GE Agrees to $3B Saudi Arabia Investments Outside of Crude
(Bloomberg) - General Electric Co. agreed to take part in $3 billion of Saudi Arabia investments as the desert kingdom seeks to diversify its economy away from crude.
The U.S. company is collaborating with the Saudi Arabian Industrial Investments Company, a joint venture that includes Saudi Arabian Oil Co., or Aramco, on $1 billion of spending by 2017, SAIIC and GE said in a joint e-mailed statement on Monday. That will be followed by a potential $2 billion to drive projects in water, energy, aviation, digital and other non-oil industries, the companies said. The deals follow a visit to the Middle East country by GE Chief Executive Officer Jeffrey Immelt.
The partnership is part of Saudi Arabia’s strategy to invest in industries other than oil after crude prices plunged. The project, known as Saudi Vision 2030 and championed by the Deputy Crown Prince Mohammed bin Salman, includes selling shares in Aramco, creating the world’s biggest sovereign wealth fund and generating more than $100 billion in additional non-oil revenue by 2020.
GE plans to double its workforce in Saudi Arabia to 4,000 by 2020, the Fairfield, Connecticut company said in a separate statement.
To contact the reporter on this story: Deema Almashabi in Riyadh at firstname.lastname@example.org To contact the editors responsible for this story: Samuel Potter at email@example.com John Bowker, Andrew Noël
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 44 Offshore Rigs
- Initial Negotiations with Saudi's Aramco to Refine Oil in Egypt - Oil Mnstr (Nov 14)
- RIA: Moscow, Riyadh Agree To Explore Aramco Taking Part In Novatek Project (Nov 13)
- Aramco Expects To Boost Capital Spending By About 10% (Nov 09)
Company: GE Oil & Gas more info
- GE's 12,000 Job Cuts Highlight Uneasy Shift to Renewable Energy (Dec 08)
- Baker Hughes Clinches Integrated Services Contract For PNG Gas Field (Aug 08)
- GE Sinks as Oil Outlook Sputters, Marring End of Immelt's Tenure (Jul 21)