Active Energy Group PLC (AIM:AEG, OTCQB:ATGVF) said it has taken a first formal step into Saudi Arabia after being granted an Entrepreneur Licence by the Kingdom’s Ministry of Investment, giving the AIM-listed group a legal base to operate and expand in one of the world’s fastest-growing energy markets.
The licence allows Active Energy to establish operations in Saudi Arabia with full regulatory approval and 100% foreign ownership in eligible sectors.
It is designed as a lighter and cheaper alternative to traditional foreign investment licences, aimed at early-stage and innovative businesses.
For Active Energy, which focuses on renewable energy and digital infrastructure, the move is part of a broader strategy to build a presence across the Middle East.
Saudi Arabia is central to that plan as it invests heavily in energy transition and technology under its Vision 2030 economic programme.
The company said one of the main attractions is access to ultra-low-cost power. Electricity prices are a crucial factor for energy-hungry activities such as data centres, artificial intelligence computing and advanced clean energy projects.
Cheaper power can significantly improve the economics of these projects and make them easier to scale over time.
The licence also opens the door to local and regional sources of funding.
These include institutional investors, sovereign-linked capital and Sharia-compliant financing, which follows Islamic law and avoids interest-based lending.
Active Energy said this would support joint ventures and partnerships with Saudi and international groups looking for a compliant local platform.
Paul Elliott, chief executive, said the licence was a “major step forward” and validated the group’s Middle East strategy.
“Saudi Arabia is central to our long-term growth plans, and this licence provides the regulatory platform we need to execute, scale and partner effectively within the Kingdom,” he said.
“We believe this licence materially enhances our ability to deliver sustainable growth and long-term value for shareholders.”
Beyond funding and power costs, the Entrepreneur Licence offers lower upfront set-up costs and access to business support, visas and residency options as operations expand.
Active Energy said this gives it a practical base from which to pursue opportunities in clean energy, digital infrastructure and related technologies as Saudi Arabia’s economy continues to open up.