RIYADH: Saudi utility giant ACWA Power has inaugurated its first overseas Innovation Center in Shanghai to advance research in renewables, energy storage, and desalination, reinforcing its expansion in China’s green energy sector. 

Located in the Pudong New Area, the first phase of the project was developed with a budget of $2.8 million and includes a research and development facility as well as a green energy laboratory, the company said in a statement. 

ACWA Power marked its entry into China in December by securing over 1 gigawatt of renewable energy projects. In January, the Tadawul-listed firm signed two agreements worth $312 million in China’s renewable energy sector. These deals include a 132-megawatt solar photovoltaic portfolio in Guangdong province and a 200-megawatt wind energy project. 

By 2030, ACWA Power aims to have invested up to $30 billion in China, in line with its broader strategy to triple its global assets under management to about $250 billion. 

“The launch of our Innovation Center in Shanghai is a testament to our commitment to global collaboration and technological advancement,” said Saleh Khabti, president of China, ACWA Power. 

During the opening ceremony, the company also signed two memorandums of understanding with Gulf Renewables Laboratory and Shanghai Jiao Tong University. The company stated that these partnerships would equip the Innovation Center with the talent and technical expertise needed to drive groundbreaking projects and tackle industry challenges. 

“Through partnerships with leading organizations, we aim to accelerate the development and deployment of sustainable energy and water solutions, not just in China, but across our global network,” added Khabti. 

ACWA Power emphasized that the Innovation Center would foster a dynamic ecosystem, bringing together government entities, state-owned enterprises, and startups, as well as original equipment manufacturers, universities, research institutions, and certification authorities. 

The center is also expected to play a key role in advancing the environmental goals of both Saudi Arabia and China, supporting the transition to a greener economy and promoting sustainable growth. 

“Innovation is the driving force behind any organization’s success, especially in the industry that we operate in. This state-of-the-art facility, combined with the deep expertise of our partners, will be a catalyst for innovation across ACWA Power’s entire value chain,” said Bart Boesmans, chief technology officer of the utility firm.

RIYADH: Saudi Arabia’s economy grew 1.3 percent in 2024, supported by an expansion in non-oil activities despite a decline in the oil sector, according to data from the General Authority for Statistics.

Growth accelerated in the fourth quarter of 2024, with gross domestic product expanding 4.5 percent year on year — the highest quarterly increase in two years — supported by a 4.7 percent rise in non-oil activities and a 3.4 percent uptick in oil activities. 

However, oil sector’s output declined 1.5 percent compared to the third quarter.

These figures align with GASTAT’s January real GDP projections, which estimated 4.4 percent annual growth in the fourth quarter of 2024. Flash estimates at the time indicated that the Kingdom’s non-oil activities grew 4.6 percent year on year in the three months leading up to December, reflecting ongoing economic diversification efforts.

The wholesale and retail trade, restaurants, and hotels sector led annual growth among economic activities, rising 6.4 percent, followed by financial services, insurance, and business services at 5.7 percent. 

Electricity, gas, and water activities increased 4.9 percent, while transport, storage, and communication, along with other mining and quarrying activities, grew 4.5 percent. Crude oil and natural gas activities declined 6.4 percent.

At current prices, Saudi Arabia’s GDP reached SR4.07 trillion ($1.09 trillion) in 2024, with crude oil and natural gas contributing 22.3 percent, government activities 16.2 percent, and wholesale and retail trade, restaurants, and hotels accounting for 10.3 percent. 

Manufacturing, excluding petroleum refining, made up 9.1 percent, while real estate activities comprised 6.5 percent.

In the fourth quarter, petroleum refining saw the highest growth among economic activities, surging 15.3 percent year on year, despite a 2.2 percent quarter-over-quarter decline. Electricity, gas, and water activities grew 7.4 percent annually and 2.7 percent quarterly, while other mining and quarrying activities expanded 7 percent year on year and 3.4 percent quarter on quarter.

By expenditure components, private final consumption rose 3.9 percent annually and 0.3 percent quarterly. However, gross fixed capital formation declined 2.2 percent year on year and 4.6 percent quarter over quarter, while government final consumption expenditure dropped 6.6 percent and 6.4 percent, respectively. 

Exports increased 5.2 percent annually and 6.9 percent quarterly, while imports rose 11.5 percent and 7.8 percent.

At current prices, Saudi Arabia’s GDP for the fourth quarter stood at SR1.025 trillion, with crude oil and natural gas activities contributing 19.7 percent, government activities 16.7 percent, and wholesale and retail trade, restaurants, and hotels 10.6 percent. 

Manufacturing, excluding petroleum refining, accounted for 9.2 percent.

Saudi Arabia’s economic performance underscores its ongoing diversification push, with non-oil sectors playing a key role in mitigating the impact of oil sector volatility.