The KSA’s most prominent sector is poised for unprecedented growth, diversification, and profitability.
The outlook for Saudi Arabia’s energy sector has never been brighter or more secure. The high oil revenue environment has spurred a boom in both oil and non-oil development projects.
Unlike previous investment cycles, the current round of investment projects is marked by heavy private sector participation with US$79 billion in private-sector energy projects under development.
Private investment is expected to grow even further as the economy expands and the Saudi business environment continues to improve.
Activity in the world’s premier energy economy will develop rapidly as large-scale capital spending is applied to building new capacity and expansion of existing facilities. For example, the Arab Oil and Gas directory forecasts major new energy investments in KSA, including:
- Petrochemical Projects: US$90 billion
- Power Generation: US$90 billion
- Water Desalination Plans: US$88 billion
- Natural Gas-Related Projects: US$50 billion
Refining projects by private investors are also under consideration. In addition to direct energy-related investments the sector will be supported by an estimated US$140 billion in general infrastructure outlays including the Economic Cities and transport links.
With the world’s largest oil reserves supported by a highly developed energy infrastructure, Saudi Arabia offers investment opportunities across the value chain in a number of energy and energy-related subsectors. These include:
- Crude Oil Refining
- Power and Water
- Mining and Metals Processing
Crude oil refining
With its strategic location, long-term supply security and rapidly improving infrastructure, Saudi Arabian refining represents a huge investment opportunity.
Enhanced supply from new refineries and increased investment in differentiated chemicals are transforming Saudi Arabia’s petrochemicals sector.
KSA’s close proximity to growing Asian markets, efficient export operations and an increase in production mean it’s ready to capture increased share of the global fertilizer market.
Power and water
Strong population growth and a development boom in Saudi Arabia have resulted in unprecedented demand for effective and efficient power and water supply.
Mining and metals
With the largest known deposits of mineral resources in the Middle East, mining and metals processing in KSA is a new growth area and as such, a lucrative target for investment.