GE announces deals worth more than $1.4b with Saudi Arabia

DUBAI, UAE — General Electric Co.  clinched a series of deals with Saudi Arabia, which are worth more than $1.4 billion, the company said on Monday.

The deals are in line with Saudi Arabia’s plans to wean itself off crude oil.

GE said $1 billion worth of projects would be implemented by 2017 with the Saudi Arabian Industrial Investments Co., which formed in 2014 by a royal order to boost the country’s manufacturing industry. 

GE said its agreement with the organisation would develop industry and manufacturing in Saudi Arabia, as well as create jobs for the Saudi young generation.

Another $400 million would go towards building a forging and casting manufacturing facility for the marine and energy industry in the kingdom, with hopes of it being operational by 2020.

The facility is expected to provide over 2,000 jobs, GE said. In the future, there’s a possibility of another $2 billion in projects coming as well after 2017, the company said.

Other projects that GE did not offer monetary values for include boosting the local aviation repair industry, offering digital services to factories, working on manufacturing LED lights and training young men and women.

GE’s Chairman and CEO Jeffrey Immelt said the project showed the company wanted to expand its long-time presence in Saudi Arabia in “a new and visionary way”.

“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 in a statement.

The deal comes as part of the kingdom’s Vision 2030 plan, announced by Deputy Crown Prince Mohammed Bin Salman, to wean itself off dependence on oil production. 

GE, an American multinational conglomerate corporation, headquartered in Fairfield, Connecticut, has worked in Saudi Arabia for over 80 years. It has more than 2,000 employees in the kingdom working in the aviation, healthcare, oil, utilities and transportation sectors. Under the deals announced Monday, GE hopes to expand its workforce in Saudi Arabia to 4,000 people by 2020.