Saudi Arabia’s energy minister Khalid Al-Falih talks Middle East industrialization at WEF MENA event

Saudi Arabia's energy minister Khalid Al-Falih spoke at the World Economic Forum for Middle East and North Africa about the Kingdom's new vision for industrialization in the Middle East region. (Screenshot)
Updated 07 April 2019
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Saudi Arabia’s energy minister Khalid Al-Falih talks Middle East industrialization at WEF MENA event

DEAD SEA, Jordan: Saudi Arabia's energy minister Khalid Al-Falih spoke at the World Economic Forum for Middle East and North Africa about the Kingdom's new vision for industrialization in the Middle East region.

The discussion with WEF founder Klaus Schwab opened with the Swiss thanking Al-Falih for the large Saudi delegation at the forum, and Al-Falih voiced his appreciation for Schwab's support for the Middle East region at the various WEF events.

Al-Falih thaned Schwab for WEF's ongoing support for the Middle East region at various, previous events and he echoed Crown Prince Mohammed bin Salman's assertion that the region "can become the new Europe."

The energy minister used the cases of Saudi Aramco and SABIC as examples of how Saudi Arabia can lead the way in advancing industrialization in the region and he mentioned how important tapping into the youth talent pool for development.

On the role of the private sector in the success of Saudi Arabia's Vision 2030 plans and economic diversification, Al-Falih said the Kingdom's government was making sure the private sector was encouraged to operate and invest in the Kingdom, citing examples of airports and ports, and facilities privatization in Saudi Arabia.

When asked by Schwab about the transition from fossil fuels to newer, renewable energy sources and its impact on Saudi Arabia's economy, Al-Falih said the process would take many decades, and that with population growth adding 2 billion people to the global population and the subsequent expansion of the 'middle class,' demand for all sources of energy — including oil and gas — will still exist well into the middle of the century.

Al-Falih highlighted Saudi Arabia's "heavy investment" in renewable energies, and how he advises the Saudi government as well as his clients that the use of oil and gas has to be "more effective", adding that both would peak by the middle of the century and saying "we will still need all solutions."

The energy minister was also positive about the future for the Kingdom in terms of youth employment and women empowerment in the workplace — stating the need for the private sector to be involved in the education of youth, of both genders, given they it benefits them when hiring graduates. It is something the education ministry in Saudi Arabia is concentrating on by revamping the curriculum to help graduates get into the private sector, Al-Falih said.

And Al-Falih said that, while Saudi Arabia's plan for women empowerment in the work force will come about differently to the way it works in other parts of the world, he was certain women in the Kingdom and the Middle East region as a whole will thrive.


Jubail petrochemical complex could lead to homegrown car industry

Updated 27 June 2019
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Jubail petrochemical complex could lead to homegrown car industry

  • Advanced Petrochemical said it signed a memorandum of understanding with SK Gas to build a propane dehydrogenation and polypropylene complex
  • The project is expected to produce high value plastics grades for the automotive industry as well as other specialized grades that are currently being imported into Saudi Arabia

LONDON: Advanced Petrochemical and South Korean SK Gas plan to develop a $1.8bn petrochemical complex in Jubail that could help plans to develop a homegrown car industry in Saudi Arabia.
It comes amid increased economic cooperation between Riyadh and Seoul following an $8.3 billion economic co-operation pact struck this week during the first visit of Saudi Crown Prince Mohammed bin Salman to South Korea.
The Saudi petchem producer said it signed a memorandum of understanding with SK Gas to build a propane dehydrogenation and polypropylene complex. The project is expected to produce “high value plastics grades for the automotive industry” as well as other specialized grades that are currently being imported into Saudi Arabia, Advanced Petrochemical said in a filing to the Tadawul stock exchange on Wednesday.

 

Separately the company said it has received propane feedstock allocation from the Kingdom’s Ministry of Energy, Industry and Mineral Resources for the project, which is slated to start in 2024.
Advanced Petrochemical also disclosed in a third filing that it was conducting a feasibility study for a cracker project in the Kingdom.
These latest deals reflect twin objectives to develop high-value manufacturing in the Kingdom to create jobs while also investing heavily in the petrochemicals sector to capitalize on rising global demand for high value plastics.
Saudi Arabia is the largest new automotive sales and auto parts market in the Middle East, accounting for an estimated 40 percent of all vehicles sold in the region, according to the US export.gov website.The addition of potentially as many as 3 million women drivers to the roads is expected to further spur domestic demand.
Saudi companies, spearheaded by Saudi Aramco, are investing billions of dollars in petrochemical projects worldwide to meet rising global demand. Petrochemicals are set to account for more than a third of the growth in world oil demand to 2030, and nearly half the growth to 2050, adding nearly 7 million barrels of oil a day by then, according to the International Energy Agency (IEA).
Demand for plastics — the key driver for the petchem industry — has outpaced all other bulk materials (such as steel, aluminum, or cement), nearly doubling since 2000, the IEA estimates.

FACTOID

40% - Saudi Arabia is the largest new automotive sales and auto parts market in the Middle East, accounting for an estimated 40 percent of all vehicles sold in the region.