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Saudi Arabia Secures Half of the Gulf’s Energy Spare Parts Market

Inside the factories of Immensa in Dammam (Asharq Al-Awsat)
Inside the factories of Immensa in Dammam (Asharq Al-Awsat)
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Saudi Arabia Secures Half of the Gulf’s Energy Spare Parts Market

Inside the factories of Immensa in Dammam (Asharq Al-Awsat)
Inside the factories of Immensa in Dammam (Asharq Al-Awsat)

Saudi Arabia’s energy spare parts industry is experiencing unprecedented growth, driven by the adoption of digital manufacturing technologies. The Kingdom now commands more than half of this market in the Gulf region, with an estimated annual value of $10 to $15 billion, while the global market stands at approximately $90 billion per year. This underscores the importance of localization, especially with the increasing adoption of 3D printing.

During an interview with Asharq Al-Awsat, Fahmi Al-Shawwa, founder and CEO of Immensa, said he expects the local sector to witness significant growth in the coming years, as expansion opportunities in the Saudi market present promising prospects.

Immensa, a Saudi company, is the largest digital manufacturer in the Middle East and North Africa. The company has digitized over 15,000 spare parts, evaluated more than 2.1 million parts using artificial intelligence, and produced over 200 components using additive manufacturing—an advanced technique that builds parts layer by layer from a 3D digital model.

According to Al-Shawwa, the value of locally manufactured energy sector components in Saudi Arabia using 3D printing ranges between $1 billion and $4 billion, creating significant opportunities for local companies to expand their operations.

He also revealed that Immensa aims to double its growth by 2025 as 3D printing technologies continue to advance. In 2024, the company achieved a 300% increase in production capacity, reflecting substantial improvements in manufacturing processes.

Al-Shawwa emphasized that Immensa is expanding its production capabilities and offering innovative solutions to enhance efficiency. The adoption of 3D printing allows Saudi Arabia to produce high-value components domestically, strengthening the industrial sector, which contributes 12% to 15% of the country’s GDP.

The biggest challenge facing the industry is raising awareness about the potential of advanced manufacturing technologies, according to Al-Shawwa. He stressed that 3D printing is not just an emerging industry but a revolutionary manufacturing method capable of transforming various sectors.

“Both the private and public sectors face challenges in embracing the risks associated with adopting new technologies. This calls for greater awareness and education on the true benefits of these innovations,” he stated.

Regarding local talent development, Al-Shawwa confirmed that Immensa is investing in specialized consulting services, training programs, and new manufacturing facilities to support national innovation. The company is also strengthening cybersecurity and infrastructure to create a secure and sustainable environment for protecting local digital inventories.

He noted that Saudi Arabia is strongly committed to adopting the Fourth Industrial Revolution, which has become a strategic necessity rather than a luxury.

Al-Shawwa concluded by saying that Immensa’s greatest value lies in its ability to create a local digital inventory, which could reduce reliance on global markets and unlock new opportunities for innovation in the energy spare parts industry.

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Business

US Allows Oil Majors to Resume Venezuela Operations, Broadly Okays New Energy Investments

A flame burning natural gas is seen at an heavy-crude treatment plant operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Cabrutica at the state of Anzoategui April 16, 2015. (Reuters)
A flame burning natural gas is seen at an heavy-crude treatment plant operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Cabrutica at the state of Anzoategui April 16, 2015. (Reuters)
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US Allows Oil Majors to Resume Venezuela Operations, Broadly Okays New Energy Investments

A flame burning natural gas is seen at an heavy-crude treatment plant operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Cabrutica at the state of Anzoategui April 16, 2015. (Reuters)
A flame burning natural gas is seen at an heavy-crude treatment plant operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Cabrutica at the state of Anzoategui April 16, 2015. (Reuters)

The US eased sanctions on Venezuela's energy sector on Friday, issuing two general licenses that allow global energy companies to resume oil and gas operations in the OPEC member and for other companies to negotiate contracts on investments in new energy operations.

The Treasury Department's Office of Foreign Assets Control issued a general license allowing Chevron, BP, Eni, Shell and Repsol to resume ‌oil and gas ‌operations in Venezuela. Those companies still have offices in the ‌country.

The ⁠authorization for the ⁠oil majors' resumption of operations requires payments for royalties and Venezuelan taxes to go through the US-controlled Foreign Government Deposit Fund.

The other license allows companies around the world to enter contracts with state oil company PDVSA for new investments in Venezuelan oil and gas. The contracts are contingent on separate permits from OFAC.

The authorization does not allow transactions with companies in Russia, Iran, or China or entities owned or controlled ⁠by joint ventures with people in those countries.

The move ‌was the biggest relaxation of sanctions on Venezuela ‌since US forces captured and removed President Nicolas Maduro last month.

The US has had ‌sanctions on Venezuela since 2019 when President Donald Trump imposed them during his ‌first administration.

