ACWA Power pursues SR7 billion capital increase to drive global expansion

In Saudi Arabia, ACWA Power is implementing a significant capital increase of SR7 billion (equivalent to $1.8 billion) aimed at enhancing its global operations. This move is aligned with the company's strategy to strengthen its presence in various sectors including energy transformation, water desalination, and green hydrogen production. Abdulhameed Al-Muhaidib, the chief financial officer of ACWA Power, has highlighted that currently, 60 percent of the company's investments are concentrated in Saudi Arabia, while the remaining 40 percent is allocated to international markets. Despite anticipations of substantial growth through 2030, the company plans to maintain its net debt around SR20 billion. The Capital Market Authority of Saudi Arabia has already approved this capital increase, and details regarding the final offering price are expected to be shared during the company’s general assembly scheduled for June 30. The progress in the capital market reflects the positive outlook on ACWA Power's expansion strategy. Through these initiatives, the company aims to facilitate a more sustainable energy future while balancing its financial health amidst growing investments and corresponding market dynamics. In the context of the broader economic landscape, Saudi Arabia continues to pursue significant growth under its Vision 2030 reforms, which aim to diversify the economy beyond oil. The investment in urban infrastructure, alongside the capital increase by ACWA Power, underscores a time of transition and economic strategy shifting towards sustainability and resilience. The increase in capital is not merely a financial maneuver but is indicative of Saudi Arabia’s ambition to be a leader in renewable energy solutions. By attracting investments into energy transition technologies, ACWA Power is positioning itself at the forefront of global efforts in energy transformation and sustainable practices, contributing positively to the Kingdom's economic aspirations while also addressing global challenges surrounding energy and water resources.