Saudi industrial exports reached SR162bn in 2012

Updated 03 May 2014
0

Saudi industrial exports reached SR162bn in 2012

The value of Saudi industrial exports reached SR162 billion by the end of 2012 compared to SR110 million in 1974, Director General of Saudi Industrial Development Fund (SIDF) Ali Al-Ayed said.
Addressing a GCC industrial event in Oman, Al-Ayed said Saudi industrial exports have achieved high growth rates averaging 20 percent per year in the period 1974-2012.
The 14th GCC Industrial conference convened in Muscat, Oman, on March 30-31 was themed “Industrial exports: prospects and challenges.”
It was organized by the Omani Ministry of Commerce and Industry and the Gulf Organization for Industrial Consulting (GOIC) in coordination with the Riyadh-based GCC general secretariat.
The SIDF chief attributed the robust growth of the industrial exports to the availability of hydrocarbons at preferential prices in addition to the conclusion of international and regional trade agreements to this end.
Plastic and chemical products accounted for 77 percent of the total industrial exports in that year, followed by food products at 8 percent, base metals (6 percent), and electric devices and equipment (2 percent), he told the conference.
He said the SIDF used to adopt a series of measures to boost industrial exports, including attraction of foreign investments which had an effective role in transferring experience and technical know-how.
SIDF has approved SR42.2 billion, or 38 percent of total loans, for the industrial projects, he said.
He also enumerated a series of challenges facing local industries, notably how to diversify production and export base for local industries, upgrade technical knowledge, minimize global competition on local products, and how to boost efficiency of export logistics services.
The SIDF chief explored a number of recommendations for the development of national exports, including creation of a national strategy to develop industrial exports, expansion of regional and international trade cooperation and spread of awareness among investors and officials on the importance of exports.


Saudi oil refinery in Gwadar to help Islamabad save $3 billion a year

Updated 5 min 6 sec ago
0

Saudi oil refinery in Gwadar to help Islamabad save $3 billion a year

  • The refinery would produce up to 300,000 barrels per day once completed
  • Saudi Arabia is also setting up reservoirs for liquified natural gas in Pakistan, says Petroleum Minister Ghulam Sarwar Khan

ISLAMABAD: Pakistan expects to agree a deal to build an oil refinery and petrochemical complex at the Balochistani deep-sea Port of Gwadar, during the first state-level visit by Saudi Arabia’s Crown Prince Mohammed bin Salman.

The deal will see Pakistan join with Saudi Aramco to build the facility, expected to cost $10 billion.

“We are working on feasibility studies for the establishment of the oil refinery and petrochemical complex in Gwadar, and will be ready to start by early 2020,” Pakistan’s Minister for Petroleum Ghulam Sarwar Khan told Arab News on Thursday.

Once established, the project will help the South Asian nation cut its annual crude oil imports by up to $3 billion annually, in addition to creating thousands of job opportunities in the impoverished western province.

The country spends more than $16 billion each year on importing 26 million tons of petroleum products, including 800 million cubic feet of liquified natural gas (LNG) from Saudi Arabia, the UAE and other Gulf countries.

Khan claimed the refinery would produce up to 300,000 barrels per day once completed.

“The Saudi authorities have asked us to complete all the initial work on the project on a fast track, as they want to set it up as early as possible,” he said.

A Saudi technical team, including Energy Minister Khalid Al-Falih, has visited Gwadar twice in recent months to examine the site for the refinery, getting briefings from Pakistani officials on security in the area near the border with Iran.

“We will ensure complete security for Saudi investments and people working on the project. A detailed security plan has already been chalked up with help of the security agencies,” Khan added.

Pakistan currently has five oil refineries, but they can only satisfy half of its annual demand. Islamabad and Riyadh have long maintained strong ties, with the latter repeatedly offering the former financial assistance. Last year, the Kingdom guaranteed Pakistan $3 billion in foreign currency support for a year, and a further loan worth up to $3 billion in deferred payments for oil imports, to help stave off an economic crisis. The Islamic Republic also received $3 billion from the UAE to protect its foreign reserves.

Khan added that the Pakistani-Arab Refinery Co. (PARCO) was also setting up an oil refinery at Khalifa Point, near the city of Hub in Balochistan. 

“The work on this project is at an advanced stage. Land for it has been acquired and other formalities are being fulfilled,” he said.

Khan hopes the world’s perception of Pakistan will change upon completion of these deals, after years of war in the surrounding region. Exxon Mobil returned to Pakistan last month after 27 years, and started offshore drilling with $75 million of initial investments. 

“All results of the drilling are positive so far, and we expect huge oil and gas reserves to be discovered soon,” he said.

“More foreign companies are contacting us to invest in offshore drilling and exploration. Saudi Arabia is also setting up reservoirs for LNG in Pakistan. More Saudi investment will come to Pakistan with the passage of time.”