OAPEC Secretary General: World Economy Will Fall in Deep Slump without Oil, Gas

Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
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OAPEC Secretary General: World Economy Will Fall in Deep Slump without Oil, Gas

Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)

Jamal Issa Al-Loughani, Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC), predicted that the world would become primitive if oil-producing countries listened to climate activist demands and stopped producing gas and oil.

He said the world will witness major power outages, companies would be forced to close and global trade would come to a halt.

Without fuel, supply chains that primarily rely on trucks, railways and marine shipping will come to a stop, he told Asharq Al-Awsat.

Moreover, this will lead to the collapse of the global health system that relies on oil and gas in operating hospitals and transporting patients. The collapse will extend to the production of medicine, equipment and medical supplies, he added.

Ultimately, the world will fall into a deep global slump, he warned.

He remarked however, that given this bleak outlook, the scenario is highly unlikely to unfold.

“We must stress that there can be no imagining a global economy that is not driven by the main engine that is the oil and gas industry,” he declared.

Oil and gas are the main factors on which economic relations between nations are based, providing millions of jobs across the globe, Al-Loughani said.

He noted, however, the growing number of challenges in developing the oil industry and coordinating energy policies between OAPEC member states. He cited unified efforts to secure the delivery of oil to markets through fair and reasonable conditions and providing the suitable conditions for capital and investors in the petrol industry among members.

This is one of the main goals of OAPEC, he remarked. One of the hurdles facing it, he continued, are misleading calls for reducing investments in oil and gas related to the environment and climate change.

He said there is a great insistence on tying an emissions-free environment to reducing the consumption of oil and gas. These calls omit the fact that producing oil and gas and controlling emissions through clean technologies help reach the goal of net-zero emissions by 2050.

OAPEC has indeed started to implement this in recent years as part of the aim to bolster sustainable energy systems and contribute to the global climate change efforts, Al-Loughani added.

OAPEC was founded by Saudi Arabia, Libya and Kuwait in Beirut in 1968. It is based in Kuwait and its founding was viewed as an Arab accomplishment amid trying conditions that followed the 1967 war.

Energy and emissions

Al-Loughani stressed that the oil and gas industry played a major role in the growth of the global economy in recent decades.

In spite of the pressure it is coming under by some countries that had initially backed it, the industry will certainly continue to play its role in the future, he stated.

He emphasized that OAPEC has started to meet global trends related to reducing carbon emissions.

He noted the constant investment, innovation and development of clean technologies, such as carbon capture and storage.

Al-Loughani remarked however, that demand on oil and gas will continue to remain great in the global energy mix despite the rise in the share of renewable energy, especially solar and wind power.

Oil markets

On the drop in investments in the oil sector after some countries shifted to clean energy, Al-Loughani acknowledged the decline, especially in production and exploration, which will lead to a slowdown in the growth of global reserves.

This in turn may impact overall supplies to meet growing demand and consequently lead to rises in energy prices, he predicted.

He revealed that oil exploration and production investments reached around 397.6 billion dollars in 2023, meaning there is a gap estimated at over 17 percent in investments needed to meet global oil demand until 2045, which is estimated at 480 billion dollars annually, according to OPEC.

So, there is a need to bolster investments in the oil industry overall to avoid jeopardizing global energy security and increase inflation, which will in turn slow down the shift towards a clean sustainable energy system, he urged.

Arab reserves

On the role of Arab countries, specifically Saudi Arabia, in securing oil supplies to the global energy market, he said they are playing a main role to that end given their massive reserves and share of global production.

He stressed that Saudi Arabia constantly strives to ensure the security of oil supplies and provide trusted sources of energy, especially when it comes to economic development, while confronting the challenges of climate change.

This has been demonstrated in Saudi Arabia’s pioneering efforts in founding OPEC+ and ensuring its success. He also cited the precautionary measures taken by the group to support the stability and balance of the global oil market through additional voluntary reductions on production.

Such measures are necessary to achieve sustainable growth in the global economy, he added.

He also noted Saudi Arabia’s cooperation with its partners in the G20 with the aim of achieving common interests and maintaining fair costs for all effective parties in the energy market, from producers, investors and consumers. These efforts were highlighted during the COVID-19 pandemic.



Saudi Arabia Plans to Establish Specialized Courts to Boost Investment Climate

King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Plans to Establish Specialized Courts to Boost Investment Climate

King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)

Saudi Arabia is exploring the establishment of specialized courts to enhance its investment environment, aligning with the goals of the National Investment Strategy and Vision 2030. This initiative aims to support development and improvement efforts tailored to the needs and aspirations of investors.
The Kingdom has undergone an unprecedented transformation, implementing over 800 reforms to date. These include the Civil Transactions Law, the Bankruptcy Law, the Public-Private Partnership Program, and the Government Tenders and Procurement Law, which have collectively positioned Saudi Arabia as the 16th most competitive nation globally, according to the IMD World Competitiveness Index.
According to information available to Asharq Al-Awsat, the Ministry of Investment is currently consulting public and private entities to assess the necessity of specialized investment courts. This initiative focuses on improving investors’ interactions with the Kingdom’s judicial system amidst rapid legislative advancements, with the aim of bolstering Saudi Arabia’s status as a leading regional and global investment destination.
To ensure effective planning, the Ministry is working closely with key government agencies operating in strategic sectors. It has requested detailed input from relevant bodies, involving decision-makers to contribute to the project.
In August 2024, Saudi Arabia announced an updated investment law set to take effect in early 2025. This framework is designed to attract global investments, enhance the competitiveness of the local investment climate, support economic diversification, and create job opportunities, all in alignment with Vision 2030 and the National Investment Strategy.
The updated law is a cornerstone of the National Investment Strategy launched by Crown Prince Mohammed bin Salman. It aims to drive development, diversify the economy, and attract more than $100 billion annually in foreign direct investment by 2030.
The law enhances investor rights by ensuring fair treatment, protecting intellectual property, and allowing freedom in investment management and seamless capital transfers. It also provides transparency and clarity in processes, aligning with global best practices to foster a trustworthy investment environment. Simplified procedures now replace the previous licensing system, offering greater protection, flexibility, and confidence to investors conducting business in the Kingdom.
Saudi Minister of Investment Khalid Al-Falih emphasized that the updated law is part of broader reforms demonstrating the Kingdom’s commitment to creating a supportive and secure environment for both local and foreign investors. These efforts include adopting global best practices and revising the Foreign Investment Law, which was introduced 25 years ago, to develop a comprehensive investment framework that serves both Saudi and foreign investors.