Energy Localization Forum

[M151-01] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:08:48 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

I was in an event this morning and I keep worrying about whether I'm reading, whether I will be reading the wrong speech for the wrong audience. There are so many events and my God, this country, this city is becoming. A city of so many things. A city of joy, a city of acceleration of every source of energy. It's also a place where lots of people celebrate so many good things, celebrating so many things as we come along trying to achieve our vision 2030. I take a great deal of pleasure of being, I always say, because I believe in it, that I am one. Amongst equality in this ecosystem, energy ecosystem. Because without that spirit and we are changing the wording now, it used to be called band of brothers, now we're calling it band of sisters and brothers. And it is. And because of that we're here. And because of that we're festive. And because of that we have this awesome gathering with so many partners. Partners that were here are expanding more. And I'm sure that if we host this gather gathering to next year or the year after that, the number, the room will have to be enlarged, the size of the audience will be bigger. But more important, we have a leadership. But unfortunately, as soon as we feel that we are securing his targets, he Just Blows us up. With so many targets to come.

[M151-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:19 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

This the resilience of his leadership, the bigger the ambitions that he throw at us to some of us might cause us to be in hospitals one of these days. But here you go. I just want to welcome your excellencies, your highnesses, your excellencies. And in this gathering I should not be doing a lot of speaking because what we will celebrate is something that can speak for itself. However, it is almost important that also I give you a kind of an expose of what we will be doing and how much and what is the real core motive for us in doing what we're doing now. It started with a concern about supply chain, but then we realized that we had not tapped properly what we call it now localization. So if permit me a few minutes. Just to take you on the trip. Of what we have done. And hopefully it give you a straightforward evidence of our commitment of what we shall, what we shall do in the future. So again I welcome you here and this, it is a great this forum bring together together us to focus on our collective effort towards localization and sustainable energy. Built on local expertise and resources. This forum align with the Saudi Arabia national strategy on Envision 2030. And Also which is basically the center of our endeavor in making us to have that holistic view towards the ambition that we are each and every agency is attending the two. The global COVID pandemic had bear on our voluntary had laid a bar the voluntary the vulnerability of our supply chain when essential good became scarce.

[M151-03] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:19 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

And I will never forget those days and nights. Some of my colleagues here Bender Dr. Hamed on the months and months of trying to achieve that meet that challenge of how can we secure ourselves with so many of these goods essential goods that we were supposed to without which I don't think we will have overcome dealing with that With that pandemic we experienced the risk of over reliance on external salts. Promoting a swift response from our government. With the collaboration of 15 key entities we are mobilized to coordinate the local production of vital supplies. This experience underscored the pressing need for localization across the sec all sectors especially in energy. In response to the challenges His Royal Highness Prince Mohammed bin Salman the Crown Prince and the Prime Minister commissioned a comprehensive study to identify vulnerability vulnerabilities within the essential product across the various sectors and to fill the gap in our supply chain. I have to give it to him that some many of us were concerned about how much time consuming it would be. Is it important? Is it relevant? But to be faithfully honest that when we saw the end game of that study I think we were all pale to be honest on how much we have been missing and how seriously dangerous to maintain what we were into at that time. So it was. To be honest, that study was probably the best shocker we've ever had.

[M151-04] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:26 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

Not only because of the pandemic but even post the pandemic. It would have been more than essential to pursue what that study had enabled us to see in many aspects in many sectors including medical by the way for energy. The findings were clear. We must localize critical components in oil and gas, renewable energy and the power system to safeguard our future. Ensuring self reliance as a paramount particularly in time of global disruptions. Our commitment to localizing key elements of our energy supply chain has become a strategic priority. But energy in Saudi Arabia is much more than just a sector. It is an engine that drives our industry, our cities, our prospects prosperity or our economic growth. The macroeconomic impact as Aseel was saying just our fantastic MC. And by the way I have to share with you the news. She's a newly wed so I want to congratulate her and maybe if you. Can join me in congratulations. Just to tell you how much upgrades and personal my relationship with the people I work with the macroeconomic impact of the entire energy sector is estimated to represent about 40%. Did I tell franchise I'm okay.

[M151-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:18:18 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

It constitute about 40% of the kingdom GDP. So energy matters and our localization will Place a trail for similar initiatives across. The wider Saudi economy. And this is what I mean the spillover effect of this program we are not sighting from a vacuum which is really helpful. I have to give it to three companies mainly Rank who took the lead on Ektifa followed by Sapic in Nuksanid and I think SEC got jealous so they started Bina but without that. So you know, we don't want to call ourselves cheaters because we started earlier. So we benefited from the early start and the kickstart and that tells you a lot how much these companies were engaged in. Well, it wasn't localization, it was more. To do with trying to find meaningful. Sources of main components. But now we are taking it to. A bigger and more sizable ambition. But without that baseload I don't think we would have been available today to. Meet here signing all of this agreement.

