On the lookout for value-adding partnerships

Saudi Arabia

Majed Sherbiny, CEO of Sherbiny, talks to The Energy Year about sourcing international partnerships to manufacture in Saudi Arabia and the company’s business expectations in the Saudi mining sector. Sherbiny manufactures machinery and equipment and provides engineering services for the oil and gas, petrochemicals, water and mining sectors.

How is Sherbiny aligning its business with Vision 2030’s localisation goals?
Sherbiny has always focused on oil and gas, petrochemicals, power and water – four key sectors in Saudi Arabia – and mining and renewables have become significant in recent years. In 2015, we established an engineering centre in Hungary to tap into a skilled workforce with expertise in oil and gas, petrochemicals, power and water. The centre was created from scratch, and today it reflects our commitment to technical excellence. Now, we are localising its products in Saudi Arabia, where we understand the market and the needs of clients.

Can you tell us more about Sherbiny’s new facility in Al Khobar and how it will impact your operations in Saudi Arabia?
The new facility is a significant milestone for Sherbiny. We aimed to set the industry standard. It was designed by renowned international architects, and it incorporates the latest energy efficiency technologies. It will be LEED Platinum certified, and we aim to operate with almost zero energy from the grid. From water and power usage to waste management, every aspect integrates cutting-edge technology.
It will provide us with increased production capacity and new capabilities such as robotics. We plan to introduce more than 12 production lines – we have three currently – and we are looking to increase our headcount. However, the facility isn’t just about operational excellence. It is also about creating an environment for our employees and an opportunity for partners and investors to be part of something significant.
The total investment has already surpassed USD 25 million. A significant portion of this came from our shareholders, but we are also working with the Saudi Industrial Development Fund and domestic banks. We are aiming to inaugurate it by Q3 2025.

How has Sherbiny incorporated international partners in its localisation programme?
We have secured license agreements. One of our key partners is MSA in the US, one of the largest manufacturers of safety products globally. We now manufacture their entire range of gas detection equipment in Saudi Arabia.
Another key partner is Federal Signal, a listed company in the US that specialises in public safety and communications products. We are their only manufacturing hub outside of the US.
These partnerships are a significant accomplishment because both companies are highly reputable and demand high manufacturing standards. Securing the license agreements was a thorough process. Our investment in technical know-how, quality and facilities made us their trusted domestic partner. Our setup closely mirrors their manufacturing facilities.

Are there plans for Sherbiny to bring more product lines to Saudi Arabia?
We are always on the lookout for new partnerships and expanding our range, and we are in final discussions with five new partners for license agreements and other collaborations. We receive numerous requests for partnerships, but we are selective. We focus on new technologies that can bring real value. We are not interested in localising obsolete technologies; our goal is to add value to the market with innovations.
We plan to continue focusing on the sectors we have expertise in – oil and gas, petrochemicals, power and water. Oil and gas represents around 50% of Saudi Arabia’s GDP, and the demand for power and water continues to increase as population and industry grow, so these are vital sectors.

What is your assessment of the competitive landscape in Saudi Arabia, and how is Sherbiny’s position evolving?
The traditional notion of competition is no longer as relevant today, as most players operate in overlapping spaces. Sometimes we are the customer and other times when we are the supplier. Almost every company in this book, or even outside it, has been our partner as a supplier or customer – and vice versa. Domestic companies need to move beyond the traditional competition mindset. If we don’t collaborate, international companies from the UAE, China, or elsewhere, will step in and take projects. Collaboration and shared effort are key to delivering better solutions than international competitors.

How do you plan to increase your participation in the mining sector?
Mining in Saudi Arabia is poised for significant growth. The country is rich in mineral resources, and only a small portion has been exploited. Over the next decades, mining will become a major contributor to GDP. We are working on offering turnkey solutions and have already formed partnerships with companies from the Czech Republic that can bring valuable expertise. We are also pursuing partnerships with Latin American companies that have extensive mining experience but are not well-represented in the Saudi market.

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