Saudi Arabia to Boost Role of Petrochemical Sector in National Economyhttps://english.aawsat.com/business/4400616-saudi-arabia-boost-role-petrochemical-sector-national-economy
Saudi Arabia to Boost Role of Petrochemical Sector in National Economy
A Saudi Aramco sign is pictured at an oil facility in Abqaiq, Saudi Arabia, October 12, 2019. (Reuters)
Saudi Aramco and France's TotalEnergies awarded Engineering, Procurement, and Construction (EPC) contracts for the $11 billion "Amiral" complex, a petrochemicals facility expansion at the SATORP refinery.
The new deal is a step towards Riyadh's expansion in promoting petrochemical products for the future and boosting its role in the national economy.
The award of EPC contracts for primary process units and associated utilities marks the start of construction work on the joint petrochemical expansion following the final investment decision in December 2022.
The signing ceremony was attended by Aramco CEO Amin Nasser, TotalEnergies CEO Patrick Pouyanne, Minister of Land, Infrastructure and Transport of South Korea Won Hee-ryong, government officials from Saudi Arabia, France, and South Korea, and company executives from Aramco, TotalEnergies and EPC firms.
Mixed values
The new complex will be integrated with the existing SATORP refinery in Jubail. It aims to house one of the giant mixed-load steam crackers in the Gulf, which can produce 1,650 kilotons per annum of ethylene and other industrial gases.
The expansion is expected to attract more than $4 billion in additional investment in various industrial sectors, including carbon fibers, lubes, drilling fluids, detergents, food additives, automotive parts, and tires. It is also expected to create around 7,000 local direct and indirect jobs.
Industry
Nasser said that the SATORP complex has proven over the past years that it is among the best in the Middle East regarding operational, commercial, and environmental performance.
He expected the new project to add value to the refining, chemicals, and marketing system in the country and worldwide, especially in converting liquids into chemicals.
He indicated that the Amiral project also contributes to the development of the industrial system, in line with Saudi Vision 2030.
For his part, Pouyanne said that the expansion project reinforces the exemplary relationship that the two companies have enjoyed for several decades in Saudi Arabia.
SATORP CEO Abdullah al-Suwailem told Asharq Al-Awsat that the project achieves sustainability and supports the national industry by converting part of the fuel into petrochemical products to support the national economy.
JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stabilityhttps://english.aawsat.com/business/5259042-jmmc-holds-65th-meeting-videoconference-discusses-energy-security-and-market
JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
The Joint Ministerial Monitoring Committee (JMMC), comprising Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Nigeria, Algeria and Venezuela holds its 65th Meeting via videoconference.
The JMMC reviewed current market conditions and emphasized the essential role of the Declaration of Cooperation (DoC) in supporting the stability of global energy markets, according to SPA.
In this context, the committee highlighted the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy.
It also expressed concern regarding attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability.
Accordingly, the committee stressed that any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility and weaken the collective efforts under the DoC to support market stability for the benefit of producers, consumers, and the global economy.
In this regard, the committee commended the DoC countries that took the initiative to ensure the continued availability of supplies, particularly through the use of alternative export routes, which have contributed to reducing market volatility.
The JMMC will continue to closely monitor market conditions and retains the authority to convene additional meetings or request an OPEC and non-OPEC Ministerial Meeting, as established at the 38th ONOMM held on December 5 2024.
The next meeting of the JMMC (66th) is scheduled for June 7, 2026.
Saudi Market Edges Higher on Insurance and Basic Materials Supporthttps://english.aawsat.com/business/5259028-saudi-market-edges-higher-insurance-and-basic-materials-support
Saudi Market Edges Higher on Insurance and Basic Materials Support
An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
Saudi Arabia’s benchmark Tadawul All Share Index (TASI) edged up 0.03 percent to 11,272 points on Sunday, supported by insurance and basic materials stocks. Total traded value reached SAR 4.27 billion ($1.1 billion).
Shares of Petro Rabigh and The National Shipping Company of Saudi Arabia (Bahri) rose 1 percent and 1.5 percent to SAR 10.9 and SAR 32.6, respectively.
Saudi Arabian Amiantit Co. (Amiantit) led gainers, rising 10 percent to SAR 15.63. In the materials sector, SABIC and Maaden advanced 0.84 percent and 0.46 percent to SAR 60.05 and SAR 65.7, respectively.
In insurance, The Company for Cooperative Insurance (Tawuniya) and Bupa Arabia climbed 1 percent and 2 percent to SAR 127.3 and SAR 174.1, respectively. Almarai rose 1.2 percent to SAR 44.48 after reporting its Q1 2029 results.
On the downside, Saudi Aramco—the index heavyweight—declined 0.22 percent to SAR 27.54.
