On October 13, 2026, Saudi Arabia's King Salman Energy City SPARK announced that the Dali Pal 25 land lease agreement had been officially implemented, with a lease area of 1030916 square meters, and disclosed for the first time the overall total investment plan for Saudi Arabia's intelligent manufacturing base of approximately 2.1 billion US dollars. From Cangzhou, Hebei to the Persian Gulf, this Chinese pipe company is no longer just selling steel pipes to the Middle East, but is building the entire AI black light factory in Saudi Arabia, with a first phase investment of 600 million US dollars and an annual production capacity of 300000 tons, planned to be completed and put into operation by 2028.

$2.1 billion in SPARK

The first phase of the project will invest approximately 600 million US dollars to build a seamless steel pipe intelligent manufacturing production line, with products covering oil and gas well casings, tubing, drill pipes, and hydrogen transmission pipelines, providing localized production delivery and technical services for the Middle East and African markets. Dalipal's wholly-owned subsidiary, Dalipal International Industries, will be responsible for developing the site and constructing a manufacturing platform. In November 2024, both parties signed a memorandum of understanding. On August 24, 2026, a land use agreement was signed. On October 13, 2026, SPARK officially announced a 25 year land lease agreement and disclosed a $2.1 billion overall investment plan.

Borrowing a ladder to climb up the building and obtain Amei qualification

Dalipal's rapid advancement in Saudi Arabia is attributed to its clear capital operation layout. In January 2026, Dalipal signed an agreement with the well-known local Saudi company ZUMAR to transfer 40% equity of its Saudi subsidiary, Dali Pu International, and leverage local resources to secure long-term orders and subsequent project financing from Saudi Aramco. In May 2026, Dalipal was officially approved by Saudi Aramco as an unrestricted supplier. Previously, all trial order products had passed testing and were qualified to supply a full range of products. Based on this qualification, the company has won approximately 49000 tons of product orders from Kuwait Oil Company during the same period. From the introduction of local strategic investors in Saudi Arabia in January to obtaining Saudi Aramco's unrestricted supplier qualification in May, the key capital and qualification layout were completed in 4 months. Keywords: the Belt and Road news network, energy equipment, enterprise industry, Saudi Arabia

AI black light factory put into operation in 2028

The Saudi Arabia base aims to build an AI black light factory, take the lead in applying AI industrial robot cluster, plan and deploy a digital twin driven whole process simulation optimization system, build an industrial Internet platform intelligent control brain, and automate, visualize and trace the whole process. Dalipal has signed an intelligent manufacturing strategic cooperation agreement with global industrial robot giant KUKA in April 2026, providing technical support for the construction of intelligent production lines in Saudi Arabia. The first phase of the project is designed to have an annual production capacity of 300000 tons and is planned to be completed and put into operation in 2028. From exporting products to local manufacturing, from selling pipes to building overseas factories to build a local industrial ecosystem, Dalipal's Saudi layout is undergoing a qualitative change. For domestic energy equipment companies, SPARK's disclosure of a $2.1 billion overall investment plan sends a clear signal: Saudi Arabia is building a localized manufacturing cluster for high-end energy pipes, and supporting manufacturers should follow up with Dalipal Saudi Arabia's supply chain bidding and supplier access as soon as possible to seize the opportunity of this round of Middle East equipment going global.Editor/Gao Xue