Spotlight: Scaling Renewable Energy Investments in Saudi Arabia Through Global Partnerships

Get the gist of recent renewable energy investments, spanning green hydrogen and electricity production.

Saudi Arabia aims to source at least 50% of its power from renewable energy and expand capacity to 130 gigawatts by the decade's end.

That ambitious target translates to billions in infrastructure investment, allowing for a much bigger scope for international businesses to come in, invest and expand their operations in this fast-growing market.

Several energy-focused investment deals were struck this week. These deals, spanning wind power and drilling contracts, mark growing investor appetite to set up a business in Saudi Arabia as the latter makes steady progress toward a future rooted in sustainable industries.

Ruya Partners Invests $55 Million in Hygiene Fiber Plant in Yanbu

Ruya Partners, an Abu Dhabi Global Market-based private credit fund manager, has announced the successful closing of a $55 million (SAR 206 million) private credit investment to fund the development of an innovative hygiene nonwoven fiber production plant in Yanbu.

What does the deal involve?

• The Abu Dhabi-based fund manager will support the construction of a state-of-the-art staple facility in Yanbu, creating complete vertical integration for the Kingdom's nonwoven materials sector.
• Raw materials from this facility will supply United Saudi Company (USC), Saudi Arabia's only dry-laid hygiene nonwoven manufacturer.
• Capacity starts at 30,000 metric tons, expanding to 50,000 in phase two, to meet growing regional demand.

Completed through a consortium with a leading regional financial institution, the deal represents Ruya Private Capital Fund I's fifth deployment and fourth Saudi corporate financing, strengthening the Kingdom's industrial base.

Yanbu’s industrial facility ties into Saudi Arabia’s strategy of producing 1.2 million tons of green hydrogen annually by 2030, fulfilling about 10% of global demand.

Related read: A Pathway to Clean Energy: Saudi Arabia’s Quantum Leap in Green Hydrogen Production

Saudi Power Procurement Awards $458 Million Wind Energy Contract for 700-Megawatt Project

Saudi Power Procurement Co. has signed a power purchase agreement for the 700-megawatt Yanbu Wind Power Project.

Key details about the project

• The $458 million project, awarded to a consortium of Japan's Marubeni Corp. and local company Abdulaziz Al-Ajlan Sons, will generate electricity at $0.016 (SR0.06) per kilowatt-hour.
• This wind energy project is located in the Madinah region of Saudi Arabia.
• The levelized cost of electricity (LCOE) for the project is about 1.72 cents, a price point that makes renewable energy economically competitive with traditional sources.

This project marks a significant step toward the Kingdom’s ambition to develop between 100 and 130 gigawatts of renewable energy capacity by 2030, promoting economic growth and environmental sustainability.

ACWA Power Raises $1.8 Billion to Fund Global Energy Expansion

ACWA Power's recent $1.8 billion rights issue approval demonstrates the scale of capital required for Saudi Arabia's energy transformation.

Over two years, the company secured $15.6 billion (SR58.6 billion) in project financing and committed $19 billion to Uzbekistan projects alone, 18 of them renewables-focused. Major shareholders backed 77% of the rights issue.

Beyond the Middle East, ACWA Power operates in Malaysia, Africa, and Southeast Asia. The company secured $500 million in new US agreements while maintaining an 80-person China team with a 1-gigawatt renewable pipeline.

This international presence allows the company to export Saudi energy expertise while diversifying revenue streams.

The company's ambitious financial targets include tripling managed assets to $250 billion by 2030, exceeding 175 gigawatts in power generation capacity, producing 15 million cubic meters of desalinated water daily, and generating 1 million tonnes of green hydrogen annually.

With Saudi Arabia attracting high-value investments, it has established itself as a target for the world’s most notable energy companies, including the UAE’s solar tech firm, The Yellow Door Energy. The global energy tech company has expanded into Saudi Arabia with support from AstroLabs, the Gulf’s leading business expansion platform.