co. board and Siemens in Saudi Arabia, said: “We are thrilled to open our new facility in Jeddah, which represents our strong belief in the potential of Saudi Arabia’s economic development plan.
"Our commitment goes beyond investment in infrastructure; we are here to build partnerships, support talent development, and contribute to the Kingdom’s sustainability goals according to Saudi Arabia’s Vision 2030.”