Saudi Oil Minister Ali Al Nauimi took a break from the volatile crude market yesterday to pitch a petrochemical industry programme to make the kingdom the world's number three in the sector by 2015 and boost youth employment.
Al Nuaimi said the government has started a $70 billion investment programme to take Saudi Arabia from its current ranking as the world's 10th largest petrochemical producer.
"The petrochemicals industry gives us value added and employment for a large number of the young," Al Nuaimi said.
Several regional bankers have questioned whether the petrochemical investment would make a profit, saying the money could constitute a huge subsidy, but Al Nuaimi said it will be profitable in the long term.
The minister expected petrochemical output to rise from 60 million tonnes to 100m by 2015 and the kinds of petrochemicals produced to double.
"The products we're manufacturing using petrochemical components are highly competitive with anything in the world," said Al Nuaimi, who delivered the keynote speech at the Arab Economic Forum, a gathering organised by the Al-Iktissad Wal-Aamal magazine.
Al Nuaimi said returns from the oil boom were being used to expand Saudi industry and raise the number of Saudis among the workforce, a process known as Saudisation.
Al Nuaimi said the diversification strategy includes a $13bn investment in a phosphate and fertiliser complex in Ras Al Zor on the Gulf, which is expected to start production by 2010.
A 1,400km railway network will be built to supply raw materials from Saudi Arabia's north and central regions to the complex.
Al Nuaimi restricted his comments on the oil market to Saudi's reserves.
"Indications suggest that we could raise this by another 200bn."
"The kingdom will continue as the biggest and most important oil producer in the 21st century as it was during the past 50 years."
Al Nuaimi said the new investments will help Saudi Arabia weather any political storm.
"Progress in the economy, research, science and society will help remove dangers surrounding us," said Al Nuaimi, who attended the American University of Beirut decades ago, when it was a bastion of liberal thinking.
"A strong economy will help stabilise the state," he said.
Al Nuaimi said the government has started a $70 billion investment programme to take Saudi Arabia from its current ranking as the world's 10th largest petrochemical producer.
"What we have achieved so far has been a dream.
"The petrochemicals industry gives us value added and employment for a large number of the young," Al Nuaimi said.
Several regional bankers have questioned whether the petrochemical investment would make a profit, saying the money could constitute a huge subsidy, but Al Nuaimi said it will be profitable in the long term.
The minister expected petrochemical output to rise from 60 million tonnes to 100m by 2015 and the kinds of petrochemicals produced to double.
"The products we're manufacturing using petrochemical components are highly competitive with anything in the world," said Al Nuaimi, who delivered the keynote speech at the Arab Economic Forum, a gathering organised by the Al-Iktissad Wal-Aamal magazine.
Al Nuaimi said returns from the oil boom were being used to expand Saudi industry and raise the number of Saudis among the workforce, a process known as Saudisation.
Al Nuaimi said the diversification strategy includes a $13bn investment in a phosphate and fertiliser complex in Ras Al Zor on the Gulf, which is expected to start production by 2010.
A 1,400km railway network will be built to supply raw materials from Saudi Arabia's north and central regions to the complex.
Al Nuaimi restricted his comments on the oil market to Saudi's reserves.
"Our reserves stand at around 264bn barrels which is a quarter of proven international reserves," he said.
"Indications suggest that we could raise this by another 200bn."
"The kingdom will continue as the biggest and most important oil producer in the 21st century as it was during the past 50 years."
Al Nuaimi said the new investments will help Saudi Arabia weather any political storm.
"Progress in the economy, research, science and society will help remove dangers surrounding us," said Al Nuaimi, who attended the American University of Beirut decades ago, when it was a bastion of liberal thinking.
"A strong economy will help stabilise the state," he said.
"Underdevelopment only leads to desperation."
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