Vice Chairman and MD’s Message

I was thrilled to join ACWA Power in 2023. From the outset, it was clear that my personal ambitions align perfectly with those of ACWA Power, and I am excited to contribute to the Company’s growth as a major global player in what we do.

I was particularly attracted by the quality of the people, epitomised by the Chairman, who have grown ACWA Power, from a start-up in 2004 to being at the forefront of the energy transition globally, leading the world in water desalination, and pioneering green hydrogen at scale. While the business may becharacterised by its physical assets and plants, our success depends fundamentally on the quality of our people.

Strategy 2.0

2023 was a record year for the Company in all aspects of the business. At that point, many companies would have looked to continue the existing momentum, but at ACWA Power we have decided to accelerate while at our best.

Since I joined, I have been working closely with the our leadership team and have headed the strategy taskforce in drafting ACWA Power’s Strategy 2.0, which has been approved by the Board of Directors. ACWA Power 2.0 is the next stage in our exciting journey towards being a global leader in energy transition.

As part of this mandate, we formulated our growth strategy to triple our assets under management by 2030 and to delegate authority across our management teams. We have updated our people and funding strategies to enable this ambitious growth target. The team at ACWA Power is confident and excited as we embark on this ambitious journey.

How we will reach our goal

To achieve our goal, our focus remains to be on people. We will be nearly tripling the size of our workforce and all of us will have to be the best version of ourselves. That entails ambition, talent, commitment, and resilience. It also requires a new organisational structure, creating a new layer of empowered, senior and engaged managers who have the authority, and responsibility, to deliver on stakeholder expectations in our operating regions. We will be hiring carefully, engaging people in our mission, and giving them unique career opportunities within our Company.

When we are at our best, we are local in every country where we operate. We are most keen to maximise localisation efforts, aiming to stimulate local economies and delegate decision-making to our local teams. This is integral to our growth strategy.

Our innovative mindset and strategic risk-taking have propelled the Company to its current position. We are committed to preserving this DNA that investors have placed their trust in, and to ensuring that our vision will be realised. ACWA Power’s reputation for ingenuity will undoubtedly endure.

Taking proactive steps to manage our supply chain, ensuring seamless access to a network that facilitates our growth, is paramount. We’re actively collaborating with key suppliers and partners to secure the availability of resources.

Stakeholder management

In addition to overseeing the alignment of expectations between the Board and Management to foster growth, a significant aspect of my role involves nurturing our outstanding and fruitful relationships with governments and their agencies, especially those with ambitious energy transition agendas.

At home, in the Kingdom, we align our strategy very closely with Saudi Vision 2030 and work closely with the Ministry of Energy, PIF, and other key stakeholders. I regard ACWA Power as a great ambassador for the Kingdom because it typifies the bold ambition and drive, the imagination and technical flair that characterises our economic and social development.

Internationally, we are recognised as a reliable partner entrusted with spearheading the energy transition agendas for governments in the regions where we operate. Uzbekistan stands as a prime illustration of our ability to cultivate Government-to-Government (G2G) and Business-to-Government (B2G) relationships to drive their renewable energy initiatives forward. We have built a very strong portfolio of largely renewable projects with a total investment cost of around USD 8.4 billionAs of 31 December 2023..

Our achievements in the Kingdom and other locations serve as a testament to our ability to deliver on our objectives as we aim to penetrate additional growth markets. I look forward to fostering these relationships with governments and various stakeholders and to honouring our existing commitments, and to capturing new opportunities.

Growth markets

Our home market continues to be our primary growth market, especially with the recent announcement of an accelerated renewable target by 2030. We are directing our local resources towards spearheading one of the world’s most ambitious renewable energy programmes.

The Republic of Uzbekistan and Central Asia have demonstrated a strong commitment to achieving their decarbonisation goals. With our proven track record in the region, we aspire to playing a pivotal role in capitalising on the opportunities in these markets and to further contributing to a sustainable future for these nations. Similarly, we will be continuing our expansion in the Middle East and Africa.

Another potential market is the People’s Republic of China, which is undergoing one of the most extensive decarbonisation initiatives globally, making it central to our growth aspirations. Since 2009, we have forged robust partnership with Chinese EPC contractors, financiers, and suppliers in many of our projects outside the People’s Republic of China. We look to nurture these relationships, along with solid G2G connections, as we look to grow our business within China, not just in the renewable space but also in water desalination and green hydrogen.

Being on the Board, working with the executive team, and being engaged in the commercial operations, gives me an opportunity to continue to link boardroom thinking and decision-making with operations on the ground. This is a very exciting time for ACWA Power as we begin our ambitious new chapter, and I am confident that we will continue to develop our team and resources to achieve our targets.