Saudi Arabia launches major dairy cluster in Al-Kharj

JEDDAH: A regional drive to cut carbon emissions in the oil and gas sector gained fresh momentum this week as the second symposium on downstream decarbonization opened in the Saudi capital, drawing high-level participation from international energy companies, industry experts, and policymakers.

Organized by the Organization of Arab Petroleum Exporting Countries and held under the patronage of Saudi Energy Ministry, the event—titled “Pathways to Reducing Carbon Emissions in Downstream Petroleum Industries”—builds on the success of its inaugural edition last June.

The symposium aims to advance strategies for curbing emissions in refining and petrochemical operations, reaffirming OAPEC’s commitment to sustainable energy development while fostering both regional and global collaboration.

Central to discussions is the challenge of balancing environmental goals with the continued strategic role of hydrocarbons in the global energy mix.

Opening the event, Saudi Arabia’s Deputy Minister for Sustainability and Climate Change Khalid Al-Mehaid highlighted the organization’s evolving vision.

He praised OAPEC’s decision to rebrand as the “Arab Energy Organization,” a move he said reflects a broader commitment to embracing all forms of energy to better serve the region’s long-term development goals.

He underscored the need for deep decarbonization strategies to safeguard energy security, protect the environment, and drive economic growth, according to the Saudi Press Agency.

Al-Mehaid emphasized the importance of integrated carbon management solutions, pointing to the role of the International Energy Forum in fostering collaboration between energy-producing and consuming nations in the face of the global energy trilemma.

With COP30 fast approaching, he called on Arab countries to move beyond negotiations and toward actionable climate cooperation, urging the adoption of science-driven solutions to meet net-zero emission targets.

OAPEC Secretary-General Jamal Al-Loughani also commended the Saudi Ministry of Energy for its central role in shaping the event’s direction.

He credited the leadership of Prince Abdulaziz bin Salman for driving the success of the symposium’s inaugural edition and setting the stage for its second iteration.

According to the SPA report, Al-Loughani noted that these collaborative efforts have significantly advanced both Arab and global dialogues on emissions reduction, particularly in refining the technical and technological approaches needed to meet climate goals.

Al-Loughani noted that the symposium comes at a pivotal moment, as the oil and gas sector faces mounting environmental challenges.

He emphasized that member states are actively working to transition toward a low-emissions economy through strategic investments in renewable energy, carbon capture and reuse technologies, and improved operational efficiency.

Al-Loughani also highlighted pioneering initiatives led by the Kingdom, including the Saudi Green Initiative and the Middle East Green Initiative. He commended similar efforts across the region, citing the UAE’s Al-Reyada carbon capture project, alongside notable programs in Algeria, Kuwait, Qatar, Iraq, Egypt, and Bahrain.

Mohammed Eid Al-Suraihi, president of the Arab Council for Creativity and Innovation, underscored the vital role of linking innovation with industrial solutions and stressed the importance of civil society participation in environmental awareness campaigns, according to the SPA.

He further emphasized that innovation remains key to building a more sustainable future for the petroleum sector.

Ali Al-Samawi, a senior energy analyst and representative of IEF Secretary-General Jassim Al-Shirawi, warned of unprecedented global challenges in decarbonizing the downstream petroleum industry. He pointed to circular carbon economy models, carbon markets, artificial intelligence-driven energy efficiency, and carbon capture, utilization, and storage technologies as essential tools for transformative change and unlocking future investment.

The symposium closely aligns with Saudi Arabia’s broader sustainability efforts, particularly through the Saudi Green Initiative and Middle East Green Initiative—both aimed at reducing carbon emissions and expanding renewable energy adoption.

The Kingdom has committed to achieving net-zero greenhouse gas emissions by 2060, a goal announced by Crown Prince Mohammed bin Salman during the 2021 Saudi Green Initiative Forum.

Saudi Arabia’s focus on decarbonizing its oil and gas sector—especially through advanced technologies like carbon capture — complements the symposium’s core agenda and reinforces the country’s leadership in promoting regional and international climate cooperation ahead of COP30.

According to SPA, the symposium drew broad participation, including representatives from OAPEC member states, international organizations, and over 15 leading global firms specializing in emissions reduction technologies.

Delegates from around 20 Arab and foreign countries attended, with nearly 140 experts and stakeholders present. The event featured 23 technical papers showcasing the latest innovations and strategies in emissions mitigation.

RIYADH: Saudi Arabia’s mining sector is emerging as a global standout, supported by regulatory reforms, major investment, and a strong pipeline of domestic projects, a new analysis said. 

In a report titled “Saudi Arabia Doubles Down on Mining,” S&P Global Ratings said the sector is poised for rapid expansion, with its contribution to gross domestic product expected to surge from $17 billion in 2024 to $75 billion by 2030, under the government’s Vision 2030 strategy. 

Saudi Arabia’s mining ambitions are anchored in its substantial natural endowments and reinforced by robust government support. The country holds an estimated SR9.37 trillion ($2.5 trillion) in mineral reserves — a 90 percent increase on a 2016 forecast — thanks to new discoveries of rare earth elements, base metals, and expanded phosphate and gold deposits. 

Hina Shoeb, credit analyst at S&P Global Ratings, said: “Saudi Arabia's proactive measures and substantial resources may help offset continued cost pressures and support the resilience of metals and mining companies’ credit profiles.”  

The agency noted that unlike many global peers, Saudi Arabia’s metals and mining companies benefit from strong government support, a modern regulatory framework — including the Mining Investment Law — and substantial state-led investment in mega projects and infrastructure. 

The number of exploitation licenses has increased by 138 percent since 2021, and exploration permits rose from 58 to 259, driven by the law’s transparency and investor-friendly policies.  

Flagship state-owned enterprise Ma’aden reported SR32 billion in 2024 revenues, with a diversified portfolio spanning gold, phosphate, aluminum, and base metals. Its gold output alone reached 450,000 ounces, while phosphate production surpassed 6.5 million tonnes.   

The number of exploration firms has grown from just six in 2020 to 133 in 2023. “As budgets continue to increase, the likelihood of discovering additional resources and expanding existing operations supports our view of sustainable, long-term growth of Saudi Arabia’s metals and mining industry,” the report said.  

The Vision 2030 framework has driven a shift away from oil dependency, focusing instead on sectors like mining, tourism, and manufacturing.   

The mining sector alone contributed about $400 million in revenues as of 2023 and is now backed by a $100 billion investment plan targeting critical minerals by 2035.   

Government funding also includes a SR29 billion commitment to the Wa’ad Al-Shamal phosphate project.  

Saudi Arabia’s geography offers logistical advantages with access to European, Asian, and African markets, while mega projects such as NEOM and Qiddiya are expected to drive up local demand for construction materials and high-value metals.   

These projects, the report stated, “which benefit from funding and infrastructure investments, aim to reduce the country’s import costs for metals, including iron, steel, precious and semi-stones, by creating a solid domestic market for metals and minerals.”  

However, the report also notes infrastructure and labor as potential bottlenecks. Many deposits are in remote desert regions lacking adequate transportation and water infrastructure.   

Additionally, the sector’s expansion will require substantial investments in workforce training to avoid high labor costs from foreign recruitment.  

S&P states that Saudi Arabia’s commitment to financial discipline, low debt levels in the sector, and targeted policy support position the Kingdom’s mining industry to grow sustainably — even amid volatile commodity markets.   

“We expect these initiatives will spur domestic demand for metals, reduce import dependency, and over time improve the sector's operational efficiency,” S&P added.