Acwa, the Saudi Arabia-based energy and water desalination company, plans to invest at least $30 billion over the next five years in China, targeting the country’s booming renewables, green hydrogen, and desalination markets.
Saleh Khabti, President of Acwa China, emphasized that the company sees China as a long-term growth engine, noting the country’s track record of sustaining economic expansion and implementing large-scale social development even amid global uncertainties.
China’s green transition and carbon targets—peaking emissions before 2030 and achieving carbon neutrality by 2060—create clear, long-term investment opportunities for overseas energy companies. Coupled with supportive policies for foreign investors, China is emerging as a strategic hub for renewable energy, innovative technologies, and high-standard infrastructure projects.
“China has demonstrated its ability to navigate challenges while sustaining growth, giving long-term investors strong confidence,” Khabti said at the China Development Forum 2026 in Beijing.
The country’s policy environment and industrial strength provide foreign firms not only a domestic market but also a platform for global operational efficiency, leveraging Chinese innovation, manufacturing capabilities, and supply chains.
1. Multi-Sector Investment Roadmap
Acwa is scaling up across renewable power, water desalination, and green hydrogen, with an eye on wind, solar, energy storage, offshore wind, and emerging electricity trading models. Green hydrogen remains a top priority, with plans for at least one to two major projects in partnership with Chinese enterprises and government bodies.
2. Leveraging China’s Industrial and Innovation Ecosystem
Khabti highlighted that over 99% of Acwa’s power sector equipment is sourced from China, reflecting the global competitiveness of its manufacturing base and engineering expertise. Chinese suppliers not only reduce costs but also enhance operational reliability and enable export-ready solutions for overseas projects.
3. Collaborative Partnership Models
Acwa is exploring cross-border collaboration with local firms, combining its international technology and management expertise with Chinese industrial scale and execution speed. This mirrors a broader trend among global energy companies seeking joint ventures, co-development projects, and supply chain integration in China.
4. Alignment with National Priorities
The company’s investments closely align with the 15th Five-Year Plan (2026–30), which emphasizes:
- Green and low-carbon growth
- Industrial upgrading
- Development of emerging industries, including hydrogen as a new driver of economic growth
This ensures that Acwa’s projects benefit from policy stability, preferential support measures, and long-term market clarity, reducing regulatory risk for overseas investors.
5. Implications for Foreign Investors and Cross-Border Energy Companies
- Strategic entry point: China’s expanding renewable and hydrogen sectors offer first-mover advantages.
- Supply chain efficiency: Access to advanced Chinese manufacturing reduces capital intensity and accelerates project timelines.
- Innovation leverage: Firms can co-develop solutions using China’s R&D capabilities, smart grids, and digital infrastructure.
- Market diversification: Participation in China allows global companies to hedge against geopolitical and energy market uncertainties while tapping into a rapidly growing domestic consumption base.
Khabti summed up Acwa’s long-term view: “We deeply believe in China’s growth and innovation potential. By investing here, we not only expand our footprint domestically but also enhance our global capabilities in renewables, water desalination, and green hydrogen.”