During the Energy Localization Forum, Saudi Arabia’s Minister of Energy witnessed the signing of 107 strategic agreements and memorandums of understanding that seek to strengthen the country’s global leadership in the energy sector. These agreements involved 117 entities from the public and private sectors, with a total estimated value of SAR104 billion ($27.69 billion).
Under the theme ‘Resilient Energy: Enabling Energy Sector Capability and Sustainability’, various ministers, CEOs from Saudi and international private sectors, specialists and experts in the energy sector, decision-makers, investors, and international partners attended.
Kingdom targets 75 percent localization in the energy sector
The Energy Localization Forum, organized by the Ministry of Energy in partnership with Saudi Aramco, the Saudi Electricity Company, and SABIC, will continue for two days. It is part of the Kingdom’s efforts to achieve 75 percent localization in the energy sector in line with Saudi Vision 2030.
The event underscores the importance of localizing the energy sector to build a sustainable future, drive national economic growth, encourage local and international investment, provide quality opportunities for business prosperity, and enable entrepreneurs to play significant roles in this rapidly expanding sector. It also showcases investment opportunities and promotes innovation.
Energy represents 40 percent of Kingdom’s GDP
Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz inaugurated the Energy Localization Forum. In his speech, Prince Abdulaziz welcomed the attendees and emphasized that Saudi Vision 2030 has made localization a cornerstone for ensuring the sustainability and security of the future of energy. He noted that energy in Saudi Arabia is not merely a sector but a driving force for industry and development, contributing significantly to economic growth.
“Our comprehensive strategy focuses on localization rather than just settling for local content,” stated the minister.
In addition, he said that the macroeconomic impact of the entire energy sector is estimated to represent 40 percent of the Kingdom’s GDP, underlining the importance of localizing energy to inspire similar initiatives in other sectors of the Saudi economy.
He also highlighted localization programs, including Aramco’s In-Kingdom Total Value Add (iktva) program, SABIC’s Nusaned program, and the Saudi Electricity Company’s Bina program.
Bridging gaps in supply chains
During his speech at the Energy Localization Forum, Prince Abdulaziz also explained that the COVID-19 pandemic exposed vulnerabilities in supply chains, affecting essential commodities and increasing the risks of reliance on external sources. This prompted Saudi Arabia to take swift action, coordinating the local producers of vital supplies in cooperation with 15 key entities. He emphasized that the pandemic underscored the importance of localization across all sectors, particularly in energy.
Prince Abdulaziz also referred to the directives from Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud to address these challenges, including a directive to prepare a comprehensive study on bridging gaps in supply chains.
He added that the efforts of the Energy Sector Localization Committee have set short and long-term goals and strategic enablers to achieve the goal of localizing 75 percent of the sector by 2030.
“We are taking an all-inclusive approach to localize the entire supply chain, from raw materials to the final product, with the goal of maximizing its local value. Our ambition is to transfer technology and products to the Kingdom, encompassing the entire supply chain,” he added.
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