MVM OVIT Zrt. and Arabian International Company (AIC) of Saudi Arabia has signed a contract establishing a joint venture in Budapest on 13 March 2017. The new joint venture is incorporated with its head office in Jeddah, Saudi Arabia. The main areas of its activities will be high voltage network construction and power plant boiler construction and overhaul as well as participation in related projects and renewable energy projects.
In accordance with the strategy of the MVM Group, MVM OVIT Zrt. wishes to strengthen its presence in export markets and to sell its existing know-how and skills. To this end, after major preparatory work, OVIT and its Saudi Arabian partner, Arabian International Company, signed a contract for establishing a joint venture on 13 March. The company established by the two founders is incorporated with its head office in Jeddah, Saudi Arabia, and subsequently it can begin its activities in the energy market of the Kingdom. The main areas of its activities are high voltage network construction and power plant boiler construction and overhaul. In addition, it will also participate in related projects and renewable energy projects.
The company is established now because due to demographic and economic growth energy consumption increases 4% to 5% per year in Saudi Arabia, so the Kingdom has to carry out energy projects worth SAR 500 billion (USD 133.3 billion) in the next 10 years in order to meet the resulting energy demand. The establishment of the company will enable the parties to enter local tenders and, if their bids are successful, to carry out projects under a general contractor scheme.
The new joint venture will also play an important role in the cooperation between the MVM Group and the Saudi Arabian national electricity company, Saudi Electricity Company (SEC), which, at the request of the Saudi Arabian partner, mainly aims at the transfer of the professional culture and know-how of the Hungarian party.
The contract for establishing the joint venture was signed on behalf of MVM OVIT Zrt. by Dr János Zsuga, member of the Board of Directors, and Dr Norbert Lajos Korom, CEO of the company, while on behalf of Arabian International Company by Wasim A. Attieh, its Owner and Chairman.