Trump is now seeking $100 billion in investments by energy companies in Venezuela's oil and gas sector. US Energy Secretary Chris Wright said on Thursday, during his second day of a trip to Venezuela, that oil sales from the country since Maduro's capture have hit $1 ‌billion and would hit another $5 billion in months.

Wright said the US will control the proceeds from the sales until Venezuela ⁠stands up ⁠a "representative government."

Since last month, the Treasury issued several other general licenses to facilitate oil exports, storage, imports and sales from Venezuela. It also authorized the provision of US goods, technology, software or services for the exploration, development or production of oil and gas in Venezuela.

The Venezuelan government seized assets of Exxon Mobil and ConocoPhillips in 2007 under then-President Hugo Chavez. The Trump administration is trying to get those companies to invest in Venezuela as well. At a meeting at the White House with Trump last month, Exxon Mobil CEO Darren Woods said Venezuela was "uninvestable" at the moment.

Wright said on Thursday that Exxon, which no longer has an office in Venezuela, is in talks with the government there and gathering data about the oil sector. Exxon did not immediately comment.

Business

Saudi Energy Minister, China’s NDRC Chairman Co-chair Fifth Belt and Road, Major Projects and Energy Subcommittee Meeting

Discussions covered cooperation across the energy, investment and industry - SPA
Discussions covered cooperation across the energy, investment and industry - SPA
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Saudi Energy Minister, China’s NDRC Chairman Co-chair Fifth Belt and Road, Major Projects and Energy Subcommittee Meeting

Discussions covered cooperation across the energy, investment and industry - SPA
Discussions covered cooperation across the energy, investment and industry - SPA

The fifth meeting of the Belt and Road, Major Projects and Energy Subcommittee of the Saudi–Chinese High-Level Joint Committee convened via videoconference under the co-chairmanship of Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz and Chairman of the National Development and Reform Commission (NDRC) of the People’s Republic of China Zheng Shanjie.

The meeting reaffirms both sides’ commitment to further advancing the strategic partnership between the two countries. The two sides reviewed progress in bilateral relations and discussed ways to strengthen cooperation in priority sectors, SPA reported.

They also highlighted opportunities under Saudi Vision 2030 and China’s Belt and Road Initiative to expand cooperation and achieve mutual benefits.

Discussions covered cooperation across the energy, investment, industry, minerals, space, water, transport, and major projects sectors.
The two sides agreed to continue coordination on topics of mutual interest, enhance alignment of development strategies and concrete cooperation, and identify priorities for future cooperation.

The subcommittee serves as a key bilateral mechanism for advancing cooperation between Saudi Arabia and China and supporting projects and initiatives of mutual interest aligned with Saudi Vision 2030 and China’s Belt and Road Initiative.

Business

Russian Central Bank Cuts Key Rate to 15.5%, Signals More Cuts to Come

People walk along the Zaryadye Floating Bridge on a cold winter day, with the Kremlin in the background, in Moscow, Russia February 5, 2026. REUTERS/Anastasia Barashkova
People walk along the Zaryadye Floating Bridge on a cold winter day, with the Kremlin in the background, in Moscow, Russia February 5, 2026. REUTERS/Anastasia Barashkova
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Russian Central Bank Cuts Key Rate to 15.5%, Signals More Cuts to Come

People walk along the Zaryadye Floating Bridge on a cold winter day, with the Kremlin in the background, in Moscow, Russia February 5, 2026. REUTERS/Anastasia Barashkova
People walk along the Zaryadye Floating Bridge on a cold winter day, with the Kremlin in the background, in Moscow, Russia February 5, 2026. REUTERS/Anastasia Barashkova

Russia's central bank cut its key interest rate by 50 basis points to 15.5% on Friday and signaled that rates could fall further in a bid to shore up the slowing wartime economy, which is struggling with high borrowing costs.

Of ‌the 24 ‌analysts surveyed by Reuters ahead of ‌the decision, ⁠just eight out ⁠of 24 had predicted a 50-basis-point cut.

"The Bank of Russia will assess the need for a further key rate cut at its upcoming meetings depending on the sustainability of the inflation slowdown and the dynamics of inflation expectations," the bank said.

"The baseline scenario assumes the average key ⁠rate to be in the range from ‌13.5% to 14.5% per annum ‌in 2026," it said.

Russia's economy, which showed significant resilience ‌to Western sanctions over the course of the first ‌three years of the conflict in Ukraine, slowed down sharply last year after the central bank hiked the key rate to fight inflation.

Russia's government forecasts growth of 1.3% this year, after 1.0% ‌in 2025. The central bank sees growth at 0.5-1.5% this year.

The central bank forecast ⁠annual inflation ⁠would decline to 4.5–5.5% in 2026, but cautioned about the rise in prices in January.

Prices have risen by 2.1% since the start of the year, reaching 6.5% on an annual basis, as a result of an increase in value-added tax (VAT), which the government introduced to ensure that the budget was balanced.

"Higher VAT and excise taxes, the indexation of administered prices and tariffs, and price adjustments for fruit and vegetables led to a temporary but considerable acceleration of the current price growth in January," the bank said.