RIYADH: Many of the chief executives of the world’s biggest oil companies see peak in demand for oil looming. This peak may happen, arguably, in only 20 years. However, for Saudi Arabia, the picture is rosier than this.
Last week, the Saudi Crown Prince Mohammed bin Salman said during a panel at the Future Investment Initiative forum in Riyadh that he sees demand growing in the years 2030 to 2040.
There will be new areas for oil demand in the future from compound industries and new forms of petrochemical industries that will use oil differently from the conventional way.
Oil demand is more resilient than most people think and it will be tough for the world to cut the annual demand growth to 1 million barrels per day (bpd) from 1.5 million bpd currently, Saudi Arabia’s Minister of Energy and Industry Khalid Al-Falih said in Riyadh on Oct. 24, on a later panel.
Al-Falih said that demand for fuel from heavy transport, aviation and shipping sectors will keep oil demand rising. Energy demand will grow by 45 percent by 2050 and hydrocarbons will still make up 70 percent of the energy mix then, he added.
The International Energy Agency is giving conservative oil demand projections, Al-Falih said, adding that demand is growing in many areas in the world by healthy rates. He gave the example of India, where oil demand will be outpacing the country’s existing refining capacity.
The minister also said that electric cars, which will be a factor in the fall in demand for motor fuel, will provide opportunities for the Kingdom’s chemical and aluminum industries. This will keep demand for energy high.
The Kingdom is already embarking on this new wave for petrochemicals. State-run oil giant Saudi Aramco expects to finalize by the end of 2017 plans for a joint oil-to-chemicals project with Saudi Basic Industries Corp. (Sabic), Aramco’s chief executive Amin Nasser was quoted as saying by Reuters on Oct. 24 during his attendance of the forum in Riyadh.
The project, known as COTC, is one of the pioneers in the industry where oil will be used directly to make chemicals without the need to refine it to other feedstock.
The chemicals complex that will process around 400,000 bpd of crude oil may cost $20 billion or more, and it will be the first major scheme involving the two state giants.
Will oil demand peak soon? Here is the view from Saudi Arabia
Will oil demand peak soon? Here is the view from Saudi Arabia
Makkah sees rising economic activity ahead of Ramadan
MAKKAH: Islam’s holiest city, Makkah, is experiencing heightened economic activity ahead of this year’s Ramadan, as markets, shopping centers, and hotels see a surge in visitors, reflecting the city’s dual religious and economic significance during the season.
A field survey by the Saudi Press Agency showed a marked uptick in retail and food sectors, with rising demand for staple goods, dates, Ramadan beverages, and hospitality and decorative items.
Traditional markets and modern shopping complexes have seen brisk activity from residents, expatriates, and visitors, supported by promotional offers launched by numerous businesses to attract consumers.
In the hospitality sector, early bookings for hotels and serviced apartments, particularly in the central area around the Grand Mosque, have increased, with occupancy expected to rise further in the first days of the holy month.
This surge is driven by the arrival of pilgrims and visitors from inside and outside the Kingdom to perform Umrah and prayers at the Grand Mosque.
Transport and logistics services have also been active, alongside intensified preparations by relevant authorities to ensure smooth traffic flow and easy access for worshippers.
Health and regulatory measures have also been strengthened to ensure food safety and service quality.
Ramadan remains one of the most important annual sales seasons, providing a wide range of options for various consumer segments. At this time each year, Makkah experiences a full seasonal economic cycle that supports small and medium-sized enterprises and boosts commercial activity.
The Makkah Municipality has confirmed that it stepped up inspections of markets and retail outlets across the holy city, as part of its field plan to ensure compliance with health and municipal regulations, product safety, and service quality.
Inspection teams, the municipality said, have conducted intensive rounds covering public markets, shopping centers, food outlets, industrial kitchens, and restaurants to verify food quality, storage methods, and hygiene standards, while ensuring establishments adhere to approved rules and regulations.
It added that that these monitoring campaigns continue around the clock, particularly during periods of heightened commercial activity.
The municipal authority also stressed the importance of citizens and residents reporting any concerns through official channels, strengthening community oversight and ensuring the highest public health and safety standards in line with Makkah’s status as a destination for millions of worshippers from within the Kingdom and beyond.
This growing economic activity highlights the vitality of Makkah’s market and its ability to respond to major religious seasons, reinforcing the city’s role as a spiritually and economically vibrant center and a global destination for Muslims during Ramadan.
