Saudi Arabia: $1300 billion investment campaign

Partagez:

Saudi Arabia is launching a $1300 billion investment campaign in the private sector.
The aim is to wean the country’s economy off its dependence on oil exports.
These account for more than half of the country’s income.
This initiative is part of a colossal $3200 billion program.

Saudi Arabia invests $1300 billion to diversify its economy

Weaning Saudi Arabia off its dependence on oil exports

Mohammed Ben Salmane, Crown Prince of Saudi Arabia, has declared that 24 of the kingdom’s companies will contribute to $1300 billion of investment in the country’s private sector by 2030.
Aramco and its subsidiary SABIC will account for 60% of the total.
This massive investment is part of Shareek’ s plan to diversify the economy.
This is because the Saudi economy is more than half dependent on oil exports.
Prince Mohammed commented:

“The new Shareek plan will help the private sector to create hundreds of thousands of new jobs, and increase the private sector’s contribution to GDP to 65% by the end of the decade”.

Cutting dividends for the largest companies

Saudi Arabia has also announced that participating companies will reduce their dividends in order to increase capital expenditure.
In exchange, Saudi Arabia will offer, among other things, soft loans and tax incentives in free trade zones.
However, the Crown Prince declared that dividends for Aramco shareholders will remain stable.

“We promised them and we will keep that promise,” he declared.

Recycling money

The country plans to divest its shares in certain companies over the next few years.
It is also planning IPOs for future projects.
For example, Aramco is expected to sell more shares as part of plans to strengthen its sovereign wealth fund, the PIF (Public Investment Fund).

“If you own 70% of a company, the PIF must maintain its majority at 30% and sell 40%,” says the Crown Prince.

Global program of $3200 billion

This plan is part of a global program of $3200 billion in investments planned between now and 2030.
This amount also includes $800 billion from the FIP and $1100 billion as part of a new investment strategy.
The twin shocks of the pandemic and falling oil prices have taken their toll on the country’s economy.
Unemployment in Saudi Arabia reached 14.9% in the third quarter of 2020.
This announcement by Crown Prince Mohammed ben Salmane thus underlines the government’s determination to revive the national economy and stimulate job creation.
It also gives a boost to the Vision 2030 economic diversification plan, which aims to increase non-oil revenues.

  • Populaires ​
France: EDF and Marcegaglia conclude a ten-year electricity agreement in Fos-sur-Mer
BrightNight launches 300 MW solar plant in Arizona with Cordelio Power
Woodside completes sale of 40% stake in Louisiana LNG project to Stonepeak
Trianel deploys 900 MW battery to bolster German grid flexibility
UK refuses to finance subsea electrical link with Morocco
Renewable energy: access improving, but financing still insufficient for Africa
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
China and the United States improve their energy performance in an unstable global context
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
Algeria and Angola strengthen energy cooperation at US–Africa summit
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
UK urged to accelerate electricity price reforms
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
Brussels expands subsidies for low-carbon technologies and nuclear power
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan Faces Major Electricity Shortfall of 89 GW by 2050
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
EU Approves Targeted Energy Aid for Europe’s Heavy Industries
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius launches international tender for floating power plant
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Spain and Portugal Strengthen Networks Following April Blackout
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia Commits 190 Billion USD to Expand Energy Capacity by 2034
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
France: Moratorium on renewables; warning about immediate industrial impact
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
New European Battery Regulation Disrupts Europe’s Industrial Sector
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
European Parliament urges Brussels to act on energy grids
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.
Europe Commits Major Investments to Electricity Grids and the Clean Industrial Deal
The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.
Wood Mackenzie highlights advantage of regulated utilities amid data centre boom
In the United States, regulated electric grid operators hold a decisive advantage in connecting new data centres to the grid, now representing 134 GW of projects, according to a Wood Mackenzie report published on June 19.
France sets renewable energy target of 200 TWh by 2030
The French National Assembly approves a specific target of 200 TWh renewable electricity production by 2030 within a legislative text extensively debated about the future national energy mix.
United States: emissions stagnate in 2024, uncertainty under Trump administration
In 2024, US CO₂ emissions remain stable at 5.1bn tonnes, as the Trump administration prepares hydrocarbon-friendly energy policies, raising questions about the future evolution of the American market.
France: Anticipated Energy Decree, National Assembly Denounces Democratic Risk
The early publication of France's energy decree triggers strong parliamentary reactions, as the government aims to rapidly secure investments in nuclear and other energy sectors.
Spain Blackout: Analysis of Causes and European Financing Plan Approved
Seven weeks after the major Iberian power outage, Spain identifies technical network failures, while the European Investment Bank approves major funding to strengthen the interconnection with France.
European Union Sets Precise Timeline for Russian Gas Import Ban
The European Union has announced a detailed schedule aiming to definitively halt Russian gas imports by the end of 2027, anticipating internal legal and commercial challenges to overcome.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS