Saudi Arabia Forms First National Committee for Energy and Petrochemicals to Boost Private Sector Engagement

Saudi Arabia has officially launched its first-ever national committee for energy and petrochemicals under the Federation of Saudi Chambers (FSC). The new committee is expected to play a pivotal role in advancing the Kingdom’s Vision 2030 goals, which focus on diversifying the economy, increasing investment, and fostering innovation across sectors such as energy, petrochemicals, and renewable energy.

With the Saudi petrochemical sector poised for significant growth, investments in the industry are projected to reach a substantial $600 billion by 2030. The newly formed committee will work closely with various government ministries, regulatory bodies, and key companies in the sector to unlock new opportunities for both local and international investors.

Jaber bin Ayed Al-Fahad has been appointed as the chairman of the committee, with Saad bin Ajlan Al-Ajlan serving as vice chairman. Together, they will lead efforts to strategically position Saudi Arabia’s energy and petrochemical sectors for growth, aligning with the Kingdom's broader economic and industrial goals.

The committee will focus on several critical areas, including the promotion of renewable energy projects, with the ambitious target of achieving 50 percent renewable energy capacity by 2030. Additionally, the committee will oversee localization programs aimed at increasing local content in the energy sector, with a target of achieving 75% local content.

These initiatives are integral to Saudi Arabia's overarching plan to transition towards a more diversified and sustainable economy, less reliant on oil exports, while also positioning the Kingdom as a global leader in advanced energy solutions.

Energy remains a cornerstone of Saudi Arabia’s economy, contributing approximately 40% of the country's GDP. The energy sector not only drives growth in critical industries like manufacturing, logistics, and mining but also serves as a catalyst for broader economic diversification efforts outlined in Saudi Vision 2030.

The petrochemical sector plays a central role in Saudi Arabia's economic diversification strategy. With a robust annual production capacity exceeding 118 million tonnes, the Kingdom's petrochemical industry has expanded rapidly in recent years, bolstered by ongoing investments in infrastructure, technological advancements, and capacity enhancement.

The formation of the national energy and petrochemical committee is aligned with Saudi Arabia's broader economic diversification strategy, which seeks to reduce the Kingdom's dependence on oil revenues and foster growth in other sectors. This push for diversification is also being supported by large-scale investments in the petrochemical industry, including the construction of new facilities, the expansion of existing ones, and the adoption of innovative technologies to improve efficiency and sustainability.