SAUDI ARABIA —Al-Jouf Agricultural Development Company has approved project-related offers valued at SAR 398.43 million, to establish electricity infrastructure for its facilities at Busaita Center in the Al-Jouf Region of Saudi Arabia. The Board of Directors authorised the offers through a circular resolution dated 11 November 2026, following technical and financial assessments of the submitted bids and consideration of recommendations from the relevant committees.
The approved scope covers four principal work packages: construction of the internal electrical network, installation of external electricity interconnection cables, engineering supervision and contract management for the internal network, and equivalent supervision and management services for the external interconnection works. The development forms part of the company's electricity connection initiative under Saudi Arabia's Liquid Fuel Displacement Program.
The initiative is intended to connect the company's agricultural facilities to the electricity network, supporting the transition away from liquid-fuel-based energy supply. The infrastructure is expected to provide the facilities with an alternative power connection while establishing the electrical capacity and supporting systems required for their operations. The approved offer value is below the previously announced project budget of SAR 500 million, although the company has not disclosed a final project cost or confirmed whether the difference represents savings against the original estimate.
The project has not yet reached final implementation approval, as the company continues evaluating and negotiating the remaining phase. Construction is expected to commence before the end of the fourth quarter of 2026, with an anticipated execution period of 13 months from the commencement date. The company stated that the financial impact will be disclosed upon project completion and that further material developments will be announced as they arise.
The development has implications for agricultural infrastructure and energy supply in northwestern Saudi Arabia. Electrical network expansion can reduce dependence on liquid fuels at agricultural operating sites and increase integration with the regional power system. The procurement also creates opportunities for electrical infrastructure contractors, cable suppliers, engineering consultants and project management service providers involved in utility connection works.
Al-Jouf Agricultural Development Company is a Saudi agricultural enterprise engaged in agricultural production and related development activities. The electricity connection initiative represents an infrastructure investment supporting its operational facilities, while aligning the company's energy supply arrangements with the broader national programme to displace liquid fuels with alternative electricity sources.
