Saudi Arabia’s plans to increase oil production capacity while also working towards becoming a net-zero economy by 2060 are given wide-ranging analysis in a new report just produced by the global research and advisory firm Oxford Business Group(OBG).
The Report: Saudi Arabia 2022 maps out efforts under way in the Kingdom to take advantage of its plentiful reserves and low production costs to boost oil output beyond 13m bpd within the next five years, contributing to global energy security in the process. With the Kingdom remaining committed to long-term carbon neutrality, the report also analyses the viability of plans to expand renewable energy capacity and scale up the use of carbon capture and storage technology.
Elsewhere, it charts the expansion taking shape within key industrial segments such as manufacturing, petrochemicals and mining, as the Kingdom strives to utilise its hydrocarbon and mineral resources to develop productive downstream industries.
Efforts to enhance the attractiveness of Riyadh as a regional business hub are another key area of focus, with the report looking closely at how the government is incentivising multinational companies to establish their regional headquarters in the capital city to boost capital inflows and job creation.
The national drive to further develop the digital economy is another key theme of the report, with coverage of the rapid advances made during the pandemic to facilitate business and educational continuity, as well as the areas ripe for growth, such as network development, big data analytics, mobile technologies and gaming.
In addition, the report includes a first-time chapter on innovation, which examines the country’s progress in transitioning to a knowledge-based economy and addressing national challenges through research and development.
Another newly introduced chapter focuses on the burgeoning entertainment sector and its potential to stimulate investment and job creation, as well as improve residents’ quality of life and boost the tourism industry.
It also features interviews with a broad range of high-profile business and political leaders, including: Hamad Al Sheikh, former Minister of Education; Mohammed Al Rumaih, CEO, Saudi Exchange; Turki Al Shehri, CEO, Engie Saudi Arabia; and Suliman Almazroua, CEO, National Industrial Development and Logistics Programme.
Commenting after the launch, Oliver Cornock, Editor-in-Chief, OBG, said that although Saudi Arabia is benefiting from elevated global oil and gas prices, non-oil growth remains robust, buoyed by ongoing diversification efforts and the effective national response to the pandemic.
“Attracting investment for downstream industrial production and export capacity is set to remain a priority for the Kingdom alongside the expansion of high-potential service industries such as tourism and entertainment. This diversified approach to economic development is already yielding positive results, with the Kingdom projected to be among the fastest-growing G20 economies this year,” he said.
Simona Simeonova, OBG’s Country Director for Saudi Arabia, added that far-reaching social and educational reforms were expected to play a key role in readying the next generation for a globally competitive workplace.
“Steps are being taken to radically restructure the education system, with teaching methods and curricula in the midst of an overhaul,” she said. “While improving student attainment is a key aim, our report points to several other areas set for increased focus, including innovation and technological proficiency, which align with Vision 2030 goals.”
The Report: Saudi Arabia 2022 has been produced with the King Abdulaziz City for Science and Technology, the General Entertainment Authority, KPMG, Eyad Reda Law Firm, Research Development and Innovation Authority, SIDF, HSBC, General Authority for Statistics and Jeddah Chamber. It marks the culmination of more than six months of field research by a team of analysts from OBG. The publication assesses trends and developments across the economy, including those in macroeconomics, infrastructure, banking and other areas.
The Report: Saudi Arabia 2022 is available online and in print. It is one of several highly relevant, go-to research tools being produced by OBG, which include Future Readiness and ESG Intelligence reports, alongside a range of Growth and Recovery Outlook articles and interviews.
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