The energy and utilities sector in Saudi Arabia must harness innovative strategies to overcome some of the greatest sustainability challenges in the Gulf Cooperation Council (GCC) region, Booz Allen Hamilton said in a report titled “The Future is Innovation.”
The GCC states hold almost a third of proven crude oil reserves and approximately a fifth of global gas reserves. However, declining reserves and revenues along with increased consumption due to rapid industrialization, population growth and rising domestic energy demand, are testing the region’s capacity to its limits.
Policy changes and shifting national budgets across the GCC indicate that the region’s governments are responding to these challenges, and the region’s key energy and utilities players will need to adapt to new realities.
According to a report by MEED titled “Renewable Energy in the MENA Region 2017,” Saudi Arabia is looking to reduce its dependence on oil and enable a sustained and diversified economy. The Kingdom seeks to generate 70 percent of its power from natural gas and allocate the residual 30 percent to renewable and other sources.
Many economic and social reforms have recently been announced in an increased effort from the Kingdom to diversify its oil-based economy. At the heart of these reforms lie Crown Prince Mohammed bin Salman’s privatization initiatives, including the initial public offering (IPO) of potentially 5 percent in Saudi Aramco.
For the country’s non-oil economy to thrive in a sustainable manner against a fast-growing population and to streamline the complexities of the IPO process, it is essential to keep innovation at the forefront of sustainability strategies. This can continue to drive Vision 2030, help avoid domestic non-oil recession, and boost international confidence.
Adham Sleiman, Vice President, Booz Allen Hamilton MENA, said: “The key to sustainable success lies in innovation, which is a force constantly promoted yet all too infrequently embraced. Energy and utilities companies often face concerns over the sharing of intellectual property, stakeholder reluctance to invest in new research, and financing issues — all of which can impact innovation.”
The GCC states hold almost a third of proven crude oil reserves and approximately a fifth of global gas reserves. However, declining reserves and revenues along with increased consumption due to rapid industrialization, population growth and rising domestic energy demand, are testing the region’s capacity to its limits.
Policy changes and shifting national budgets across the GCC indicate that the region’s governments are responding to these challenges, and the region’s key energy and utilities players will need to adapt to new realities.
According to a report by MEED titled “Renewable Energy in the MENA Region 2017,” Saudi Arabia is looking to reduce its dependence on oil and enable a sustained and diversified economy. The Kingdom seeks to generate 70 percent of its power from natural gas and allocate the residual 30 percent to renewable and other sources.
Many economic and social reforms have recently been announced in an increased effort from the Kingdom to diversify its oil-based economy. At the heart of these reforms lie Crown Prince Mohammed bin Salman’s privatization initiatives, including the initial public offering (IPO) of potentially 5 percent in Saudi Aramco.
For the country’s non-oil economy to thrive in a sustainable manner against a fast-growing population and to streamline the complexities of the IPO process, it is essential to keep innovation at the forefront of sustainability strategies. This can continue to drive Vision 2030, help avoid domestic non-oil recession, and boost international confidence.
Adham Sleiman, Vice President, Booz Allen Hamilton MENA, said: “The key to sustainable success lies in innovation, which is a force constantly promoted yet all too infrequently embraced. Energy and utilities companies often face concerns over the sharing of intellectual property, stakeholder reluctance to invest in new research, and financing issues — all of which can impact innovation.”
