Abdulaziz bin Salman: Saudi Arabia Plans to Enrich, Sell Uranium

Saudi Arabia is actively pursuing investments in mineral resources, including uranium enrichment and sales, as part of its broader strategy to achieve 130 gigawatts of renewable energy capacity, ensuring a 20% energy reserve.

Saudi Energy Minister Prince Abdulaziz bin Salman announced these plans during the eighth edition of the In-Kingdom Total Value Add (IKTVA) Forum and Exhibition, organized by Aramco. The event witnessed the signing of 145 agreements and memorandums of understanding worth approximately SAR 33.75 billion ($9 billion), with the aim to promote localization of goods and services, foster collaboration, and strengthen local content in supply chains.

The IKTVA 2025 forum, held under the theme “Ecosystem of Opportunities,” showcased the growth of local supply chains, the progress of key enabler projects, and cooperation to further develop the local supply ecosystem.

During his address, the Energy Minister stated: “Saudi Arabia will enrich, sell, and produce uranium yellowcake,” a refined uranium concentrate used as fuel for nuclear reactors.

He emphasized the nation’s wealth of rare minerals, including uranium, saying: “For anyone doubting our mining capabilities, we will mine, process, and enrich uranium—and achieve even more.”

He highlighted that ensuring the availability of critical materials is essential for energy security, as Saudi Arabia continues to prioritize the stability of oil supply.

The minister also stressed the Kingdom’s goal of reaching 130 gigawatts of renewable energy capacity to meet its anticipated economic growth, which he said is expected to exceed current projections. “Without energy, there can be no prosperous or productive future,” he said.

Prince Abdulaziz emphasized the importance of expanding oil and gas operations, stating that Saudi Arabia is entering a fourth phase of gas system development in collaboration with Aramco. He highlighted efforts to localize advanced technologies developed over the past few years.

The petrochemical industry, he noted, will play a pivotal role in the future, stating: “Its significance extends beyond plastics to include a wide range of materials and polymers that will be produced.”

He also underscored the importance of localizing energy supply chains to boost the national economy through collaboration and innovation, creating new opportunities that align with national goals.

Regarding the IKTVA program, the minister described it as a model initiative that has transitioned from local content development to full-fledged localization. He also touched on Saudi Arabia’s Sustainability Program for Petroleum, launched in 2020, which aims to sustain and grow demand for hydrocarbons as a competitive energy source while ensuring an efficient and sustainable energy transition.

Saudi-Egyptian Cooperation

Prince Abdulaziz also highlighted ongoing efforts to establish a roadmap for cooperation with Egypt in electricity. Egyptian Minister of Electricity and Renewable Energy Mahmoud Esmat previously announced that the Saudi-Egyptian electricity interconnection project would begin operations before the summer of 2024.

Esmat noted that efforts are underway to complete the project, with a task force formed to resolve any obstacles. The two nations are working together to expand investments in renewable energy, particularly solar and wind, and to exchange technical expertise in electricity generation, transmission, and distribution.

Strengthening Local Industries

Aramco President and CEO Amin Nasser revealed plans to increase energy production by 70%, which will contribute to job creation in Saudi Arabia. He highlighted the establishment of over 500 factories since 2015, which have collectively generated $250 million in revenue.

Nasser emphasized Aramco’s extensive industrial projects in Ras Al-Khair and its plans to launch new facilities specializing in mining and manufacturing. He noted that these initiatives will significantly enhance local industries.

He also mentioned that IKTVA operates 16 training centers, having trained over 2,500 individuals in specialized programs and equipped 7,000 citizens with the skills required for the labor market.

Aramco signed 145 agreements and memorandums of understanding valued at SAR 33.75 billion ($9 billion) during the forum. These agreements aim to localize goods and services and strengthen local content in the supply chain.

Since the launch of IKTVA in 2015, localization rates have risen from 35% to 67% by 2024. Wael Al-Jaafari, Aramco’s Executive Vice President for Technical Services, emphasized that IKTVA has created cutting-edge business systems, unlocked new opportunities, and generated jobs for Saudi citizens while building a world-class supply chain.

