Nextpower Arabia Joint Venture To Boost Solar Manufacturing And Capacity In Saudi Arabia

Nextpower and Abunayyan Holding have completed the formation of their new joint venture called Nextpower Arabia, headquartered in Riyadh, Saudi Arabia. The partnership aims to speed up the growth of utility-scale solar power projects across the Middle East and North Africa. Both companies say the joint venture will support national and regional renewable energy goals as countries in the region work toward Net Zero targets.

Along with the joint venture announcement, the partners revealed plans for a new advanced manufacturing facility in Jeddah. This factory will produce solar tracking systems, yield management tools, and control solutions for large solar installations across the region. Once fully operational, the facility is expected to support a manufacturing capacity of up to 12 GW per year. It will contribute to job creation by generating as many as 2,000 jobs and helping grow engineering and technical skills in Saudi Arabia. The site is currently under construction on a 42,000-square-meter plot and is scheduled to open in the second quarter of 2026. When operating at full scale, it will employ about 600 people and manufacture the full range of Nextpower’s solar tracking technologies.

Khalid Abunayyan, Chairman of Abunayyan Holding, said the joint venture aligns with the company’s mission to make energy and water supply more accessible, sustainable, and affordable. He added that working with Nextpower will help support Saudi Arabia’s long-term clean energy plans by strengthening local manufacturing and building long-term value for future generations. He emphasized that advanced technologies and local capacity building will play a key role in Saudi Arabia’s economic and social development.

Nextpower founder and CEO Dan Shugar said Saudi Arabia is an important market as the company expands its services across the Middle East. He noted that the Kingdom is moving quickly in its energy transition efforts and that the partnership with Abunayyan Holding will allow it to deliver reliable solar technology more efficiently. He highlighted Abunayyan’s strong regional presence and deep industry experience as important strengths for the venture.

Turki Al-Amri, CEO of Abunayyan Holding and CEO of Nextpower Arabia, explained that the manufacturing facility represents the first phase of a plan to build and localize the solar supply chain across the region. He said the joint venture will source materials such as Saudi-produced steel through strategic partnerships, supporting economic diversification and industrial development under Saudi Vision 2030. The facility aims to increase efficiency, reduce costs, and ensure stronger collaboration for clean energy expansion.

The partnership combines Abunayyan Holding’s 75 years of experience in developing and operating essential water and energy infrastructure with Nextpower’s global leadership in solar tracking technologies. Nextpower has more than 150 GW of tracking systems installed or under delivery in over 45 countries. This includes more than 6 GW of projects in the Middle East and Africa, such as the Mohammed Bin Rashid Al Maktoum Solar Park Phase V in the UAE and major projects in Saudi Arabia. These include the 405 MWp Sakaka Solar Park, the 1,170 MWp Al Kahfah project, the 449 MWp Tabarjal project, and 450 MWp of the Sudair project.

Nextpower Arabia will support Saudi Arabia’s National Renewable Energy Program, which aims to increase the share of renewables by 2030. Local manufacturing is expected to help reduce solar project costs and support export growth from the Kingdom. According to MESIA’s 2025 Solar Outlook Report, solar capacity in the region could exceed 180 GW by 2030 due to cost reductions and improved production efficiency. To support this expansion, both partners plan to invest around $88 million over the next two years through equity and debt financing to build the facility and develop local technical expertise.