The New Energy Era
If Saudi Vision 2030 has so far succeeded in boosting the industrial sector's progress over the past ten years, driving it to achieve exceptional accomplishments that support the Saudi economic system in its radical transformations, then the same sector is poised for further achievements in the coming period, in light of the wise royal decision appointing His Royal Highness Prince Abdulaziz bin Salman as Minister of Industry and Mineral Resources, in addition to his current position as Minister of Energy.
The wisdom of the royal decision is embodied in the government's recognition of the importance of strong integration and deep interconnection between the industry and energy sectors, to be on a single track that outlines the features of a distant future phase taking into account all dimensions of integration between the two sectors, especially as the Kingdom - the energy bank - has come to lead all types of clean energy, including nuclear, to move forward in building a strong and influential national economy, relying in one of its tracks on industry and export.
There is a distant vision, whose features are becoming clear today, based on creating a giant entity that blends energy components with some types of industry, benefiting from the wealth of 'mining.' The outcome is an industry that merges these sectors, encouraging the private sector to expand and specialize, which always reflects on two national economic directions: job localization and product quality.
We must bear in mind that the integration between the industry and energy sectors forms complete and successive loops, starting with energy production, which is indispensable for creating a national industrial product, as well as extracting mineral wealth that enters into many manufacturing industries, reaching the localization of industries and turning natural resources into value-added products. This integration would enhance the competitiveness of the national economy, raise the efficiency of resource investment, and support building a more diverse and sustainable industrial base.
Strengthening integration between the two sectors under a single administrative oversight would accelerate the implementation of the National Industry Strategy, especially the Saudi mining sector, which today possesses exceptional capabilities that raise its contributions to the national economy. It requires bold decisions from His Highness Prince Abdulaziz bin Salman to contribute to achieving rapid growth for the vision's targets, most notably achieving economic diversification and attracting more foreign investments. This can be achieved after linking mining and energy, granting greater powers in negotiations, linking investments that foreign investors are competing for, and building a model of profitable deals for the Kingdom.
Prince Abdulaziz bin Salman, who has lived the details of the energy industry and made its modern history, is known as a practical official with vast and diverse expertise. During his six years leading the energy sector, new concepts took root that go beyond the sector's role to the environment and leading the global scene in preserving it.
His Highness was able to expand the sector's activities by introducing renewable energy tracks and knocking on the doors of nuclear energy, renewable and clean energy. This diversity in energy reflects His Highness's directions and the magnitude of his aspirations to build a strong, cohesive, and sustainable energy sector, which will be positively reflected on the industry and mining sector, elevating it to the hoped-for global level.
The fruits of integration between the oil and energy sectors will be reaped in the coming period by drawing up plans and work strategies to develop both sectors together, reaching the maximum benefit of each sector from the other, achieving the sectors' targets. Most notably, implementing the Vision's goal of increasing non-oil exports to more than 550 billion riyals by 2030 according to Bloomberg, a goal not impossible given the achievements of the Saudi economy in recent years, when it raised the GDP from non-oil activities to more than 50 percent, achieving one of the Kingdom's Vision targets of diversifying income sources and not relying on oil sector income.
Original source: Al-Riyadh
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