Saudi Aramco, Baker Hughes JV to Develop Non-Metallic Products

From left to right: Lorenzo Simonelli, CEO Baker Hughes, SVP Technical Services, Ahmad Sa’adi, Wael Tashkandi, CEO Novel. (Aramco)
From left to right: Lorenzo Simonelli, CEO Baker Hughes, SVP Technical Services, Ahmad Sa’adi, Wael Tashkandi, CEO Novel. (Aramco)
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Saudi Aramco, Baker Hughes JV to Develop Non-Metallic Products

From left to right: Lorenzo Simonelli, CEO Baker Hughes, SVP Technical Services, Ahmad Sa’adi, Wael Tashkandi, CEO Novel. (Aramco)
From left to right: Lorenzo Simonelli, CEO Baker Hughes, SVP Technical Services, Ahmad Sa’adi, Wael Tashkandi, CEO Novel. (Aramco)

Aramco and Baker Hughes announced the formation of Novel, a 50/50 Joint Venture (JV) to develop and commercialize a broad range of non-metallic products for multiple applications in the energy sector.

A ceremony was held Tuesday at the project site to commence construction. It was attended by Aramco’s Senior Vice President for Technical Services Ahmad Al Sa’adi and Baker Hughes Chairman and CEO Lorenzo Simonelli, read a statement released by the Saudi oil giant.

The ceremony comes after both companies signed a memorandum of understanding (MoU) to create a non-metallics JV in July 2019. Novel’s new facility is being developed at King Salman Energy Park (SPARK), in Saudi Arabia’s Eastern Province. SPARK is a 50-square-kilometer energy city megaproject which will position Saudi Arabia as a global energy, industrial and technology hub. Initially, the facility will produce onshore non-metallic pipelines – including reinforced thermoplastic pipes (RTP) – from composite materials.

The JV is based on a shareholders agreement signed in February this year during Aramco’s 5th In-Kingdom Total Value Add (IKTVA) Forum & Exhibition. The JV aligns with Aramco’s strategy to seek new opportunities in oil-based products, which not only offer performance benefits but also aims to reduce carbon emissions. It also supports Saudi Arabia’s efforts to expand its commercial ecosystem and promote domestic investment. The new facility will not only create jobs, it will also help foster growth of an emerging and innovative sector in alignment with Saudi Arabia’s Vision 2030, said the statement.

Al Sa’adi said: “Non-metallic products are reshaping the industries and products we all depend on because they are more reliable, cost effective and offer sustainability benefits.”

“The partnership with Baker Hughes reinforces our commitment to expanding the use of innovative non-metallic materials in our operations to drive efficiency and reduce maintenance and replacement costs, while also positively impacting the Kingdom’s economic development through job creation and local expertise.”

Neil Saunders, Executive Vice President, Oilfield Equipment, Baker Hughes, said: “As an energy technology company, we are investing for growth in strategic areas like non-metallics, and our deep background in non-metallic product development will benefit a wide range of industries.”

“Aramco’s vision to expand its product development in the region aligns with our vision to support innovation and manufacturing in Saudi Arabia.”

Non-metallic products are being deployed in a variety of industries, from the oil and gas sector to automotive, building and construction, packaging and renewables. In addition to being more sustainable, these advanced materials make them lighter than their conventional counterparts and resistant to corrosion.



Foreign Tourist Spending in Saudi Arabia Tops $13 Bln in Q1

Foreign tourists visit AlUla, one of Saudi Arabia’s top heritage sites (Asharq Al-Awsat)
Foreign tourists visit AlUla, one of Saudi Arabia’s top heritage sites (Asharq Al-Awsat)
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Foreign Tourist Spending in Saudi Arabia Tops $13 Bln in Q1

Foreign tourists visit AlUla, one of Saudi Arabia’s top heritage sites (Asharq Al-Awsat)
Foreign tourists visit AlUla, one of Saudi Arabia’s top heritage sites (Asharq Al-Awsat)

Saudi Arabia recorded a sharp rise in inbound visitor spending in the first quarter of 2025, with international tourists spending 49.4 billion riyals ($13.2 billion), up 9.7% from the same period last year, according to the Ministry of Tourism.

 

The kingdom also posted a surplus of 26.8 billion riyals ($7.14 billion) in its travel account balance, marking an 11.7% year-on-year increase, driven by a surge in tourism activity and government-led initiatives to diversify the economy beyond oil.

 

The data, published in the central bank’s balance of payments for May, reflects the success of Saudi Arabia’s broader tourism strategy under Vision 2030, which aims to position the kingdom as a global travel destination.

 

Tourism reforms yield results

 

The Ministry of Tourism said the strong surplus was the result of continued national efforts to boost tourism’s contribution to economic growth. It added that the figures reflect “clear progress” in the sector’s development.

 

The rapid growth highlights the effectiveness of reforms across the tourism ecosystem, including improved services, upgraded infrastructure, and enhanced collaboration between public and private stakeholders to meet Vision 2030 targets.

 

Industry experts say government initiatives launched in recent years are starting to bear fruit, as evidenced by rising international arrivals and spending.

 

E-visas widen access

 

Speaking to Asharq Al-Awsat, tourism investor and businessman Majed Al-Hokair said Saudi Arabia’s recent achievements underscore its growing appeal to international visitors.

 

He credited the introduction of electronic tourist visas for travelers from across the globe with significantly boosting arrivals, allowing visitors to explore the country’s diverse offerings — from historical and cultural sites to leisure and beach destinations.

 

Al-Hokair added that Saudi Arabia’s tourism appeal spans all seasons, drawing visitors for entertainment, heritage, business travel, and conferences, all of which have generated new job opportunities for Saudis in the sector.

 

Legal reforms fuel tourism boom

 

Nasser Al-Ghilan, founder and CEO of Amla Tourism Investment, told Asharq Al-Awsat that regulatory changes have also played a key role in attracting foreign tourists and driving up domestic tourism spending.

 

He said several new tourism and entertainment projects launched under Vision 2030 helped the kingdom surpass its goal of 100 million visitors in 2023, with new targets now set at 150 million annual visitors by the end of the decade.

 

Record tourism surplus in 2024

 

In 2024, Saudi Arabia posted a record 50 billion riyals ($13.3 billion) surplus in its travel account - a 7.8% increase over 2023 - driven by a 13.8% jump in international visitor spending.

 

Inbound tourism spending rose to 153.6 billion riyals ($40.9 billion) in 2024, compared to 135 billion riyals ($36 billion) the previous year, reflecting the kingdom’s growing status as a global travel hub.