‎Alfanar sees strong Saudi power demand growth driven by AI

‎<p><img src="https://argaamplus.s3.amazonaws.com/5e8f37b3-8e76-4f01-9fee-45d0322511ec.png" ></p> <p class="ckeCaption" >Pascal Hoerter, CEO of Alfanar Electric</p> <hr> <p >Alfanar Group expects strong growth in Saudi Arabia’s electricity demand, driven by data centers and artificial intelligence (AI) technologies, with its electrical manufacturing business poised to expand through 2030, its CEO said.</p> <p ></p> <p >Pascal Hoerter, CEO of Alfanar Electric, the group’s electrical manufacturing division, told <span ><strong>Argaam </strong></span>on the sidelines of the 25th WPC Energy Congress in Riyadh that the outlook for 2027 was promising.</p> <p ></p> <p >However, demand for electrical solutions in Saudi Arabia’s housing sector has declined over the past three to four years, partly due to higher interest rates that have reduced individuals’ ability to buy homes, Hoerter said.</p> <p ></p> <p >The company is developing safe and competitive electrical solutions for the residential market, while its partnership with the National Housing Co. (<a href="https://www.argaam.com/en/tadawul/tasi/nhc" target="_blank">NHC</a>) is expected to support growth in the sector, he added.</p> <p ></p> <p >Local manufacturing capabilities have given Alfanar greater flexibility to respond to changing market conditions and supply chain disruptions, while reducing its reliance on imports, Hoerter said.</p> <p ></p> <p >He stressed the importance of owning technologies and intellectual property in Saudi Arabia, enabling the company to manufacture products locally and export them to international markets.</p> <p ></p> <p >Local content programs have supported Alfanar’s growth over the past decade, strengthening its manufacturing capabilities and helping it move from systems integration to manufacturing and technology exports, he said.</p> <p ></p> <p >Alfanar Group allocates between 7% and 10% of its total revenue to research and development and invests millions in training and qualifying Saudi talent, Hoerter said, without disclosing the amount.</p> <p ></p> <p >In the oil and gas sector, Alfanar aims to expand its business with Saudi Aramco to include projects and investments outside the kingdom, he added.</p>

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Argaam - Main News · Trade Publication

Published

15th October 2026

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argaam.com

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