He added that the program aims to achieve a localization rate of 70%, increase exports of locally manufactured goods and services, and create direct and indirect jobs for Saudi youth. As part of this initiative, 210 localization opportunities across 12 sectors—valued at SAR 105 billion ($28 billion) annually—have been identified.

Since its inception, IKTVA has facilitated the establishment of 350 manufacturing facilities with capital expenditures exceeding SAR 33.75 billion ($9 billion), Al-Jaafari remarked. These facilities cover various sectors, including chemicals, non-metallic materials, IT, electrical equipment, drilling systems, and more. The program has enabled the production of 47 products for the first time in Saudi Arabia.

On the opening day of IKTVA 2025, several key projects were announced, including the launch of Asmo—a joint venture between Aramco Development and DHL in Riyadh aimed at revolutionizing procurement and supply chains in the Middle East and North Africa.

Additionally, Navel Non-Metallic Solutions inaugurated its facility in King Salman Energy City, while the marine manufacturing facility by NMDC began operations in Ras Al-Khair.

China's economic growth is likely to slow to 4.5% in 2025 and cool further to 4.2% in 2026, a Reuters poll showed, with policymakers poised to roll out fresh stimulus measures to soften the blow from impending US tariff hikes.

Gross domestic product (GDP) likely grew 4.9% in 2024 - largely meeting the government's annual growth target of around 5%, helped by stimulus measures and strong exports, according to the median forecasts of 64 economists polled by Reuters.

But the world's second-largest economy faces heightened trade tensions with the United States as President-elect Donald Trump, who has proposed hefty tariffs on Chinese goods, is set to return to the White House next week.

“Potential US tariff hikes are the biggest headwind for China's growth this year, and could affect exports, corporate capex and household consumption,” analysts at UBS said in a note.

“We (also) foresee property activity continuing to fall in 2025, though with a smaller drag on growth.”

Growth likely improved to 5.0% in the fourth quarter from a year earlier, quickening from the third-quarter's 4.6% pace as a flurry of support measures began to kick in, the poll showed.

On a quarterly basis, the economy is forecast to grow 1.6% in the fourth quarter, compared with 0.9% in July-September, the poll showed.

The government is due to release fourth-quarter and full-year GDP data, along with December activity data, on Friday.

China's economy has struggled for traction since a post-pandemic rebound quickly fizzled out, with a protracted property crisis, weak demand and high local government debt levels weighing heavily on activity, souring both business and consumer confidence.

Policymakers have unveiled a blitz of stimulus measures since September, including cuts in interest rates and banks' reserve requirements ratios (RRR) and a 10 trillion yuan ($1.36 trillion) municipal debt package.

They have also expanded a trade-in scheme for consumer goods such as appliances and autos, helping to revive retail sales.

Analysts expect more stimulus to be rolled out this year, but say the scope and size of China's moves may depend on how quickly and aggressively Trump implements tariffs or other punitive measures.

More stimulus on the cards

At an agenda-setting meeting in December, Chinese leaders pledged to increase the budget deficit, issue more debt and loosen monetary policy to support economic growth in 2025.

Leaders have agreed to maintain an annual growth target of around 5% for this year, backed by a record high budget deficit ratio of 4% and 3 trillion yuan in special treasury bonds, Reuters has reported, citing sources.

The government is expected to unveil growth targets and stimulus plans during the annual parliament meeting in March.

Faced with mounting economic risks and deflationary pressures, top leaders in December ditched their 14-year-old “prudent” monetary policy stance for a “moderately loose” posture.

China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to revive the economy, but in doing so it risks quickly exhausting its firepower. It has already had to repeatedly shore up its defense of the yuan currency as downward pressure pushes it to 16-month lows.

Analysts polled by Reuters expected the central bank to cut the seven-day reverse repo rate, its key policy rate, by 10 basis points in the first quarter, leading to a same cut in the one-year loan prime rate (LPR) - the benchmark lending rate.

The PBOC may also cut the weighted average reserve requirement ratio (RRR) for banks by at least 25 basis points in the first quarter, the poll showed, after two cuts in 2024.

Consumer inflation will likely pick up to 0.8% in 2025 from 0.2% in 2024, and rise further to 1.4% in 2026, the poll showed.

Abdulaziz bin Salman: Saudi Arabia Plans to Enrich, Sell Uranium