Kingdom leads GCC in nonoil production

Updated 17 July 2013

Kingdom leads GCC in nonoil production

The Gulf Cooperation Council (GCC) countries are strenuously working to diversify income sources and minimize reliance on oil through investment in leading industrial activities, local media reported.
Saudi Arabia, in particular, is leading the GCC region to develop nonoil sector where the value of the ongoing nonoil projects is estimated at $ 17 billion (SR 63.7 billion), Al-Riyadh daily said quoting a report by Gulf Investment Corporation (GIC).
The Kingdom has reportedly occupied the 12th rank among the world's biggest 40 countries concerned with renewable energy sources.
In other GCC countries, the UAE has spent $ 5 billion in solar energy projects, currently under construction, whereas the value of nonoil projects is estimated at $ 2.1 billion, which are mostly concentrated in Abu Dhabi Emirate.
The Kingdom recently announced four solar energy projects, notably the solar energy project in Makkah, announced in the last quarter of 2012, whereby the holy city will become the first area to use an alternative energy source in the Kingdom, the local media said.
In Qatar, meanwhile, nonoil projects captured some $ 2.8 billion, mostly in iron and steel industries. Cement industry is predicted to lead business sector in the next five years at the growth rate of 11.2 percent followed by consumer industry sector at 7.7 percent.
On the other hand, the GCC countries will continue to achieve high rates of economic growth in the current year despite a slight decline in the oil prices and lower exports, which dropped by 5 percent compared to last year’s figures, the local media said.
Based on the above situation, levels of personal incomes have steadily increased, which led to the expansion of bank deposits, particularly in Saudi Arabia, the UAE and Qatar, and encouraged the banks to expand banking credits.
Meanwhile, Saudi Arabia has topped the MENA countries in terms of solar energy projects where it got 4.1 points out of 5 points, according to a report released by VtM, a US solar research firm.
Turkey came second at 3.9 points, followed by Abu Dhabi and Morocco jointly at 3.6 points in the third rank, Jordan in the fifth rank (3.2 points), Dubai in the sixth rank (3.1 points), Algeria and Egypt jointly in the seventh rank (3 points), and Qatar in the ninth rank (2.4 points).
The MENA region has the biggest solar energy potentials globally whereas Saudi Arabia and Turkey will lead the regional countries in terms of the highest energy demand and will become the first two countries to use the electric scale of GigaWatt (or billion watts) by 2015, according to the VtM report.

Russia’s RDIF to boost investment deals in Saudi Arabia

Updated 17 January 2019

Russia’s RDIF to boost investment deals in Saudi Arabia

  • Fund's CEO Kirill Dmitriev leads a delegation of more than 20 Russian business figures to the Kingdom
  • The delegation discussed projects in oil refining, petrochemical, gas chemical and oilfield services

RIYADH: Russian sovereign wealth fund RDIF said on Wednesday it would significantly boost its investments deals with Saudi Arabia in 2019.

The fund’s CEO Kirill Dmitriev led a delegation of more than 20 Russian business figures to the Kingdom to discuss new projects.

Saudi Energy Minister Khalid Al-Falih met Dmitriev in Riyadh and expressed his happiness on the progress they made in the talks and the cooperation between the two countries. 

“Its not only commercial cooperation, but we are also working on scientific research, and we have opened a research center in Moscow University,” Al-Falih said.

The minister said the Russian delegation will also meet officials from Saudi Basic Industries Corporation SABIC and mining company Ma’aden among other companies during their three day visit to the Kingdom.

The delegation discussed projects in oil refining, petrochemical, gas chemical and oilfield services sectors, a Russian Direct Investment Fund statement said.

Al-Falih added that the Russian side has started a rubber plant project in Al-Jubail with Total and Novomet.

RDIF already has a $10 billion investment partnership with the Saudi Public Investment Fun (PIF), with more than $2 billion already invested in projects.

“We extend our cooperation not only on oil cuts but to cooperate in oil services, technology, LG and petrochemicals,” Dmitriev said. “We believe Saudi Aramco can be one of the greatest partners of Russia.”

The CEO said they were continuing to cooperate with PIF in Saudi Arabia through a number of energy investments.

Russian companies are also keen to invest in the Kingdom’s planned $500 billion mega-city NEOM.

“We have companies that have interest to invest in NEOM, we would like to build a port in NEOM, it can be a big port,” Dmitriev said.