Zawya reported that Kingdom of Saudi Arabia is forecast to invest around USD 318 billion in energy over the next few years as massive infrastructural developments are in full swing brought about by economic reforms and huge oil revenues amid high crude prices in the global markets.
A recent study by Kuwait Financial Centre forwarded to the Saudi Gazette said that a breakdown of the figure shows that allocation to petrochemical projects totals USD 90 billion, the same amount is assigned to power generation, USD 88 billion is earmarked for water desalination plant projects and USD 50 billion is appropriated for natural gas related projects. Markaz said that to achieve this target, the authorities would have to present several joint projects to the private sector, local and foreign in order to increase power generation capacity. The study said that the petrochemicals sector is driven by either proximity to market or large scale projects which take advantage of low cost, secure oil and gas supplies. These factors in turn have made the Kingdom one of the world's strategic hubs for petrochemicals. These competitive advantages are now likely to be joined by a number of highly integrated refining and petrochemical investments which will develop and strengthen the industry. It added that "capacities after 2008 based on current planned projects may not be met due to the restriction on inputs supply unless the gas production capacity is substantially increased."
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