Shanghai Electric has signed a landmark agreement with Abu Dhabi-based Masdar to co-develop the 2-gigawatt Sadawi solar project in Saudi Arabia.
The deal marks the Chinese energy giant’s largest solar EPC undertaking to date and a major step in expanding its renewable energy presence in the Middle East.
Announced on Tuesday, the partnership is part of a broader push by Shanghai Electric to strengthen its position across the MENA region, with a parallel deal also inked with Oman’s Mawarid Holding to advance wind energy development in the Sultanate.
The Sadawi photovoltaic (PV) project will be spread over 40 square kilometres in the Saudi desert and is expected to generate over 6 billion kilowatt-hours annually—enough to supply electricity to 700,000 households.
The project will also reduce carbon emissions by an estimated 3 million tonnes per year, contributing to Saudi Arabia’s Vision 2030 plan to diversify its economy and reduce fossil fuel reliance.
“This is a significant milestone for Shanghai Electric as we establish a benchmark project in the Middle East’s green energy market,” said Wu Lei, Chairman of Shanghai Electric. “Our collaboration with Masdar exemplifies our commitment to supporting regional energy diversification through cutting-edge technology and local integration.”
Masdar CEO Mohamed Jameel Al Ramahi described the deal as a crucial moment in global energy cooperation. “We attach great importance to this partnership and look forward to deepening collaboration in photovoltaics, wind power, and energy storage,” he said.
Beyond the Saudi project, Shanghai Electric has also entered into a comprehensive wind energy partnership with Oman’s Mawarid Group.
The agreement includes the supply of wind turbines, technology transfer, and the design of a localized manufacturing facility aimed at boosting Oman’s domestic capabilities and promoting long-term economic growth.
Omani Minister of Energy and Minerals, Salim Al Aufi, welcomed the move, praising Shanghai Electric’s innovation in wind power. He said the partnership aligns closely with Oman Vision 2040 and the country’s Green Hydrogen Strategy.
Shanghai Electric’s Wu noted that the Oman deal creates a platform to integrate advanced technologies with local resource potential, enabling the rollout of additional clean energy projects across the region. “Through localized supply chains and knowledge-sharing, we aim to accelerate the implementation of high-quality renewables infrastructure in Oman and beyond,” he said.
The agreements signal a broader push by Chinese firms to deepen ties with Gulf countries in the renewable energy sector as both sides seek to diversify their energy portfolios and reduce reliance on fossil fuels. For Shanghai Electric, they mark a strategic expansion of its global renewables business, underpinned by technology exports, joint manufacturing, and capacity building.
Analysts see the dual deals as strengthening Shanghai Electric’s presence in one of the world’s most rapidly growing clean energy markets, where state-backed firms are seeking trusted international partners with strong technical track records.
The partnerships also dovetail with China’s Belt and Road Initiative, reinforcing economic and infrastructure cooperation between Beijing and key Middle Eastern economies.
