ACWA Power’s net profit zooms 103% to $411m in 2022 

Saudi Arabia’s utility service provider ACWA Power has reported a net profit of SR1.5 billion. (Supplied)
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Updated 02 March 2023
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ACWA Power’s net profit zooms 103% to $411m in 2022 

RIYADH: Saudi Arabia’s utility service provider ACWA Power has reported a net profit of SR1.5 billion ($411 million) in 2022, up 103 percent from the previous year, according to a bourse filing. 

In 2021, the Public Investment Fund-backed firm reported a net profit of SR758.8 million. 

The bourse filing further noted that the company’s fourth-quarter net profit after zakat and tax surged 94 percent to SR656.6 million, compared to SR338.85 million in the prior-year period. 

Compared to the third quarter of 2022, ACWA Power’s net profit climbed 92.2 percent from SR341.70 million. 

The filing also showed that earnings per share touched SR2.11 in 2022 versus SR1.04 in the year-earlier period. 

In 2022, the utility firm’s operating profit rose to SR2.61 billion, up 13.5 percent compared to 2021. 

According to the bourse statement, the firm’s financial results in 2022 were backed by higher operating income before impairment and other expenses. 

Last year, the total comprehensive income of ACWA Power stood at SR5.7 billion, up 189 percent compared to the previous year. 

The profits were also driven by higher contributions from development and construction management services for the projects which achieved financial close last year, adequately supported by lower project development costs. 

Expanding its global footprint 

Meanwhile, ACWA Power last month signed an agreement for a new giga-scale green hydrogen project to expand its Indonesian portfolio.   

According to a statement, the water and power utility major entered into a memorandum of understanding with the chemical manufacturing firm Pupuk Indonesia to develop the project. 

In January, the company signed an agreement to develop Uzbekistan’s first green hydrogen and ammonia facilities. 

The agreement was signed with Uzbekistan’s Ministry of Energy and Uzkimyosanoat, a state-owned chemicals company, with a targeted commissioning date of December 2024. 

The project would be connected to an existing ammonia plant in Chirchiq, 45 kilometers from the country’s capital Tashkent. It is expected to generate 3,000 tons of green hydrogen a year. 

Earlier in October 2022, during an exclusive interview with Arab News, ACWA Power CEO Paddy Padmanathan revealed that the company intends to invest $10 billion in renewables, including green hydrogen, in South Africa over the next five years. 

He added that ACWA Power can increase the pace of investments to $25 billion by 2030 if the South African government facilitates the opportunity. 


Saudi Arabia surpasses $400bn in investment volume, minister announces

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Saudi Arabia surpasses $400bn in investment volume, minister announces

RIYADH: Saudi Arabia’s total investment volume surpassed SR1.5 trillion ($400 billion) for the first time in 2025, the Kingdom’s minister of investment has announced.

Speaking at the Government Press Conference in Riyadh, Khalid Al-Falih highlighted unprecedented growth across the financial landscape, with foreign capital inflows playing a central role.

The Kingdom is aiming to attract $100 billion in annual foreign direct investment by the end of the decade as part of its Vision 2030 economic diversification plan. 

“We expect foreign investment flows into Saudi Arabia in 2025 to range between SR140 billion and SR150 billion,” Al-Falih said, noting that this projection represents a five-fold increase from the SR28 billion recorded in 2017, a sign of rising global investor confidence.

The surge in international business activity is further reflected in the number of foreign companies operating in the Kingdom. Al-Falih revealed that licensed foreign firms have reached 62,000, a dramatic increase from just 6,000 in 2016.

Furthermore, the nation has attracted more than 700 regional headquarters for leading global corporations, solidifying its position as a premier commercial hub for the Middle East and North Africa.

The investment boom is creating substantial opportunities for Saudis. The minister highlighted that 800,000 new jobs have been created in the Saudi economy, with private sector wages rising by 45 percent. He also noted that women’s labor force participation has doubled, marking a significant societal shift.

The domestic entrepreneurial spirit remains robust, with the number of active commercial registrations held by Saudi investors reaching 1.86 million by the end of 2025.

Al-Falih also stated that 500,000 Saudis have been employed out of 1.5 million workers in foreign companies, and that three major companies have begun automobile manufacturing in the Kingdom.

The economic outcomes cited by Al-Falih are direct results of the nation’s Vision 2030 reform agenda. This transformation is being accelerated by the systematic opening of Saudi Arabia’s capital markets. 

On Feb. 1, the Capital Market Authority will allow all foreign investors direct access to the Main Market, eliminating previous qualification barriers. This follows a period of rapid growth in international participation, with foreign ownership exceeding SR590 billion by the third quarter of 2025. 

On this, the minister said that Tadawul is “prideworthy,” noting that it’s now one of the biggest 10 stock markets worldwide. He stated that the old restrictions on foreign investors were found to limit market access for all international investors. He confirmed that the new rules, which will be announced soon, are designed to be “balanced.”