Ministry of Energy signs deal to support sustainability of Tuwaiq Casting project

Agreement signing ceremony

Saudi Arabia's Ministry of Energy signed an agreement aimed at supporting the growth and sustainability of Tuwaiq Casting and Forging Co.'s project.

In a statement, the ministry said the agreement comes within the framework of the Kingdom's efforts to support and improve the investment environment, localize industry, and develop the manufacturing sector, to maximize the added value that the Kingdom reaps from available resources.

Minister of Energy Prince Abdulaziz bin Salman said Tuwaiq is one of the projects supported by the ministry to contribute to localizing the various projects of the energy sector.

He pointed out that the projects of the energy sector, in the fields of oil and gas, petrochemicals, conventional and renewable energy, as well as hydrogen, are a key pillar of the national economy.

The value of target projects in the sector until 2030 is estimated at SAR 2.85 trillion, the minister noted.

To achieve the goal of the energy system, which is to localize 75% of the materials required for the energy sector projects, the ministry seeks to attract Saudi investments and capabilities worth SAR 260 billion over the next decade.

The ministry facilitated some governmental incentives that enabled the launch of this qualitative investment, which will open several strategic value chains, the prince said.

He added that Tuwaiq will likely contribute to increasing the gross domestic product (GDP) by nearly SAR 21.375 billion, as well as localizing supply chains for machinery and equipment.  

This agreement will support the transfer and localization of industrial knowledge, as well as create direct and sustainable job opportunities for citizens.