Saudi Energy Minister Leads SAR 104 Billion in Deals at Energy Localization Forum

Riyadh: Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, inaugurated the Energy Localization Forum with the theme “Resilient Energy: Enabling Energy Sector Capability and Sustainability.” The event brought together top officials, including Saudi ministers, international CEOs, energy experts, investors, and key decision-makers.

Saudi Vision 2030 and Localization

In his opening speech, Prince Abdulaziz highlighted the importance of Saudi Vision 2030 in driving localization. He explained that energy is more than just an economic sector in Saudi Arabia; it is the engine for industrial growth and development. The energy sector currently makes up 40% of the Kingdom’s GDP.

The Minister emphasized the significance of various localization programs. These include Aramco’s In-Kingdom Total Value Add (iktva) program, SABIC’s Nusaned program, and the Saudi Electricity Company’s Bina program. These initiatives are vital to enhancing the economy by keeping energy resources and knowledge within Saudi borders.

The Impact of COVID-19 on Supply Chains

Prince Abdulaziz also pointed out the lessons learned from the COVID-19 pandemic. The crisis exposed weaknesses in global supply chains, particularly for essential goods. This realization prompted Saudi Arabia to move quickly and secure local production. The country worked with 15 key organizations to reduce dependency on foreign suppliers.

By doing so, the Kingdom ensured that it could meet internal demand even during global disruptions. The pandemic, he noted, clearly showed the importance of localization, especially in the energy sector.

Crown Prince’s Efforts to Close Gaps

In his speech, Prince Abdulaziz acknowledged Crown Prince Mohammed bin Salman’s leadership. The Crown Prince directed several initiatives to address supply chain issues. One of these was a comprehensive study on how to bridge gaps in various sectors.

To support this, the Energy Sector Localization Committee was formed. This committee focuses on both short and long-term strategies. The goal is to localize 75% of the energy sector by 2030.

Comprehensive Approach to Localization

The Minister outlined Saudi Arabia’s comprehensive approach to localization. Instead of focusing only on local content, the plan involves the entire supply chain. This means localizing everything from raw materials to final products.

“Our strategy covers all stages of the supply chain,” said Prince Abdulaziz. He stressed that the aim is not just to produce goods locally but also to transfer the knowledge and technology needed to build the supply chain within the Kingdom.

Signing of Agreements Worth SAR 104 Billion

During the forum, Prince Abdulaziz witnessed the signing of 107 strategic agreements and memorandums of understanding. These deals, worth a total of SAR 104 billion, involved 117 public and private entities. The agreements will strengthen Saudi Arabia’s role as a global leader in the energy market.

Key government figures present at the event included Dr. Hamad bin Mohammed Al Sheikh, Minister of State, and Bandar bin Ibrahim AlKhorayef, Minister of Industry and Mineral Resources.

The Forum’s Role in Saudi Vision 2030

The two-day forum is part of the Kingdom’s broader efforts to localize 75% of the energy sector by 2030. Organized by the Ministry of Energy, in partnership with Saudi Aramco, SABIC, and the Saudi Electricity Company, the event aims to promote sustainable growth. It encourages local and international investment, opens up new business opportunities, and fosters innovation in the energy sector.

Conclusion

In line with Saudi Vision 2030, the Energy Localization Forum plays a crucial role in securing the Kingdom’s future in energy. The forum highlights the importance of building a localized energy sector that not only meets Saudi Arabia’s needs but also enhances its position on the global stage.

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