[M151-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:19:49 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

To achieve the greater alignment and further strengthen the collaboration between the stakeholders we have established a localization committee for the energy sector. And this is where I'm trying to describe as the ecosystem, the governmental ecosystem that enabled us to do what we are doing here. This is under the supreme committee of the Energy mix Electricity production and enablement for the renewable energy sector chaired by his Royal Highness the Crown Prince Mohammed. This involved engagement and support for 15 different government as I said and ministries government ministries and institutions mindful of the specific of responsibility and responsibility and independent governance of each and every entity. Usually in government you get into the so called turf invites my turf, your turf. The way we operate here in Saudi Arabia we always say to each other you man, that's your turf. But please deliver what your mandate is telling you to achieve for us. So we are not confused about whose turf , turf is here and there. We're actually we know one thing that no matter what you do in Silo, you're not going to be achieving anything. And you have to recognize the fact that you have to work cohesively with everybody that can add value to that endeavor, whatever that endeavor. It's a system I had the honor of working with when we first created Efficiency, which is our efficiency program and it has been with us for so many experiences. And now it is something that the Entire government programs are operated with that spirit and that approach because this is. The only thing that would make us. All deliver the principal mandate of The Localization Committee for Energy Sector is to oversee the development of detailed plan and initiative for localizing goods and services. It has set short and long terms and developing and developed strategic enablers to ensure we reach our 75% sector goals by 2030. And the committee will support smooth implementation and attend to obstacles with a view to achieving the target, helping the sector to achieve its full potential. And this is the difference between ARAMCO doing it alone as an induced domestic program.

[M151-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:23:05 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

I mean internal program, or for that matter SABC and sec. No, there are bigger ambitions, more vigorous ambitions, but there are enablers and an ecosystem that support these companies to achieve what they want to achieve. Let me emphasize though, that in keeping in our holistic strategy, we are focused on the more difficult, as they were saying, more difficult, more and more ambitious task of localization, rather than the just setting of a local country. Our approach goes deep to the very meticulous material and minerals that upon which we will be able to achieve our ambitions. Which is again, this is the vigorousness of the program that we should not be content with local content, but go deeper into the materials and the components and the minerals that will deliver us big challenge. It takes maybe 10, 15% more than what is typical local content. Additional 10 to 15% compared to a typical local content program. In other words, and all inclusive approach for localization, then localizing the entire supply chain from raw material to finished product in order to maximize their value to the nation.

[M151-08] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:24:57 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

Why should we export raw material? Why can't we benefit, like what others are trying to do, from benefiting from other sources and materials that have a much better ability to produce it at a low cost? And why we can't compete over these resources. And to be honest, if you run faster, you stand a better chance of getting hold of something that you need. And you need it not only now, but in the future, that will encourage actually the development of an anchor project supply in the supply chain. And we're embarking on few of them and we hope that we can do the rest of them. This in turn will also benefit multiple national industries, such as the automotive, mining and mineral industry, all the way to the water dissemination sector. Because you'll be surprised that in there is a great deal of similarities in some of the equipments that are used in the energy sector and desalination, but even the water system altogether, whereby we will try to enhance the economic benefit of all sectors that can benefit from these equipment. Energy, as I always say, is the core of many of other sectors. Our ambition is to transfer technology and products to Saudi Arabia, encompassing the entire supply chain. And based on this, we can see huge opportunities for exporting world class goods, services and expertise around the globe. We're not alone in that ambition. The region is full of so many opportunities. And I'm not talking about just the Arab world or the Middle east, but I'm talking about further east, where you include East Central Asia as countries that they're doing the same thing. So, yes, we're not going to be content with the idea of self sufficiency. We'll be more content with the idea of being a hub for exporting to many of our countries, neighboring countries, and those who have the similar ambitions. This country, we will tell you, certainly with you, and certainly we need more of you, but certainly with everybody that can join us, shall become the hub of localization in the entire region period.

[M151-09] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:28:04 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

because look at who is expanding we're doing a lot in the oil sector in the gas sector refining petrochemical renewable and the entire power sector chain conventional and unconventional just show me anybody who is doing more expansion Within in the Middle East just to be humble and ask yourself the question who is doing most of the work in the Middle East I've got GE here and my other friend I asked them didn't you come to me asking me to release some of your dual cycle Simmons NGA didn't you come and asked me to release one of your units for to be used in some countries without naming name and I told you what I told you we bought it in October and we shall you shall deliver it on time you know why because the whole word run out of dual cycle correct me if I am wrong simply because you will have to line up for until 28 to get one of those units it's a proud decision we took in October and we know that we are having our energy security being totally secured and we will fulfill our ambition when it comes to the change of our Energy Mix and look at the I take pride of the fact that in our Energy Mix we have adapted to become Swiss so we don't look at this you know swiss cheese is nice but the way we operate we operate as a Swiss clock and Swiss watch.

[M151-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:30:15 · Energy Localization Forum · 2024-10-23 · مشاهدة عند هذا التوقيت

we can have swiss cheese for breakfast to give us energy but what would give you energy real energy is to operate like Swiss watch I know I've taken so much of your time and I'm not going to continue this speech because I run risk to becoming boring but one thing I promise you one thing I owe it again I am a gifted person as an energy minister of Saudi Arabia I have to say it if we did not have the current leadership in the name of the custodian of the two holy mosque King Salman in the name of the Crown Prince prime Minister Prince Mohammed Bin Salman I wouldn't be here standing before you proud of what we have achieved and more important confident that we would what we would achieve will happen but and this is the big butt I am relying on youth empowered Youth and we have within our ecosystem an approach that I will never change which is empowering the youth by imposing and mean the word imposing a bottom up approach and now we're even more proud because lately we just have discovered as I said earlier that we have such an amount of females working in this sector now not only they are doing what their guts is pushing them to do actually I have to testify that some of them are being conceived now as a leading examples of how an honest faithful committed qualified person should attend to his job thank you very much indeed