Energy localization to pave way for other sectors: Minister

Prince Abdulaziz bin Salman, Minister of Energy 

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said that localizing supply chains has become strategically vital, adding that the energy sector is of great importance and its localization will pave the way for similar initiatives in various sectors of the Saudi economy.

Energy in Saudi Arabia is not just a sector but the catalyst that drives industry and economic growth in the Kingdom. The total economic impact of the energy sector represents about 40% of the Kingdom’s gross domestic product, the minister added during the Energy Sector Localization Forum.

Supply chain fragility surfaced amid the COVID pandemic, when goods became scarce, which prompted the move towards securing supply chains.

Saudi Arabia faced the risks of excessive dependence on external sources, which drove the government's response to deal with 15 major entities that mobilized efforts to produce vital materials locally. This experience emphasized the urgent need for localization in all sectors, especially the energy sector, according to the minister.

The Crown Prince commissioned a comprehensive study to identify weaknesses in basic products across various sectors. After several studies, it became clear that much must be localized in the energy sector to ensure its sustainability and self-reliance in the future.

"We did not start from nothing, and the credit goes to three companies: Aramco, which implemented the 'Iktifa' program, SABIC with the 'Nusaned' program, and Saudi Electricity with 'Bina' program, where there were higher ambitions," he added.

To achieve greater harmony and cooperation with the relevant authorities, a localization committee was established for the energy sector, said the minister, pointing to the joint efforts towards localization based on local expertise and resources, in line with the Saudi Vision 2030.