Saudi Arabia’s energy and infrastructure developer, Abunayyan Holding and U.S.-based Nextpower (formerly Nextracker), which specializes in solar tracking systems, have completed the process of the formal incorporation of their previously announced joint venture, Nextpower Arabia.

The joint venture aims at accelerating the deployment of utility-scale solar power projects across the Middle East and North Africa (MENA) region.

Nextpower Arabia will combine Abunayyan’s 75 years of experience in water and energy infrastructure in Saudi Arabia with Nextpower’s solar power capabilities.

Khalid Abunayyan, Chairman of Abunayyan Holding, said, “Partnering with Nextpower strengthens our role in advancing Saudi Arabia’s clean energy vision by localising advanced manufacturing and technologies, building local capacity development, and creating lasting value for generations to come.”

As a part of this new venture, the company will establish an advanced manufacturing facility in Jeddah to produce solar tracking systems, yield management, and control solutions for large-scale solar projects throughout the region.

The project, which is being constructed on a 42,000-square-meter area, will be operational in the second quarter of 2026, and the facility is designed to achieve a manufacturing capacity of 12 GW annually and support around 2,000 jobs, which will help the region.

Dan Shugar, founder and Chief Executive Officer at Nextpower, said, “Saudi Arabia is a strategic market for Nextpower as we expand our ability to serve customers across the Middle East. The Kingdom is making significant progress in advancing the energy transition, and we’re proud to support these monumental initiatives with proven solar technology and trusted local partnerships. Abunayyan Group’s regional expertise and alignment with our business focus make them the right partner to help deliver greater value for customers in the region.”

The partners anticipate about $88 million in funding over the next two years to build out the facility and strengthen the joint venture’s operations. This capital will facilitate the buildout of the state-of-the-art manufacturing facility and development of highly skilled technical and engineering capabilities with a track record in operational excellence.

Last month, Arabian Qudra, a subsidiary of Abunayyan Holding and a regional project developer in the power and water sector, announced an agreement with the Saudi Water Authority to develop the country’s first floating solar project.