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The Future Investment Initiative (FII) summit in Riyadh, also known as the ‘Davos in the desert’, is a platform to market Saudi Arabia as an investment destination and a high-profile investor who can deploy its petro-dollars overseas.
Here are some of the big deals announced at the summit that are expected to fuel Saudi's Vision 2030, the kingdom’s grand plan to diversify from its oil economy.
Aramco, ENOWA invest in e-fuel
Aramco and ENOWA, NEOM’s energy and water company, have signed an agreement to construct and establish a synthetic electro fuel (e-fuel) demonstration plant. Located in ENOWA’s Hydrogen Innovation and Development Center (HIDC), the plant will produce 35 barrels per day of low-carbon, synthetic gasoline from renewable-based hydrogen and captured carbon dioxide. Once complete, the integrated facility will generate 12 tonnes of synthetic methanol per day from green hydrogen and CO2. The HIDC will also produce green hydrogen by leveraging an on-site 20-megawatt electrolyzer, powered by renewable energy sources.
Investment in power
ACWA Power CEO Marco Arcelli spoke to Bloomberg on the sidelines of FII to say Saudi Arabia will need to invest hundreds of billions of dollars this decade on renewable energy and natural gas-fired electricity to meet its generation capacity targets. The project will require building 60 to 80 gigawatts of power plants using renewable sources like wind and solar and about 30 GW of gas-fired plants.
10 film projects in AlUla
Film AlUla and Hollywood production company Stampede Ventures signed a $350 million three-year deal to bring 10 projects to Saudi Arabia’s historic location of AlUla. The partnership is a part of the Royal Commission for AlUla’s drive to establish the city as a creative hub, with the film agency also offering additional rebates and incentives to lure big-ticket productions. Greg Silverman, the CEO of Stampede Ventures, is an entertainment industry veteran known for his track record at Warner Brothers, where he worked on more than 125 films to generate more than $38 billion at the worldwide box office, most notably, the Harry Potter series and Christopher Nolan’s Batman series.
Satellite connectivity
Tonomus, NEOM’s technology and digital infrastructure subsidiary, signed a multi-year agreement with stc group to acquire Tonomus’ Low Earth Orbit (LEO) satellite connectivity capacity in Saudi Arabia. The agreement will allow stc to offer high-speed broadband internet and data services, as well as business continuity solutions to government institutions, large enterprises and SMEs across the kingdom.
AlUla’s tramway project
The Royal Commission for AlUla (RCU) has awarded France-based global rail transport company Alstom the rolling stock contract for the AlUla experiential tramway project. The low-carbon AlUla tramway will have 20 trains running on a 22.4 km line with 17 strategic stations and stops. It will connect five core historical districts, RCU said in a statement on Tuesday. The tramway, a catalyst for RCU’s expansive journey through time (JTT) masterplan, is set for activation in the second half of 2027, with developers slated to join the infrastructure work in 2024.
GFH’s acquisition
GFH Financial Group has acquired food services and logistics business Gulf Central Company in Saudi Arabia, which has an enterprise value of SAR 500 million, a release stated. GFH stated the company had demonstrated a strong financial performance and maintained robust results through multiple business cycles, an extensive premium product portfolio, and a diverse base of more than 1,000 blue-chip customers. By 2030, the Saudi National Industrial Development & Logistics Program (NIDLP) targets adding $453 billion in private sector investment, contributing $320 billion to the GDP and creating 1.6 million new jobs in the country.
$6 billion funding for Mena projects
The Islamic Development Bank and World Bank unveiled a new partnership to drive impact and improve the lives of people in the Middle East and North Africa. It is expected to support joint operations that could involve up to $6 billion in financing through 2026. Through this partnership, the World Bank and the Islamic Development Bank are joining forces to support better management of water, energy, and food resources in the face of ongoing threats from climate change and fragility; empower women and young people with skills to grow in jobs and fully participate in the digital transition; and drive greater regional and cross border trade and cooperation.
(Writing by Bindu Rai, editing by Seban Scaria)
