Abdulaziz bin Salman: Energy Security Essential to Growth, Facing Climate Challenges

Saudi Energy Minister Prince Abdulaziz bin Salman during his participation on Wednesday in the LEAP Conference (Photo: Bashir Saleh)
Saudi Energy Minister Prince Abdulaziz bin Salman during his participation on Wednesday in the LEAP Conference (Photo: Bashir Saleh)
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Abdulaziz bin Salman: Energy Security Essential to Growth, Facing Climate Challenges

Saudi Energy Minister Prince Abdulaziz bin Salman during his participation on Wednesday in the LEAP Conference (Photo: Bashir Saleh)
Saudi Energy Minister Prince Abdulaziz bin Salman during his participation on Wednesday in the LEAP Conference (Photo: Bashir Saleh)

Saudi Energy Minister Prince Abdulaziz bin Salman said Wednesday that the Kingdom was committed to its pledges to reduce carbon emissions and address the climate crisis.

He emphasized that energy security constituted a necessary basis for the prosperity of the global economy, and for achieving a smooth transition to deal with climate challenges.

The Saudi minister’s remarks came during a panel discussion, held within the framework of the business sessions of the LEAP International Technology Conference in Riyadh. The discussion, entitled “Technology for the Energy Transition”, was moderated by Lord Stephen Carter, former British Minister for Communications and CEO of Informa PLC.

Prince Abdulaziz noted that energy sustainability and the use and development of adequate technologies would help the Kingdom reach zero-net emissions in 2060.

He pointed to the role of the Saudi youth in achieving climate goals, saying: “The real story of the Kingdom is the ambitious, determined, and hopeful young generation. Thanks to this generation, the word ‘impossible’ will never be in our dictionary.”

The Saudi Minister of Energy stressed the need to engage positively in the conservation and purification of energy, and to reduce emissions, noting that Crown Prince Mohammed bin Salman presented great initiatives, including the Saudi Green Initiative, which aims to achieve zero emissions in 2060.

“Within this commitment, we hosted this conference that brought together the world of technicians in Riyadh, and launched programs that work effectively to reduce emissions,” he stated.

“Thanks to our low-cost production, whether in oil, gas or renewable energy, we will certainly be the least expensive producers of hydrogen, and our perseverance saved us in the OPEC Plus agreement,” Prince Abdulaziz said, noting that his country’s interest in nuclear energy comes within the framework of providing energy services at a lower price to those living in remote areas of the Kingdom.



SABIC Expects Capital Expenditure of $4 Bn in 2025

One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
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SABIC Expects Capital Expenditure of $4 Bn in 2025

One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)

Saudi Basic Industries Corporation (SABIC), one of the world’s largest petrochemical companies, reported a net loss of 1.21 billion riyals ($322.6 million) for the first quarter of 2025, reflecting continued pressure on the global petrochemical sector.

Despite this, the company is maintaining disciplined capital investment management, with capital expenditure expected to range between $3.5 billion and $4 billion in 2025.

The loss was primarily attributed to a 1.05 billion riyal decline in gross profit, driven by rising feedstock prices, along with non-recurring costs of 1.07 billion riyals linked to a strategic restructuring initiative aimed at streamlining annual costs by approximately 345 million riyals and improving long-term operational efficiency.

SABIC CEO Abdulrahman Al-Fageeh, speaking at a press conference following the release of the company’s results, highlighted ongoing challenges in the global economy, including a slowdown in global GDP growth.

 

 

“The first quarter business environment was marked by uncertainty, with global economic growth at just 2.97%, along with a slowdown in the manufacturing PMI, which intensified challenges for the sector,” he said.

Despite the losses, Al-Fageeh noted SABIC's remarkable resilience, supported by what he described as “stable demand” for petrochemicals. He emphasized the company’s continued focus on operational excellence and its transformation efforts throughout the year.

SABIC projects its capital expenditure to range between $3.5 billion and $4 billion in 2025, reaffirming its commitment to creating long-term value through operational excellence, transformation, and systematic growth as part of its future vision.

Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, commented to Asharq Al-Awsat that initial forecasts from various research firms prior to the results announcement were mixed. While some expected a significant year-on-year drop in net profit, others predicted revenue growth.

“Looking at the reported results, we see that revenue aligned with expectations, indicating slight year-on-year growth, while the reported net loss was smaller than some estimates, which had anticipated larger losses,” Al-Farraj said.

“However, the results still fall short of profits from the same period last year. It is important to consider the impact of one-time restructuring costs when making comparisons,” he explained.