JEDDAH, Saudi Arabia, May 23 (UPI) -- General Electric Co. announced Monday it has formed a $1.4 billion partnership with Saudi Arabia.
GE plans to build a $400 million manufacturing plant for the energy and marine sector that is expected to create 2,000 new jobs in the kingdom. It will work with state-owned Aramco in the project.
GE also plans to invest $1 billion in water and aviation by 2017 in a deal with Saudi Arabia Basic Industries Corporation, which is the country's biggest petrochemical company, as well as Saudi Arabian Industrial Investments Co. and Aramco.
GE said it will consider another $2 billion in those sectors after 2017.
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The American company has 2,000 workers in the country at three offices and seven plants in aviation, healthcare, oil and gas, power, and transportation businesses. The company opened the world's largest gas turbine service facility in Dammam in 2011.
"The joint investment and collaboration will be a game changer for the kingdom's industrial and digital sectors," said GE Chief Executive Jeffrey Immelt, who met with ministers and business leaders in the coastal city of Jeddah on Monday.
Saudi Arabia is looking for more international investors.
"This strategic alliance with GE is an ideal fit to deliver on these goals, and together we will contribute to the long-term economic competitiveness and diversified growth of the Saudi economy," said Abdullatif al-Othman, chairman of Saudi Arabian Industrial Investments Co.
These moves comes as Saudi Arabia seeks to reduce its dependence on oil as part of its Vision 2030 plans.
"The localized manufacturing will also help build a local talent pool of Saudi professionals and develop more local suppliers and SMEs [medium-sized enterprise]," said Zaher Ibrahim, CEO, GE Oil & Gas Saudi Arabia.
