Active Energy Group PLC's (AIM:AEG, OTCQB:ATGVF) chief executive talked with Proactive about the company’s decision to make Saudi Arabia its first major Middle East entry point and the strategic advantages driving that move.
Paul Elliott explained that Saudi Arabia stood out due to its combination of scale, regulatory clarity and execution speed, all of which align with the company’s strategic priorities. Elliott said the opportunity is underpinned by the Kingdom’s Vision 2030 agenda, which actively supports energy transition, digital infrastructure and innovation.
A central theme of the discussion was power costs. Elliott noted that power is often the largest expense in infrastructure and energy-related projects, particularly in the UK and Europe where costs are high and volatile. By contrast, he said access to stable, ultra-low-cost power in Saudi Arabia “transforms the economics,” improving margins and shortening payback periods for investors.
The conversation also covered funding opportunities in the region. Elliott highlighted the importance of securing approval from the Ministry of Investment for Saudi Arabia (MISA), which Active Energy Group has achieved, alongside engagement with the Research, Development and Innovation Authority (RDIA). He explained that these relationships are critical to accessing regional and Sharia-compliant capital, which is actively seeking infrastructure, energy and innovation projects.
Looking ahead, Elliott outlined tangible milestones investors should watch over the next 6 to 12 months.
These include establishing the company’s Saudi entity, progressing power and site discussions, deepening engagement with innovation bodies such as the RDIA, and early signs of regional partnerships and funding structures. According to Elliott, these steps will help de-risk the strategy and demonstrate real momentum on the ground.
Proactive: Paul, very good to speak with you. Why was Saudi Arabia the right first major Middle East entry point, and what tipped the balance in favour of moving now?
Paul Elliott: Saudi Arabia has always been at the forefront of the company’s remit because it combines scale, policy clarity and execution speed. Under Vision 2030, the Kingdom is actively backing energy transition, digital infrastructure and innovation, which aligns closely with what the company does. The timing was right, the regulatory environment is ready, capital is deployable, and the company is now engaging with the Research, Development and Innovation Authority, or RDIA, which reinforces Saudi Arabia’s commitment to commercially driven innovation.
Proactive: You highlight ultra-low-cost power as a key advantage. How does that change project economics compared with operating in the UK or Europe?
Paul Elliott: Power is often the biggest cost in these types of projects. In the UK and Europe, it is high and volatile, which limits returns and scale. In Saudi Arabia, access to power is stable and low cost, and it transforms the economics. It improves margins and shortens payback periods for investors and those involved in the company.
Proactive: Access to regional and Sharia-compliant capital is a big part of the story. How realistic is that funding route, and what could it be used for?
Paul Elliott: It is extremely realistic. The first step is securing approval from the Ministry of Investment for Saudi Arabia, which the company has achieved, and then engaging with the RDIA.
The Middle East has deep pools of capital that are looking for infrastructure, energy and innovation projects structured in a Sharia-compliant way. An approved presence through MISA is essential. Over time, that capital could support joint ventures, regional expansion and strategic partnerships. It is not just about funding, but also acceleration through partnerships.
Proactive: From an investor’s point of view, what are the first tangible milestones to look for over the next six to twelve months?
Paul Elliott: Key milestones include establishing the company’s Saudi entity, progressing discussions around power and sites, continued engagement with innovation bodies such as the RDIA, and early signs of regional partnerships and funding structures. These are tangible steps that de-risk the strategy and demonstrate momentum on the ground.
Proactive: Thank you very much for your time today.
Paul Elliott: Thanks very much for having me.