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JEDDAH: ������Ƶ’s power sector is set to receive a significant boost following the launch of a new joint venture aimed at localizing the production of high-voltage porcelain insulators, a key component in the Kingdom’s push to strengthen domestic manufacturing and reduce reliance on imports.

The agreement, signed under the patronage of the Ministry of Energy, brings together China’s Dalian Insulators Group, Power Union Co. — a subsidiary of Al-Ojaimi Industrial Group — and the Saudi firm Greengrid.

The consortium will establish a new facility within the Kingdom to produce high-voltage and extra-high-voltage suspension porcelain insulators used in electricity transmission and distribution networks.

The deal was formalized by Salem Mohammed Al-Ojaimi, CEO of Al-Ojaimi Industrial Group, and Chen Junrong, chairman and general manager of Dalian Insulators Group.

The initiative aligns closely with ������Ƶ’s economic diversification plan that emphasizes local industry development, reduced import dependency, and private sector engagement. The venture is expected to reinforce local energy supply chains, reduce operational costs, and generate employment opportunities within the power sector.

In a statement on X, the Ministry of Energy said the agreement seeks to “enhance local manufacturing capabilities in the conventional power sector to achieve the goal of localizing energy sector components by 2030.”

The initiative is part of Nuwatin — Arabic for “We Localize” — a flagship program under the Energy Localization initiative, unveiled at the Energy Localization Forum in Riyadh last October. It aims to guide energy companies toward national localization targets, including expanding industrial capacity, increasing GDP contribution, boosting exports, and improving the trade balance.

Porcelain insulators are vital to the reliability and safety of high-voltage transmission lines, providing both mechanical and electrical stability. Local production is expected to enhance grid resilience, reduce long-term infrastructure costs, and accelerate the development of a self-reliant domestic energy industry.

Established in 1915, Dalian Insulators Group is a leading Chinese manufacturer of high-voltage insulators and has been publicly listed on the Shenzhen Stock Exchange since 2011. The company has supplied more than eight million porcelain insulators to major transmission projects globally, including China’s 1,000kV UHV AC and 800kV DC lines.

As ������Ƶ continues its transition to a more diversified and resilient energy economy, this joint venture represents a strategic step forward in strengthening industrial cooperation and advancing energy sector localization.

RIYADH: Kuwait’s Warba Bank and Gulf Bank have entered discussions to explore a potential merger as part of a strategy to enhance long-term growth and competitiveness in the local Islamic banking sector. 

The two lenders announced the move in separate disclosures to Boursa Kuwait on May 26, prompting a temporary one-hour suspension of trading in both banks’ shares in line with capital markets regulations.  

A tie-up between the two would mark one of the most significant consolidations in Kuwait’s banking industry in recent years, as lenders in the region increasingly pursue mergers to achieve scale, drive efficiency, and adapt to evolving regulatory and economic conditions.  

In a statement to Boursa Kuwait, Warba Bank said: “The potential merger provides a promising strategic opportunity for growth and expansion for the two banks, leveraging their synergies and capabilities, as well as enhancing competitiveness in the local Islamic banking sector.”  

It added that the move comes in light of current internal and external challenges posed by local and global economic conditions, to maximize value for shareholders and investors. 

As part of the merger process, both institutions will undertake a preliminary feasibility study and begin due diligence to assess the integration. The aim is to form a single banking entity compliant with Islamic Shariah principles. 

The banks noted that the Central Bank of Kuwait had been informed of the discussions on May 25. 

In its own bourse filing, Gulf Bank stated that its chairman received a letter from Warba Bank — one of its major shareholders — requesting the bank to consider the feasibility of a potential merger between the two institutions to create a unified entity. 

“Hence, the proposal was discussed taking into consideration the bank’s efforts to explore new approaches and prospects to achieve growth and prosperity, which includes the analysis of all opportunities and means of collaboration that would lead to the realization of our goals in terms of sustainable growth and added value for the bank, customers, and investors alike,” the Gulf Bank stated in the statement. 

The merger talks come amid a challenging global economic landscape marked by rising trade tensions and market volatility. In April, S&P Global Ratings said that banks across the Gulf Cooperation Council remain well-positioned to weather external shocks. 

In its report titled “GCC banks can cope with the fallout from intensifying trade tensions,” the agency pointed to the region’s robust financial buffers as protection against evolving global risks. 

“GCC banks appear to be in a good position to withstand these threats,” the report stated at that time, citing “robust liquidity levels, solid profitability, and healthy capitalization” as the sector’s core strengths.  

While the direct impact of trade tensions on GCC economies is expected to remain limited due to minimal export exposure to the US, S&P warned of potential indirect effects. A prolonged downturn in oil prices, for instance, could dampen fiscal spending and sentiment. 

The ratings agency has revised its average Brent oil price assumption for 2025 to $65 per barrel.