China’s ZTT Group is set to invest an estimated $100m (712.11m yuan) to establish a submarine and terrestrial cables manufacturing facility at Saudi Arabia’s Ras Al-Khair Port.
It has signed a land lease agreement with the Saudi Ports Authority (Mawani) to set up the 80,000m² facility.
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According to the Saudi Press Agency, the planned facility will have the annual capacity to produce 500km of submarine cables, 500km of terrestrial cables and 12,500km of fibre-optic cables.
These cables will be essential for supporting large-scale renewable energy installations, bolstering digital connectivity networks, and advancing offshore infrastructure projects throughout the country and beyond, reported GCC Business News.
The agreement was signed by Sulaiman bin Khalid Al-Mazrou, president of the Saudi Ports Authority, and Xu Jianlin, CEO of ZTT Group, during the ninth Future Investment Initiative conference held last week in Riyadh, Saudi Arabia.
This partnership is seen as essential for building Saudi Arabia’s submarine and terrestrial cable sector, directly advancing the National Transport and Logistics Strategy’s aim of making the kingdom a global logistics hub, reported Maaal.com.
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By GlobalDataAl-Mazrou described the project as a strategic move that would reinforce Ras Al-Khair Port’s role as an industrial centre in the country.
He also stated that the collaboration would help localise cable manufacturing and attract technologies that support Saudi Arabia’s telecommunications industry.
Equipped for both general and bulk cargo operations, Ras Al-Khair Port covers 23km² and features 14 berths, with a cargo handling capacity of around 35 million tonnes.
ZTT Group manufactures telecommunications equipment, submarine cables and power solutions, and has production facilities in Germany, Turkey, Indonesia and Morocco.
The company is looking to expand its operations in the Gulf Cooperation Council (GCC) countries.
This initiative is part of Mawani’s broader strategy to facilitate strategic alliances through new projects at national ports, aligning with the country’s Vision 2030 initiative, as well as National Transport and Logistics Strategy objectives.
According to Economy Middle East, Saudi Arabia’s maritime industry – backed by around 3,400km of coastline on the Red Sea and Arabian Gulf – occupies a strategically important position linking East and West.
Investment in the sector has topped SR25bn (roughly $6.66bn), fuelled by partnerships between Mawani and domestic and international stakeholders.
