Alat, a company owned by the Public Investment Fund (PIF) of Saudi Arabia, and Carrier Global Corporation, a global leader in intelligent climate and energy solutions, have announced their commitment to build a cutting-edge manufacturing and research and development (R&D) facility in Saudi Arabia. The facility will produce advanced heating, ventilation and air conditioning (HVAC) solutions for the Kingdom and its visionary Giga projects, such as NEOM, as well as for regional and global markets.
The partnership was formalized by a Memorandum of Understanding (MoU) signed on February 20, 2024, at the Saudi Capital Market Forum 2024 in Riyadh. The MoU marks the first phase of the partnership between Alat and Carrier, which will leverage Alat’s financial strengths and Carrier’s technology and manufacturing capabilities to develop made-in-Saudi Arabia intelligent climate solutions.
The HVAC industry in the Middle East and North Africa (MENA) region is expected to grow to a US$10 billion addressable market by 2030 – and a US$334 billion market globally by 2030 – driven by secular trends including urbanization, sustainability and energy solutions, and digital transformation. The partnership between Alat and Carrier will address this growing demand and provide scale to develop innovative products, such as solutions for district cooling and heating, which could be used globally.
A Visionary Move for Both Sides
Alat, which was established on February 1, 2023, by His Royal Highness Prince Mohammed bin Salman Abdulaziz Al Saud, Crown Prince and Prime Minister, Chairman of the Board of Directors of Alat, is a company that focuses on smart buildings, smart cities, and smart infrastructure. Alat aims to create value for the Kingdom by investing in and developing solutions that integrate innovation, sustainability, and efficiency for buildings.
Amit Midha, Chief Executive Officer at Alat, said: “We are proud to partner with a global leader in intelligent climate and energy solutions, and bring to the Kingdom expertise and innovation in this field. We see Carrier as a long-term partner in our Smart Buildings line of business, which is solely focused on solutions that integrate innovation, sustainability, and efficiency for buildings. Carrier’s commitment to sustainability makes them the natural partner for Alat.”
Carrier, which is a global leader in intelligent climate and energy solutions, has a long presence in Saudi Arabia and sees significant growth opportunities in the region. Carrier offers a comprehensive portfolio of HVAC products and services, as well as digital solutions that enable customers to optimize their buildings’ performance, comfort, and health.
“Carrier has long had a presence in Saudi Arabia and we see significant growth opportunities in the region. This partnership is the start of a longer-term partnership to co-develop innovative solutions that will redefine intelligent climate and energy solutions for the Middle East and beyond,” said Carrier Chairman & CEO David Gitlin. “The Kingdom’s vision for a more energy efficient, environmentally responsible tomorrow is well aligned with Carrier’s goals and makes this partnership a winning combination. We are excited about the future and look forward to collaborating with Alat as we further build on our long presence in this important region.”
A Positive Impact for the Future
The partnership between Alat and Carrier is not only a milestone for the two organizations, but also a positive sign for the future of the global investment industry. As the world becomes more interconnected and interdependent, cross-border collaborations and exchanges are essential for enhancing mutual understanding and trust, as well as creating value and opportunities for all stakeholders.
The partnership also reflects the growing importance and potential of the Saudi and Chinese markets, which are both undergoing rapid economic and social transformations. Saudi Arabia, as the largest economy in the Middle East and North Africa region, has been pursuing a diversification and modernization agenda under its Vision 2030, which aims to reduce its dependence on oil and increase its competitiveness and attractiveness as an investment destination. China, as the second-largest economy in the world and the largest trading partner of Saudi Arabia, has been opening up its capital market and promoting its Belt and Road Initiative, which seeks to enhance connectivity and cooperation among countries along the ancient Silk Road.
The partnership between Alat and Carrier is expected to contribute to the realization of these ambitious visions, as well as to the development and prosperity of both countries and regions. The partnership will also create more than 5,000 local jobs and support the development of local talent and capabilities.
