Aramco Inaugurates First Saudi Fiberglass Facility

A Saudi Aramco logo is pictured at the oil facility in Khurais, Saudi Arabia. (Reuters)
A Saudi Aramco logo is pictured at the oil facility in Khurais, Saudi Arabia. (Reuters)
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Aramco Inaugurates First Saudi Fiberglass Facility

A Saudi Aramco logo is pictured at the oil facility in Khurais, Saudi Arabia. (Reuters)
A Saudi Aramco logo is pictured at the oil facility in Khurais, Saudi Arabia. (Reuters)

Saudi Aramco inaugurated the first fiberglass rebar plant in the Kingdom, which is expected to localize the industry and reduce steel rebar consumption, as a sustainable new corrosion-free material that could help achieve carbon neutrality targets.

Aramco’s senior vice president of technical services, Ahmad al-Saadi inaugurated the plant following a deal signed in 2019 by New Zealand’s Pultron Composites and its partner Isam Khairy Kabbani Group (IKK).

According to a statement, the facility’s launch is part of Saudi Arabia’s efforts to attract and localize the rebar industry. It is also in line with the efforts to achieve Vision 2030.

Saadi explained that Aramco has been developing and deploying non-metallic solutions within its operations for more than 20 years, noting that the use of non-metallic, advanced polymer materials has significant potential in multiple sectors.

“Moreover, technologies such as GFRP rebar, which mitigate corrosion and minimize life cycle cost, have potential to be the real game-changers for the building and construction sector in particular.”

IKK Group chairman Hassan al-Kabbani said: “We are introducing a revolutionary new technology that will start to replace the iconic construction material that has been around for over a century now.”

Meanwhile, the Saudi Basic Industries Corporation (SABIC) signed an agreement for rail container transportation services with Saudi Railways (SAR).

The agreement was signed in the presence of the Minister of Transport and Logistics Services, Saleh al-Jasser, SABIC Chairman Khalid al-Dabbagh, and SAR CEO Bashar al-Malik.

SABIC CEO Yousef al-Benyan confirmed that the project is part of the company’s contribution to achieving Vision 2030 by providing safe, reliable, fast, and environmentally compatible transportation solutions to serve local industries.

Under the agreement, SAR will transport SABIC’s polymer products by rail from the logistics facility in the port to the delivery point of the port of Dammam, and the point of delivery of empty containers to the logistics facility in the port.

SABIC’s global supply chain is cooperating with SAR to maximize the benefit of this agreement, including the increase in the internal rate of return, cost savings, enhanced operational added value, and meeting sustainability requirements, including fuel savings by 70 percent which will reduce carbon dioxide emissions.



Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.