Oil and energy sector in the region is a major contributor to the economies of the GCC and remains an opportune source for investments, said Saudi Arabian General Investment Authority (SAGIA) Gov. Abdullatif Al-Othman.
Speaking at the Middle East Oil & Gas Show and Conference in Bahrain, Al-Othman said: “Today our industry commands respect and source of admiration. These achievements afford us the opportunity to explore new horizons for investments in this vital sector.”
He said in spite of all the achievements, the oil and energy sector remains one of the most promising that provides various investment opportunities, stressing on the importance for the GCC to adopt policies that aim to raise the added value in this sector, and encourage the establishment of industries and support services in downstream conversion, manufacturing, engineering, and construction. In addition, there needs to be targeted national talent development plans as well as research and development to enable technology transfer, he said.
It was stated that GCC active projects in the energy sector in 2012 reached $ 600 billion, with a local content share of 20 percent. “Our successful experience in raising the percentage of local content (engineering, material manufacturing and services) was led by companies such as Saudi Aramco and SABIC and others in the region. This should contribute to our progress to move forward in the right direction and create policies that enable an increased localization of this particular industry,” he said.
Al-Othman underlined the importance of investing in downstream conversions industries with crude oil accounting for 84 percent of total exports of all GCC countries and 90 percent of petrochemical exports comprising raw products with low added value.
He offered some examples of potential enabling policies such as sector specific national talent development programs; establishing sector specific local content targets in areas of engineering, material and equipment; allocation of percentage of projects to SMEs; strategic alliances with global manufacturers to expand manufacturing and research and development capabilities locally.
“This industry is a cornerstone for our economy and through such policies we can help create truly integrated and developed sector that will not only increase our competitive advantage but also help set the foundation for a diversified economy,” he said.
SAGIA chief highlights need to explore new horizons
