Saudi Arabia is set to manufacture steel towers for wind energy systems following two critical agreements by the Local Content and Government Procurement Authority. These agreements, in collaboration with Al-Yamamah Steel Industries Co. and Arabian International Co. for Steel Structures, aim to localize production and transfer essential knowledge in the wind energy sector.
During the Energy Localization Forum in Riyadh, the Ministry of Energy and LCGPA facilitated the signing of 107 agreements and memorandums of understanding, valued at SR104 billion ($27.69 billion). This initiative aligns with the National Renewable Energy Program, part of Vision 2030, which seeks to diversify energy sources and promote economic growth.
The energy ministry emphasized that these agreements will enhance local content development and expand supply chains, contributing to a sustainable energy future. According to the LCGPA, these efforts will establish new industries and create diverse job opportunities within the energy sector.
Abdulrahman bin Abdullah Al-Semari, CEO of the LCGPA, highlighted that localizing steel tower production is expected to add approximately SR1.1 billion to the GDP and create over 500 new jobs. This initiative will also strengthen local supply chains in renewable energy.
Additionally, the LCGPA has partnered with the National Unified Procurement Co. for Medicines, Medical Devices, and Supplies (Nupco) to regionalize insulin manufacturing and facilitate knowledge transfer. This agreement targets six to seven insulin products, valued at SR3.5 to SR4 billion.
As Saudi Arabia advances its Vision 2030 objectives, these initiatives in renewable energy and healthcare demonstrate the Kingdom’s commitment to a diversified, sustainable economy that emphasizes local production and job creation.
