Gulf Countries Look to Form an Integrated Industrial System

Bahrain’s Minister of Industry, Commerce and Tourism Zayed Al-Zayani (Asharq Al-Awsat)
Bahrain’s Minister of Industry, Commerce and Tourism Zayed Al-Zayani (Asharq Al-Awsat)
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Gulf Countries Look to Form an Integrated Industrial System

Bahrain’s Minister of Industry, Commerce and Tourism Zayed Al-Zayani (Asharq Al-Awsat)
Bahrain’s Minister of Industry, Commerce and Tourism Zayed Al-Zayani (Asharq Al-Awsat)

Bahrain’s Minister of Industry, Commerce, and Tourism Zayed Al-Zayani revealed that Gulf countries were heading towards establishing an integrated industry system by creating a Gulf strategy for the industry.

Al-Zayani said that Gulf countries are working to depend on each other in industries instead of importing raw materials or semi-manufactured materials from abroad.

He noted that this trend will have great positives, in terms of creating jobs, diversifying the base of the economy, and expanding the export value of countries.

“We in the Gulf are heading for a customs and economic union by 2025. The presence of an integrated system for the industry and a unified strategy helps us to talk with global blocs as a bloc,” Al-Zayani told Asharq Al-Awsat.

The minister pointed out that Gulf countries are collectively the 12th economy among the countries of the world.

“This enables us to grow our economy, and to be in the top ten, which sheds more light on the region,” said Al-Zayani.

Speaking about the Gulf trade sector, Al- Zayani said: “We believe that we can enhance and strengthen it by standardizing specifications as much as possible, so that factories produce one product, and they can sell it in all Gulf countries.”

“The flow of goods between Gulf Cooperation Council (GCC) states will be facilitated by 2025, with the activation of the customs union,” revealed Al-Zayani.

“From time to time, we see some obstacles to the flow of materials and goods between borders, and we aspire to find solutions for that,” he added.

“GCC countries are looking to increase free trade agreements.”

“Recently we worked with the United Kingdom, which is an old strategic partner, and we have a large trade volume with them in goods, amounting to about 30 billion pounds ($40.4 billion), and 19 billion pounds in services ($25.6 billion),” noted Al-Zayani.

Stressing that Gulf countries are a major trading partner for the UK, Al-Zayani said that there is hope to establish trade agreements on the collective level, which is the GCC, and not with each member state on its own.

The Bahraini minister talked about how the tourism sector, which aimed to account for 7% of GDP at the GCC between 2015 and 2019, now is aiming at 11.4%.

“The features of the strategy include several factors, but in the end it is aimed at one goal, which is the focus on the contribution of the tourism sector to the domestic product,” said Al-Zayani.



Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)
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Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)

Saudi Arabia has long followed a clear and transparent approach to preserving stability in global energy markets. Historically, it has consistently adhered to all decisions issued by the OPEC+ alliance and played a leading role alongside other producers to ensure compliance and promote the collective good.

Recently, the Kingdom briefly increased production volumes. However, the additional output was neither marketed domestically nor exported abroad. Instead, it was directed as a precautionary measure to strengthen strategic reserves, improve supply flows between the country’s eastern and western regions, and rebalance stocks held in overseas storage facilities.

Asharq Al-Awsat reached out to energy specialists to understand the significance of this move for energy security. Experts explained that building strategic reserves allows Saudi Arabia to respond swiftly to customer needs in the event of political crises, regional wars, adverse weather, or other unforeseen disruptions.

Fouad Al-Zayer, former head of data services at OPEC and an energy expert, said the Kingdom maintains millions of barrels in storage both inside and outside its borders. These reserves serve as a buffer during emergencies, enabling the country to compensate for supply shortfalls within a short timeframe. He emphasized that this stored crude is strategically critical in the face of geopolitical tensions and conflicts.

According to Al-Zayer, Saudi Arabia relies on an extraordinary reserve capacity unmatched by any other producer. The country currently produces more than 9 million barrels per day, with the capability to pump even higher volumes if needed. He noted that Saudi reserves alone account for 3 million barrels per day out of roughly 5 million barrels in global spare capacity, underscoring Riyadh’s central role in stabilizing markets and upholding its commitments under OPEC+ agreements.

He added that Saudi Arabia also hosts the International Energy Forum, which works to improve data quality and transparency in the sector. In June, the Kingdom’s output reached about 9 million barrels per day, with the modest increase attributed to logistical considerations. Al-Zayer stressed that it is common for producers to temporarily boost production to support maintenance operations or replenish storage, without impacting the broader market, since these barrels are not immediately traded.

He reiterated that Saudi Arabia has always honored OPEC+ production targets and has played a pivotal role in encouraging other members to meet their quotas.

Meanwhile, Dr. Mohammed Al-Sabban, former senior adviser to the Saudi Minister of Petroleum, explained that the Kingdom has consistently proven itself a reliable and secure supplier to global energy markets. He noted that Saudi Arabia’s recent statement clarified the reasons behind the June production uptick, emphasizing that the additional oil was neither destined for local consumption nor for export but was solely intended to refill domestic and foreign storage. He said such measures do not represent any breach of commitments, unlike the practices of some other countries.

Al-Sabban pointed out that Saudi Arabia has often gone beyond required cuts to help stabilize markets. Even the recent production increases, he said, fall within the scope of voluntary adjustments agreed upon by OPEC+ members. He noted that in July, Saudi Arabia raised production in line with credible studies indicating the market could absorb these volumes without disruption.