Manufacturing of diesel generators

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This opportunity entails developing the value chain for the production of diesel generators to serve KSA and the broader GCC region.

Overall demand for diesel generators in Saudi Arabia is estimated at 11,700 units in 2017 and is forecasted to grow at an annual growth rate of 8% to reach 17,600 units by 2022. Small diesel generators are expected to be the largest segment in terms of number of units in demand.

Beyond the KSA market, investors in Saudi have the opportunity to tap into the large regional market in the GCC with expected increase in demand from 9,600 units in 2017 to 14,400 units by 2022.

The main focus of this opportunity is on components and sub-assembly and final assembly of diesel generators.

  • Components and sub-assembly: develop manufacturing facilities for heat exchangers, alternators and engine components
  • Components and sub-assembly: establish facilities to manufacture diesel engine, alternator and heat exchange sub-assemblies
  • Final assembly: establish facilities for final assembly of diesel generators, made to final customer specifications
  • Final assembly: establish QA/QC testing facilities for generators

However, additional opportunities for localization exist across the value chain of diesel generators production. These opportunities include:

  • Input materials: manufacture steel alloys, coppers to meet specifications needed for diesel generator components
  • Installation and after-sale services: provide after-sales support including maintenance, remedial work, and spares and parts manufacturing

Opportunity Details

Industrial and Manufacturing
Industrial Equipment & Spare Parts
To be determined by the investor
To be assessed by investor (cost drivers and other financial figures to be shared upon request)
Investment size
Open to starting the project as soon as possible

Investment Model

Model: Opportunity to consider different operating models:
  • Opportunity to consider different operating models:
  • Joint venture with local player

Contact Our Manufacturing of diesel generators Expert

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