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OPEC International Seminar to Tackle Market Stability Amid Growing Challenges

The OPEC logo is seen at the entrance to the organization headquarters. (Reuters)
The OPEC logo is seen at the entrance to the organization headquarters. (Reuters)
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OPEC International Seminar to Tackle Market Stability Amid Growing Challenges

The OPEC logo is seen at the entrance to the organization headquarters. (Reuters)
The OPEC logo is seen at the entrance to the organization headquarters. (Reuters)

The OPEC+ energy ministers are scheduled to meet with oil industry CEOs at the 8th OPEC International Seminar to discuss global energy security, plans for energy transition, and investment challenges facing the sector.

OPEC Secretary-General Haitham al-Ghais said the International Seminar "Towards a Sustainable and Inclusive Energy Transition" has an outstanding record for both the caliber of participants and the high level of discussions that take place on the leading issues affecting the energy sector, especially at this critical time in the global industry.

"We are looking forward to welcoming all our guests to Vienna for what will be a truly memorable and informative event," he added.

The global energy sector is going through several challenges, most notably the sustainability of supplies with plans by some countries to abandon fossil fuels, which could lead to a decline in supply.

Global economic slowdown looms on the horizon due to adverse financial data from China, the world's second-largest economy and the world's largest energy consumer.

Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC and OPEC+ are seeking to balance oil markets to ensure energy security.

UAE Minister of Energy, Suhail al-Mazrouei said OPEC and its allies in OPEC+ always strive to ensure a balance in market fundamentals between supply and demand to avoid an accumulation in global oil inventories that could lead to instability and speculative activities in international markets.

In a statement to the UAE's state news agency WAM ahead of the OPEC seminar, Mazrouei stated that OPEC's technical team constantly monitors variables in global oil markets and presents its recommendations to the ministerial committee to make appropriate decisions, which can help improve market stability and drive sustainable growth.

The Seminar is an important global platform for forecasting and shaping the future of the worldwide energy sector, with the participation of oil-producing and consuming countries, energy sector leaders, and experts from around the world, he added.

The minister noted that it would contribute to a fair and realistic energy transition towards a more sustainable future and ensure reliable energy supplies by utilizing the latest tech solutions in this vital sector.

Saudi Arabia said it would extend its voluntary oil output cut of one million barrels per day (bpd) for another month to include August, adding that the amount could be extended beyond that month.

It is part of precautionary measures that could limit fluctuations and boost OPEC+ efforts in supporting and stabilizing the markets amid pessimistic global economic data.

The US Federal Reserve expects the rate hike to continue, and OPEC expects an increase in global energy demand to 110 million barrels per day and that total energy demand will increase by 23 percent by 2045.

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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s economy continued its upward trajectory in 2024, solidifying its status as one of the world’s most stable and fastest-growing markets. This momentum is being driven by the Kingdom’s unwavering commitment to economic diversification — a central pillar of Vision 2030 — which has significantly boosted non-oil sectors, expanded private sector participation, and increased the economy’s ability to generate jobs and attract investment.

Non-oil activities now contribute a record 51% to real GDP, marking a major milestone in the country’s transformation journey.

According to the Vision 2030 annual report, Saudi Arabia’s real non-oil GDP grew by 3.9% in 2024 compared to the previous year, fueled by ongoing investments across diverse sectors. Non-oil activities alone expanded by 4.3% year-on-year, reflecting the success of structural reforms and strategic national programs.

At the heart of Vision 2030 is the ambition to build a thriving economy. One of the key benchmarks is improving Saudi Arabia’s position in global GDP rankings. In 2016, the Kingdom ranked 20th worldwide. By 2030, it aims to break into the top 15, with a targeted GDP of SAR 6.5 trillion ($1.7 trillion).

In early 2024, Saudi Arabia adopted a new moving-chain methodology to measure GDP more accurately. Under this updated system, real GDP has grown consistently since 2016 at a compound annual rate of 1.75%, excluding the pandemic-induced downturn in 2020. Non-oil GDP, meanwhile, has shown even stronger performance, expanding at a 3.01% annual pace over the same period.

While the 2024 non-oil GDP target was narrowly missed, the outcome reached 98% of the goal — a strong showing amid global uncertainties. Leading contributors included wholesale and retail trade, hospitality, transportation, logistics, and information technology.

Non-oil exports also played a pivotal role in economic growth, achieving over 75% of their annual targets. Gains came primarily from increased exports of non-oil goods and a sharp rise in re-exports, underlining Saudi Arabia’s growing role in global trade flows.

The private sector’s role in the economy has expanded significantly, with its contribution to GDP reaching 47% — surpassing the 2024 target. Since 2016, this contribution has grown at a compound annual rate of 1.94%.

This progress reflects ongoing efforts to reduce reliance on oil, empower private enterprise, and enhance the Kingdom’s global competitiveness. Key initiatives include national strategies aimed at unlocking sectoral potential, the Public Investment Fund’s push to stimulate private capital, and the successful drive to attract global companies to relocate their regional headquarters to Saudi Arabia.

The government continues to foster a dynamic business environment, supporting small and medium enterprises (SMEs) through regulatory reforms and major development projects. These efforts span several sectors, including manufacturing, transport, logistics, and foreign investment.

Global Confidence, Positive Outlook

International confidence in the Saudi economy remains strong. In 2024, the world’s top three credit rating agencies affirmed the Kingdom’s sovereign creditworthiness. Moody’s assigned a rating of “Aa3” with a stable outlook; Fitch rated it “A+” with a stable outlook; and S&P awarded an “A/A-1” rating, also with a stable outlook.

Global institutions are also optimistic about the Kingdom’s growth prospects. The Organisation for Economic Co-operation and Development (OECD) forecasts Saudi economic growth at 3.8% in 2025 and 3.6% in 2026 — well above the global average.