News

EIC’s GCC Energy Market Report reported this week that its DataStream project database is now tracking 173 Saudi energy projects with a value of US$211 billion for the period 2023 – 2030, as we hit the road for 2024:-

Oil & Gas (upstream, midstream and downstream) – US$127billion (82 projects);

Power and transmission/distribution – US$40 billion (51 projects);​ and

Energy Transition (renewables, hydrogen, CCS, energy storage) – US$44 billion (40 projects).​ 

Critical minerals will pay a key role in the energy transition and Saudi’s mining industry took centre stage this week at the Future Minerals Forum (FMF) held in Riyadh. Unveiled at the forum were details of the 33 sites available for exploration this year, and the first mining belt to be made available for exploration in the region at Jabal Sayid, an area of 4,000 square kilometres. Saudi’s Minister of Industry and Mineral Resources, Bandar Alkhorayef stated that the Kingdom has established a US$182 million mineral exploration incentive programme, in a push to expand its mining sector and tap reserves of phosphate, gold, copper and bauxite.

The Kingdom is securing its future by investing in renewables and is constructing the world’s largest clean hydrogen production hub at the US$500 billion NEOM mega-city.  A collaboration of NEOM, ACWA Power and US-based Air Products, it is set to produce 600 tonnes per day of carbon free hydrogen in the form of green ammonia by 2026 for global export.

Saudi Arabia’s Vision 2030 initiative has seen Saudi heavily investing in the last few years in various industries in a drive to move away from its traditional oil and gas economy, with a push in manufacturing, construction, technology, mining, and tourism sectors. Saudi’s tourism ambitions were highlighted this week with NEOM confirming plans to build a “futuristic” community hidden within a mountain range. The latest luxury project on the Gulf of Aqaba coastline, dubbed Aquellum which promises to “push the boundaries of conventional design and construction possibilities”.  Described as a “subterranean” and “ultra-luxury upside-down skyscraper”, Aquellum will be built inside a 450-metre mountain range, featuring hotels, apartments, rooftop gardens, cinemas, museums and commercial spaces.

With EIC tracking US$211 billion energy projects, mega projects such as NEOM city driving the energy transition and tourism in the Kingdom and Saudi’s mining expansion, this is a timely opportunity for HFI to participate in upcoming events in February in the Kingdom with an IPTC event in Dahran on 12th – 14th February and EIC’s Connect in Dammam on 27th February. These events are an excellent opportunity to meet up with HFI’s clients and connections for our SAVI – Saudi Ventures Initiative.