HRH Minister of Energy at iktva 2022 Forum

[M086-01] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:00 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

I just offered hala job at the ministry.

[M086-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:10 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

بسم الله الرحمن الرحيم، والصلاة والسلام علي سيد المرسلين سيدنا محمد، وعلي آله وصحبه أجمعين. صاحب السمو الملكي الأمير سعود بن نايف بن عبد العزيزأمير المنطقة الشرقية، صاحب السمو الملكي الأمير أحمد بن فهد بن سلمان نائب أمير المنطقة الشرقية. إخواننا الضيوف، وبكل فخر واعتداد أقولها، وأنا صادق فيها إن شاء الله: الزميلات والزملاء والإخوة والأخوات من منظومة الطاقة التي نعمل فيها جميعًا كأسرة واحدة؛ يُسعدني أن أشاركم اليوم في هذه المناسبة السعيدة التي نحتفل فيها مع شركة أرامكو وجهود التوطين المبذولة في إكتفاء الذي يُعد علامة فارقة قي مسيرة توطين قطاع الطاقة قي المملكة، وكما ذكر الأخ أمير منذ قليل بسبب الحضور من أصدقائنا من دول متعددة؛ فلتسمح لي سموك بأن أكمل كلمتي باللغة الإنجليزية.

[M086-03] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:01:23 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

Your Highness, Your Excellencies, delegates, ladies and gentlemen, it is a great pleasure to be with you this morning as we continue our journey toward greater localization of the Saudi energy sector. Together, we are creating a more sustainable domestic supply chain to deliver the vital energy upon which the global community depends on, and will continue to require for many decades to come. Saudi Arabia energy sector localization strategy, and this is the difference I want to mention, we met here two years ago, to almost two years ago, I think it was February 2019, just at the precepts of the endemic and then pandemic, and who could have imagined that with all the atrocity that the whole world went through, that we did not sit on our hands wondering about.

[M086-04] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:02:31 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

So what I am about to describe for you is the work we did as an ecosystem, commensurate with the challenging times that we went through in attending to this crisis, and how we weaved, and maneuvered our way to mitigate one of the most calamitous crises that the world had underwent, so Saudi Arabia energy sector localization strategy and the ambitious target to achieve 75% of localization by the end of this decade is key to attain the Vision 2030, 2030 goals of expanding local economic and value addition, developing and diversifying the private sector, and positioning Saudi Arabia as the regional hub for industry, logistics and energy products and services, and from my experience, the recipe of success hinges upon building an ecosystem which promotes cooperation and collaboration by the work of other stakeholders in a single aligned ecosystem.

[M086-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:03:54 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

We can collectively achieve our targets and strategic goals in the most efficient, sustainable and cost effective manner, our collective and comprehensive approach enabled us to overcome the challenges of major national projects such as energy efficiency program, power sector integration and the circular carbon economy initiatives, along with the same approach, is also being applied undergoing projects such as our national liquid displacement program, which will save us the kingdom around roughly around million barrel of crude oil and products in a yearly basis, in a daily basis to achieve greater alignment and further strengthen the bond of collaboration between the various stakeholders.

[M086-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:04:51 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

We will soon be establishing a localization committee for the energy sector under the Supreme Committee of the Energy Mix, and Electricity Production, and Enablement of renewable energy sector change chaired by His Royal Highness Prince Mohammed. The Crown Prince Mohammed bin Salman bin Abdulaziz. This will involve the engagement and support of roughly 13 different government ministries and various agencies, mindful of the specific area of responsibility and independent governance of each and every entity. The principal mandate of the localization committee for the energy sector will be to oversee the development of the detailed plan and initiatives for localizing goods and services, as well as short and long-term localization targets on the way to reach our 27% target by 2030.

[M086-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:06:01 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

The Committee will ensure smooth implementation and the bottleneck, any obstacle to achieve the targeted plan, and the committee will also design, develop and deliver more strategic enablers to facilitate the energy sector efforts to reach its localization targets and achieve its full potential. The macroeconomic impact by the entire energy sector is estimated to represent 45% of the kingdom GDP, so it is localization will place the trail of similar initiatives across the Wider Saudi Economy. Let me emphasize though, that in keeping with our holistic strategy, we are focusing on the more difficult and more ambitious task for localization rather than just settling for local content. I am sure you noticed, I mean, and everybody is talking about localization, no longer we are talking about local content.

