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Energy Minister: Saudi Arabia will Dominate Hydrogen Market

Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz at the Davos session (Asharq Al-Awsat)
Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz at the Davos session (Asharq Al-Awsat)
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Energy Minister: Saudi Arabia will Dominate Hydrogen Market

Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz at the Davos session (Asharq Al-Awsat)
Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz at the Davos session (Asharq Al-Awsat)

Saudi Arabia will dominate the hydrogen market and has the potential to become the cheapest cost producer of gas, revealed Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz.

Speaking at a session of Davos Agenda entitled: "Navigating the Energy Transition," the Minister said the world has a generous amount of energy to exploit, whether from fossil fuels or renewable sources.

The Minister stressed the importance of ensuring that the global economy remains supplied with energy no matter what happens.

Saudi Arabia is cooperating with the world to move its markets to a larger international scale and find a market for green hydrogen and 'pink hydrogen,' which is produced using nuclear power, that may be made in the Kingdom, he added.

Prince Abdulaziz also noted that the Kingdom would have a "field day" with blue hydrogen because it has the potential to become "the cheapest cost producer of gas, we are making a huge investment on shale gas in Saudi Arabia," he explained.

During his participation in the Abu Dhabi Sustainability Week (ADSW), Prince Abdulaziz emphasized that each country should decide their own choices regarding resources of energy based on their national resources and abilities.

He reiterated the importance of the three pillars of energy security, economic growth, prosperity, and sustainability, and climate change.

The Minister noted that the Saudi Green Initiative and the Middle East Green Initiative aim to ensure that the entire region reaches its goals and reflects its commitment. The central pillar of the green initiative is the circular carbon economy.

Prince Abdulaziz said that the circular carbon economy is the central pillar of the Kingdom's green initiative, and ministers are trying to apply its 4 R's — reduce, reuse, recycle and rethink.

He also reported that SABIC and Aramco are working in the circular carbon economy to ensure that the carbon collected is put to good use.

Prince Abdulaziz also noted that carbon would be a material to be reused, not disposed of, reiterating the importance of recycling.

The Minister stated that the Kingdom's Nationally Determined Contribution announced as part of the Saudi Green initiative will reduce emissions by 278 million tons.

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Arab Automotive Sector Attracts $25 Billion in Foreign Investments Over 22 Years

 A parking lot in Saudi Arabia (Asharq Al-Awsat)
 A parking lot in Saudi Arabia (Asharq Al-Awsat)
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Arab Automotive Sector Attracts $25 Billion in Foreign Investments Over 22 Years

 A parking lot in Saudi Arabia (Asharq Al-Awsat)
 A parking lot in Saudi Arabia (Asharq Al-Awsat)

The Arab Investment and Export Credit Guarantee Corporation (Dhaman) announced that the automotive sector in Arab countries has attracted 184 foreign projects, with a cumulative investment exceeding $25 billion and creating over 102,000 jobs from 2003 to October 2024.
Kuwait-based Dhaman explained, in its fourth sector report for 2024 issued on Sunday, that five Arab countries; Saudi Arabia, Morocco, UAE, Algeria, and Egypt accounted for 79% of the total projects in the automotive sector.
These projects represent an investment cost of more than $22 billion, with a share of 89% of the total sectoral investment, and have created over 91,000 jobs, with a share of 89% of the total.
The report focuses on four key aspects; the development and future of vehicle sales until 2028, foreign trade in vehicles and their components for 2023, in addition to foreign projects in the automotive sector, and assessing investment and business risks related to car sales activity in 2024.
China topped the list of investors in the Arab region, implementing 27 projects between 2003 and 2024, with an investment cost of nearly $8 billion and creating about 20,000 new jobs.
The report highlighted that the top 10 companies in the sector accounted for 41% of the new projects, with a share of 67% of total capital investments, and 58% of the new jobs created.
Japan's Nissan topped the number of new projects reaching 18 projects, with a share of 10% of the total.
However, the Chinese company Human Horizon Group topped in investment value, contributing $5.6 billion with a share of 22% of the total.
Meanwhile, the French company Renault topped in job creation, generating approximately 15,000 positions, with a share of 15% of the total jobs created in the sector.
The report also ranked investment incentives and risks in 16 Arab countries based on Fitch ratings, with Gulf Cooperation Council (GCC) countries leading the list.
Vehicle sales in the Arab region (16 countries) are expected to grow by over 5%, exceeding 2.3 million units by the end of 2024, with a share of 2.4% of global vehicle sales. This figure is expected to reach 3 million units by 2028.
Saudi Arabia, the UAE, Algeria, Morocco, and Kuwait collectively account for approximately 75% of total regional sales.
Private Cars
Private car sales in 12 Arab countries are forecasted to exceed 1.8 million units by the end of 2024, marking a 4.5% rise compared to 2023. Saudi Arabia leads this category with a 45% share of the market. The region's sales are expected to surpass 2.2 million vehicles by 2028, according to Fitch ratings.
The report indicated an increase in the regional vehicle fleet index, reaching an average of 307 vehicles per 1,000 inhabitants by the end of 2024, up by nine points.
This figure is expected to further rise to 353 vehicles per 1,000 inhabitants by 2028, with Libya and many GCC countries exceeding the regional average.
Arab foreign trade in road vehicles and their components increased by 23% in 2023, reaching $126 billion.
This growth was driven by a 29% rise in exports, totaling $29 billion, (bolstered by vehicle re-export activities valued at $14 billion in the GCC separately).
Imports increased by 21%, reaching $97 billion, with 82% of the total trade concentrated in five countries: the UAE, Saudi Arabia, Morocco, Iraq, and Kuwait, collectively accounting for $103 billion.
Japan topped the largest exporter of vehicles and components to the Arab region, recording exports valued at $17 billion, representing 17% of the total. Iraq emerged as the largest importer from the region, accounting for $10 billion 34% of total imports.
Personnel transport vehicles topped Arab imports of vehicles and components in 2023, valued at $63 billion, exceeding 65% of total imports. Vehicle parts and accessories followed, valued at $14 billion, contributing 14% to total imports.