Saudi Arabia poised for $600bn inflow into petrochemicals sector

Investments into Saudi Arabia’s petrochemicals sector are expected to reach $600 billion by 2030, investment minister Khaled Al Falih told the Saudi-Japanese Investment Forum in Riyadh.

“We will continue our joint investment and partnership in developing the hydrocarbon sector while looking forward to expanding our joint ventures in the future of new energy,” he added.

Japan announced the world’s first national hydrogen strategy in 2017, aiming to increase hydrogen supplies to 12 million tonnes annually by 2040.

Al Falih disclosed Saudi Arabia’s determination to become the world’s largest centre for clean hydrogen production and export, with Japan being the first recipient of the kingdom’s blue ammonia shipment.

He added that the kingdom wants to use Japanese shipbuilding technology for its competitive advantage in the industrial city of Ras Al-Khair, a special zone for maritime industries.

Japan was the first nation to build a liquefied hydrogen carrier ship.

During a trip to the region in July, Japan’s prime minister, Fumio Kishida, met GCC secretary general Jasem Mohamed Al Budaiwi and agreed to resume negotiations on a free trade agreement.

Japan aims to strengthen relations with oil producers in the Middle East to ensure a stable energy supply. It relies on the GCC states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – for over 90 percent of its crude oil.