[M086-08] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:07:08 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

It is still a big, ambitious thing to talk about local content, but a more ambitious and more difficult cause would be localization. In other words, we are taking all inclusive approach to the entire supply chain from raw materials to finished products in order to maximize their benefits that would encourage the development of anchor projects in the supply chain, such as steel plates casting and forging, carbon fiber and nonmetallic, maritime development and other key product and finished goods. This, in turn, will also benefit multiple national industries such as the automotive and military sectors, fostering economic development and diversification, and help meet the kingdom broader localization objective.

[M086-09] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:08:09 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

There is also a tremendous opportunity to further localize engineering, procurement and construction activities. Today, simple engineering design has been formally formed locally, while most engineering work for a larger, more complex projects is done outside the kingdom, but not anymore. Insha'Allah we, by localizing the ABC Sector Design of all energy related projects will be done in kingdom further enabling the use of local products and services. To realize our strategic objective, there must be substantial investment across the number of energy and water segments, such as oil and gas, refining, petrochemicals, renewable and conventional power generation and water dissemination, that is one reason we are so focused on creating an aligned enabling investment and business ecosystem.

[M086-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:09:16 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

Since this investment in the Kingdom could reach up to, and hear me well, up to 202.85 trillion Saudi Riyals, almost three-quarters of a trillion U.S. Dollars, and it is achievable, and we will achieve it, and you just look behind you, and you will see who is going to achieve it. The development of the women and men in the workforce is also an indispensable element in the continuing transition of energy sector with our new target for localization, direct jobs are anticipated to increase by roughly around 8000 jobs across the domestic supply chain ecosystem, in addition to the positive ripple effect and cascading effect across the wider Saudi economy.

[M086-11] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:15 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

Saudi Arabia has well-educated, ambitious and committed youth that want to build a career for themselves while contributing to their national prosperity across many industrial engineering and professional disciplines. Turning to the wider context, the global energy sector is fast becoming a leading consumer of critical minerals and metals, and as we experience a global energy transition, there is a risk that demand will outstrip its supply. We are also targeting to maximize the kingdom localization value by increasing the contribution of renewable energy resources up to 50% of the kingdom total energy mix by 2030, which represents yet another opportunity to invest in localization.

[M086-12] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:11:12 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

We want to manufacture the related products locally to meet both domestic and regional needs, therefore, our localization strategy encompasses minerals and metals in order to secure a steady and sustainable supply of critical raw materials from the kingdom and abroad. That will help establish our position in the global market for clean energy supply products and services that will complement and the development of renewable hydrogen, nuclear and other forms of energy. Our ambitious localization strategy, including the anchor projects set to serve the entire targeted ecosystem, including other beneficiary sectors, will elevate our industrial complex index from around 0.8% to roughly between 1.6 to 2% placing the kingdom at par with the major industrial countries.

[M086-13] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:19 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

Given the scale and the far-ranging scope of this localization initiatives, but also the enablers and investment in place, there will be tremendous new opportunities for strategic investors to be part of the kingdom entire energy supply chain, as is often said, the kingdom is open for business. Ladies and gentlemen, greater localization strengthen the security of our energy supply to the world, enhance our position as an energy industrial and logistical logistical hub, expanding the kingdom capacity for technological innovation, help our strategic partners grow alongside us and provide quality careers for our young women and men.

[M086-14] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:13:17 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

Given its incredible benefits and enduring impact, there can be no doubt localization is shaping our future and the generation of Saudis to come. By working hand-in-hand with our strategic partners throughout the energy ecosystem, and striving to attain common and mutually beneficial goals, I know it is challenging, but it is also exciting task. However, it is achievable to reach the 75% localization target by 2030, so I ask each of you here today to join us in helping to realize that vision. Vision 2023 Targets on localization to achieve the ambitious goal set forth by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and his right hand Crown Prince, Prince Mohammed bin Salman bin Abdulaziz.

[M086-15] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:24 · HRH Minister of Energy at iktva 2022 Forum · 2022-01-24 · مشاهدة عند هذا التوقيت

More important, we owe it to our youth, it has been my custom, and I am proud of that custom, I preach a lot about the young and the youth, and it is so much enabling me to see myself every morning motivated to go to work, motivated to put up with challenges, because I know that work would not go in vain, I will see it in my children, I will see it in other children and their children, too, and each and every one of us must think of it this way. We are building a nation for generations to come, for a leadership that bestowed on us that honor, and it is an honor that we would hold and hold rightly. Thank you very much, indeed.