Saudi Arabia’s Petrochemical Sector Thrives with Ministry’s Digital Platform
In a groundbreaking move, Saudi Arabia’s petrochemical sector has received a significant boost through the Ministry of Industry and Mineral Resources’ digital platform, which has successfully delivered over 100,000 tonnes of raw materials to local factories.
Revolutionizing the Industry
Launched in mid-2023, the platform, known as “Availability and Competitiveness of Petrochemical Raw Materials,” aims to address challenges related to surplus raw materials and competitiveness issues stemming from price disparities. In its first year, the initiative processed over 60 requests from local factories, enhancing coordination between basic and conversion companies, as well as government agencies.
Driving Efficiency and Integration
Jarrah bin Mohammed Al-Jarrah, spokesperson for the ministry, credited the platform’s success to its effective coordination among various stakeholders. By establishing official channels for over 2,500 factories across more than 40 industrial zones, the platform has significantly improved supply chain and operational efficiency, ultimately boosting factory output and exports.
Aligned with Vision 2030
The initiative aligns with Saudi Arabia’s economic goals outlined in Vision 2030, with the country’s mineral wealth estimated at SR9.4 trillion ($2.5 trillion) as of April 2024. Operating under the Petrochemical Supply Chain Integration Committee, the program aims to synchronize the availability of petrochemical raw materials with the needs of the industry, driving growth in efficiency, local content, and exports.
Driving Industrial Advancements
As Saudi Arabia continues to advance its industrial capabilities, the digital tool for petrochemical raw materials represents a crucial step toward achieving greater integration and efficiency within the sector. The ministry’s goal to strengthen the sector aligns with the Kingdom’s ambition to establish mining as a cornerstone of its industrial strategy, solidifying its position as a key player in the global petrochemical market.