ACWA Power fell about 1 percent to SAR 168 after announcing last week a temporary curtailment of power output at two of its solar projects. Emaar The Economic City (Emaar EC) was the biggest decliner, falling 7.6 percent to SAR 10.88.
Saudi Airports Serve as Safety Valve for Regional Air Traffic as ‘Hormuz Fallout’ Hits Global Aviationhttps://english.aawsat.com/business/5259004-saudi-airports-serve-safety-valve-regional-air-traffic-%E2%80%98hormuz-fallout%E2%80%99-hits
Saudi Airports Serve as Safety Valve for Regional Air Traffic as ‘Hormuz Fallout’ Hits Global Aviation
King Khalid International Airport in Riyadh (SPA)
Conflicts in the region are no longer confined to the geography of battlefields; their fallout has reached one of the world’s most vital and sensitive industries: aviation. Today, travelers and airlines alike face a harsh reality driven by record surges in jet fuel prices and a steep spike in insurance costs, pressures that have pushed ticket prices higher, threatening a severe economic squeeze that could derail global tourism plans and reshape travel patterns long taken for granted.
The surge in aviation costs cannot be separated from the turmoil in global energy markets. The link between crude oil and jet fuel prices peaked in early April 2026. As market confidence wavered amid US military threats, crude prices jumped to record levels due to the direct risk to supplies through the Strait of Hormuz, setting off an immediate spike in jet fuel prices. Given that jet fuel is among the most valuable refined products from a barrel of oil, these unprecedented crude levels pushed aviation fuel to nearly double its 2025 levels.
Compound pressures and a tourism slowdown
In remarks to Asharq Al-Awsat, aviation and airport management expert AlMotaz Al-Mirah said the current tensions, in an industry already operating on thin margins, are quickly reflected in both pricing and demand across the tourism sector.
“The rise in ticket prices today is not driven by a single factor,” he said, “but by a combination of pressures: higher fuel consumption, longer routes, elevated insurance costs, and reduced operational efficiency.”
The World Travel & Tourism Council confirmed that “the escalating conflict in Iran is already impacting travel and tourism across the Middle East by no less than $600 million per day in international visitor spending, as disruptions to air travel, traveler confidence, and regional connectivity weigh on demand.”
According to council data released in March, the Middle East plays a critical role in global travel, accounting for 5 percent of international arrivals and 14 percent of global transit traffic. Any disruption reverberates worldwide, affecting airports, airlines, hotels, car rental firms, and cruise lines.
The family travel bill
On leisure travel, Al-Mirah said fare increases have ranged from 15 percent to 70 percent across many routes- higher still on long-haul flights.
“A ticket that used to cost $500 now ranges between $800 and $1,000,” he noted, “meaning an increase of up to $2,000 for a family of four.” This is forcing many travelers to delay trips or opt for closer destinations, reshaping demand across regional markets.
He detailed the price surge since the crisis began in late February: jet fuel rose from around $85–90 per barrel to between $150 and $200. This has driven the cost per flight hour for long-haul aircraft from an average of $10,000 to more than $18,000 in some cases. A flight carrying 180 passengers could see total additional costs of about $15,000, forcing airlines to add roughly $80 per ticket just to break even.
Globally, Brazil’s Petrobras raised jet fuel prices by about 55 percent in early April, while the Philippines warned that some aircraft could be grounded due to fuel shortages, and Taiwanese carriers are preparing to increase international fuel surcharges by 157 percent.
Longer routes, heavier maintenance burdens
Al-Mirah explained that longer flight times to avoid unstable airspace carry steep financial costs, with each additional hour adding between $5,000 and $7,500. Route changes extending flight durations by one to two hours have increased fuel consumption by up to 30 percent. More time in the air also accelerates engine wear.
The strain goes beyond fuel. Increased flight hours speed up the deterioration of engines and components, bringing forward maintenance schedules and raising annual servicing costs- ultimately reducing fleet efficiency.
Airlines are also grappling with sharply higher war-risk insurance premiums. While such costs typically account for no more than 1 percent of total operating expenses, they have surged by between 50 percent and 500 percent in the current crisis, according to a March 2026 report by Lockton.
This buildup of fuel and insurance costs threatens to turn profitable routes into loss-making ones, potentially forcing cash-strapped or low-cost carriers to suspend some routes temporarily to preserve financial stability.
An aircraft from Riyadh Air at Le Bourget Airport (Reuters)
Saudi airports support regional air traffic
Amid these complexities, Saudi Arabia’s General Authority of Civil Aviation has deployed its capabilities to activate regional support protocols. Gulf airlines have shifted logistical operations to Saudi airports to keep regional air traffic safe and moving.
The authority announced that the Kingdom received more than 120 flights from neighboring countries’ carriers between February 28 and March 16, including Qatar Airways, Iraqi Airways, Kuwait Airways, Jazeera Airways, and Gulf Air.
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