Saudi Minister of Energy, Prince Abdulaziz bin Salman, emphasized the urgent need to increase localization in the energy sector during the inauguration of the “Energy Localization Forum 2024” in Riyadh. The goal is to localize 75 percent of the energy sector by 2030. The forum, organized by the Ministry of Energy in partnership with Saudi Aramco, the Saudi Electricity Company, and SABIC, aims to enable localization for energy supplies and enhance Saudi Arabia’s global leadership in all energy markets. The coronavirus pandemic highlighted the importance of securing supply chains and localizing sectors, including energy, to meet global demand for energy.
Prince Abdulaziz mentioned that Crown Prince Mohammed bin Salman tasked them with preparing a study to fill the gaps in the supply chains in the energy sector. The study revealed significant gaps and risks, prompting the establishment of a committee to accelerate the localization of the energy sector in collaboration with 15 entities. The focus is on addressing obstacles and localizing raw materials into final products. The ultimate goal is to support energy security and sustainability, as well as the sustainability of supply chains in order to meet global energy demand.
The Energy Localization Forum 2024 saw the participation of government officials, executive leaders from the Saudi and international private sector, specialists, experts, decision-makers, investors, and international partners. Interactive discussion panels, dialogue sessions, and workshops were held, leading to the signing of agreements, memoranda of understanding, and partnerships on the sidelines of the forum. These initiatives are essential for supporting and developing the capabilities of the national value chain, creating job opportunities, localizing equipment, procurement, and services, and developing engineering works in advanced sectors of the energy industry.
Localization programs and initiatives in the energy sector include work related to oil and gas, utilities, electricity, renewable energy, petrochemicals, hydrogen, carbon management, and maritime sectors. By increasing localization in the energy sector, Saudi Arabia aims to strengthen its position as a global leader, contribute to energy security and sustainability, and meet the growing global demand for energy. The emphasis on localizing supply chains is essential for securing critical infrastructure and ensuring a reliable and resilient energy supply in the face of future challenges and disruptions.
Through strategic partnerships and collaboration with key entities, Saudi Arabia is working towards accelerating the pace of localization in the energy sector. The commitment to increasing localization will not only benefit the country’s economy but also contribute to global energy security and sustainability. By prioritizing localization and addressing obstacles, Saudi Arabia is taking proactive steps to secure its energy supply chains and enhance its position as a key player in the global energy market. The Energy Localization Forum serves as a platform to showcase Saudi Arabia’s leadership in the energy sector and strengthen partnerships with international stakeholders to achieve mutual goals.
