DUBAI May 25 General Electric's joint
venture to manufacture gas turbines in Saudi Arabia will start
production by the end of the year, the chief executive of its
state-backed Saudi partner said on Thursday.
GE and Saudi industrial development company Dussur signed an
agreement on Wednesday to set up the one billion riyal ($267
million) joint venture in the eastern city of Dammam.
Dussur CEO Rasheed al-Shubaili said manufacturing of GE's
H-Class turbines in Saudi Arabia would start before the end of
the year with the first turbine to be completed in 2018.
The Saudi made gas turbines would be sold in the country and
to international customers, he said in an interview in Dubai.
Dussur, formerly Saudi Arabian Industrial Investments
Company (SAIIC), was established in 2016 by state firms Saudi
Aramco, Public Investment Fund, Saudi Basic Industries
It aims to develop industrial sectors in Saudi Arabia as
part of the government's plan to create jobs and diversify the
The joint venture followed a memorandum of understanding
signed last year by GE and Dussur that is expected to draw
nearly 3.75 billion riyals of investment by the two companies in
Al-Shubaili declined to say when the joint venture, which is
55 percent owned by Dussur and 45 percent owned by GE, aimed to
make a profit.
"We're a long-term patient investor. Our investments are
going to profitable," al-Shubaili said.
GE and Dussur signed the joint venture agreement days after
GE announced $15 billion of deals with Saudi Arabia during
United State President Donald Trump's visit to the Kingdom last
($1 = 3.7503 riyals)
(Reporting by Alexander Cornwell. Editing by Jane Merriman)