Saudi Arabia’s $2.6 Billion Leap Towards Cleaner Energy

In the vast desert expanse of Saudi Arabia’s Eastern Province, where the sky stretches endlessly and the hum of progress never ceases, a bold new chapter in the Kingdom’s energy evolution is taking shape.

On 24 March 2025, global headlines carried the news: a $2.6 billion power plant expansion contract had been awarded to two major players in the engineering world, Técnicas Reunidas, a Spanish engineering and construction firm with over 60 years of global energy expertise, and Orascom Construction, one of Egypt’s most prominent infrastructure giants with deep roots across the Middle East and North Africa.

The project was confirmed via Reuters, but behind the official press release lies a story of strategic foresight, international collaboration, and a nation’s growing determination to balance energy security with environmental responsibility.

Engineering Tomorrow’s Energy

At its core, this is an ambitious upgrade of a 3-gigawatt combined-cycle gas-fired power plant a crucial facility that already plays a central role in meeting Saudi Arabia’s rising energy demands. However, the true innovation lies in what the expansion represents.

This isn’t just an infrastructure upgrade it is a forward-thinking investment in the Kingdom’s energy future. The new design includes carbon capture readiness, a technical feature that allows future integration of emission-reducing technologies. Additionally, the project includes a 380-kilovolt high-voltage substation, enabling efficient transmission of power to homes, industries, and businesses throughout the region.

Such projects do more than generate electricity. They create opportunities for employment, and knowledge transfer, for local industries. While specific job figures are yet to be disclosed, industry precedents suggest that thousands of direct and indirect jobs will be created across engineering, procurement, construction, logistics, and facility management. Many of these opportunities will benefit Saudi nationals and support the growth of a skilled domestic workforce.

A Long-Term Vision for Sustainability

This project aligns closely with Saudi Arabia’s Vision 2030, the Kingdom’s national strategy to diversify its economy beyond oil and embrace new sectors, innovation, and sustainability.

By expanding gas-based power and preparing for carbon capture, Saudi Arabia is bridging the present with the future. It recognises that the world is moving towards low-carbon energy systems, but also that such transitions must be practical, secure, and gradual.

This project reflects a delicate balance: expanding capacity to support industrial growth while preparing to reduce emissions and invest in cleaner alternatives over time.

Global Collaboration, Local Impact

The partnership behind this project is a story of international collaboration with regional impact.

Técnicas Reunidas, based in Madrid, brings with it a portfolio of over 1,000 major industrial projects in energy and chemicals, delivered across more than 60 countries. Known for handling complex and large-scale infrastructure under demanding conditions, the firm will be leading the engineering, procurement, and construction work. 

Orascom Construction, a listed contractor active in over 20 countries, has been instrumental in developing large-scale power, water, and transport projects across the MENA region. The company’s regional knowledge and operational agility make it a natural fit for a Saudi project of this scale and ambition.

Together, these two firms embody the kind of cross-border collaboration that fuels modern FDI success stories—where technical capability meets local understanding.

A Win-Win for All Stakeholders

For Saudi Arabia, this project enhances its energy security and strengthens its industrial backbone. It also reinforces its international image as a country serious about transitioning toward cleaner energy.

For Técnicas Reunidas, it is a reaffirmation of the company’s ability to deliver on strategic energy infrastructure in the Gulf a region it has operated in for decades. It also helps position the firm in the growing market for carbon capture-enabled technologies.

For Orascom, the deal reinforces its role as a regional energy leader and expands its presence in the Kingdom’s infrastructure build-out. It reflects growing Egyptian-Gulf economic ties and highlights the trust placed in regional contractors for high-value, high-tech energy projects.

At the centre of this massive investment are people engineers drawing up digital blueprints, workers assembling turbine systems under the desert sun, and logistics teams coordinating supply chains across continents.

The impact goes beyond numbers. It’s about keeping the lights on in Saudi homes, supporting future manufacturing zones, and offering young Saudis new career paths in a modernising energy sector. It’s about planting the seeds of a lower-carbon future, one power plant at a time.

This $2.6 billion project is not just about energy—it is about empowerment, collaboration, and a shared belief in building a sustainable tomorrow. Stay tuned to the project's timeline updates, and further information on the total monetary volume and potential job creation.