Saudi Arabias Petchem Sector Boosted By New Digital Platform

RIYADH: Saudi Arabia’s petrochemical sector has received a boost with the Ministry of Industry and Mineral Resources’ digital platform delivering over 100,000 tonnes of raw materials to local factories.

Launched in mid-2023, the platform, named “Availability and Competitiveness of Petrochemical Raw Materials,” is designed to tackle challenges related to the surplus of locally available raw materials and to address competitiveness issues stemming from price disparities.

In its first year, the initiative processed over 60 requests from local factories, facilitating crucial coordination between basic and conversion companies as well as government agencies. This effort is part of the ministry’s broader strategy to improve the integration and efficiency of local petrochemical supply chains.

According to Jarrah bin Mohammed Al-Jarrah, the spokesman for the ministry, the tool’s success is attributed to its effective coordination among various stakeholders.

He emphasized that the system has been instrumental in addressing challenges related to the competitiveness of petrochemical raw materials, which had previously been impacted by local price variations.

The platform has established official channels for over 2,500 factories across more than 40 industrial zones, significantly improving supply chain and operational efficiency. By streamlining the supply of petrochemical raw materials, it has enhanced factory efficiency and industrial sector output, contributing positively to local content and boosting exports.

The initiative aligns with Saudi Arabia’s broader economic goals, particularly those outlined in Vision 2030. According to the National Industrial and Mining Information Center, the country’s mineral wealth was estimated at SR9.4 trillion ($2.5 trillion) as of April 2024. This valuation highlights the Kingdom’s ambition to establish mining as a cornerstone of its industrial strategy and supports the ministry’s goal to further strengthen the sector.

Operating under the Petrochemical Supply Chain Integration Committee, the program aims to synchronize the availability of petrochemical raw materials with the needs of the transformation and specialized chemical industries. The improvements achieved in its first year are anticipated to drive continued growth in factory efficiency, local content, and exports.

As Saudi Arabia advances its industrial capabilities, the digital tool for petrochemical raw materials represents a crucial step toward achieving greater integration and efficiency within the sector.