Saudi Arabia signs energy deals worth $27.69bn
RIYADH, October 24, 2024
Saudi Arabia signed 107 strategic agreements and memorandums of understanding to strengthen its global leadership in the energy sector, involving 117 public and private entities, reported SPA.
The agreements, valued at SAR104 billion ($27.69 billion), were inaugurated by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz at the Energy Localization Forum, titled "Resilient Energy: Enabling Energy Sector Capability and Sustainability."
The signing ceremony was attended by Minister of State Dr Hamad bin Mohammed Al Sheikh and Minister of Industry and Mineral Resources Bandar bin Ibrahim AlKhorayef.
The event was attended by various ministers, CEOs from Saudi and international private sectors, specialists and experts in the energy sector, decision-makers, investors, and international partners.
In his speech, Prince Abdulaziz welcomed the attendees and emphasized that Saudi Vision 2030 has made localization a cornerstone for ensuring the sustainability and security of the future of energy.
He noted that energy in Saudi Arabia is not merely a sector but a driving force for industry and development, contributing significantly to economic growth.
He stated that macroeconomic impact of the entire energy sector is estimated to represent 40 per cent of the Kingdom’s GDP, underlining the importance of localizing energy to inspire similar initiatives in other sectors of the Saudi economy.
He also highlighted localization programs, including Aramco's In-Kingdom Total Value Add (iktva) program, SABIC's Nusaned program, and the Saudi Electricity Company's Bina program.
He further explained that the Covid-19 pandemic exposed vulnerabilities in supply chains, affecting essential commodities and increasing the risks associated with reliance on external sources.
This prompted Saudi Arabia to take a swift action, coordinating the local production of vital supplies in cooperation with 15 key entities. He emphasized that the pandemic underscored the importance of localization across all sectors, particularly in energy.
The Minister also referred to the directives from Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud to address these challenges, including a directive to prepare a comprehensive study on bridging gaps in supply chains.
He highlighted the efforts of the Energy Sector Localization Committee, which has set short and long-term goals and strategic enablers to achieve the goal of localizing 75 per cent of the sector by 2030.
"Our comprehensive strategy focuses on localization rather than just settling for local content" said the Minister.
"We are taking an all-inclusive approach to localize the entire supply chain, from raw materials to the final product, with the goal of maximizing its local value. Our ambition is to transfer technology and products to the Kingdom, encompassing the entire supply chain," he added.
