Saudi Energy Minister Prince Abdulaziz Bin Salman Oversees SAR 104 Billion Agreements For Energy Localization

The Energy Localization Forum, themed "Resilient Energy: Enabling Energy Sector Capability and Sustainability," was inaugurated by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. The event gathered ministers, CEOs from both Saudi and international private sectors, energy specialists, decision-makers, investors, and international partners. Prince Abdulaziz highlighted the importance of localization in Saudi Vision 2030 for ensuring energy sustainability and security.

Prince Abdulaziz emphasized that energy is not just a sector in Saudi Arabia but a key driver for industry and development. It significantly contributes to economic growth, with the macroeconomic impact of the entire energy sector estimated to represent 40% of the Kingdom’s GDP. He stressed that localizing energy can inspire similar initiatives across other sectors of the Saudi economy.

The Minister highlighted several localization programs such as Aramco's In-Kingdom Total Value Add (iktva) program, SABIC's Nusaned program, and the Saudi Electricity Company's Bina program. These initiatives aim to enhance local content and capabilities within the energy sector. The COVID-19 pandemic revealed vulnerabilities in supply chains, prompting swift action to coordinate local production of essential supplies with 15 key entities.

His Highness explained that the pandemic underscored the need for localization across all sectors, especially in energy. He referred to directives from Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud to address these challenges, including preparing a comprehensive study on bridging supply chain gaps.

During the forum, 107 strategic agreements and memorandums of understanding were signed to bolster Saudi Arabia's global leadership in energy. These agreements involved 117 public and private entities with an estimated total value of SAR 104 billion. The signing ceremony was attended by Minister of State Dr. Hamad bin Mohammed Al Sheikh and Minister of Industry Bandar bin Ibrahim AlKhorayef.

The Energy Sector Localization Committee has set short and long-term goals to achieve 75% localization by 2030. "Our comprehensive strategy focuses on localization rather than just settling for local content," said His Highness. "We are taking an all-inclusive approach to localize the entire supply chain, from raw materials to the final product."

Forum's Role in Economic Growth

The forum was organized by the Ministry of Energy in collaboration with Saudi Aramco, the Saudi Electricity Company, and SABIC. It aims to achieve 75% localization in line with Saudi Vision 2030 over two days. The event highlights localizing the energy sector's role in building a sustainable future, driving national economic growth, encouraging investment, providing business opportunities, and enabling entrepreneurs.

The forum also showcases investment opportunities while promoting innovation within the sector. It underscores how localizing energy can lead to quality opportunities for business prosperity and enable entrepreneurs to play significant roles in this rapidly expanding field.

With inputs from SPA