MANAMA – Despite all achievements made in the oil and gas sector in the Gulf, the sector remains one of the most promising that provides various investment opportunities, Abdullatif Al-Othman, Governor of the Saudi Arabian General Investment Authority (SAGIA) said in his speech at the Middle East Oil & Gas Show and Conference (MEOS 2013) here in Bahrain on Wednesday. He also stressed on the importance for the GCC to adopt policies that aim to raise the added value in this sector, and encourage the establishment of industries and support services in downstream conversion, manufacturing, engineering, and construction. In addition, there needs to be targeted national talent development plans as well as research and development to enable technology transfer. Commenting on the positive experience the GCC has witnessed in oil and gas as well as energy sectors and their impressive achievements, Al-Othman said “today our industry commands respect and source of admiration. These achievements afford us the opportunity to explore new horizons for investments in this vital sector." He also stressed the importance of investing in downstream conversions industries with crude oil accounting for 84 percent of total exports of all GCC countries and 90 percent of petrochemical exports comprising of raw products with low added value. He then offered some examples of potential enabling policies, such as sector specific national talent development programs; establishing sector specific local content targets in areas of engineering, material and equipment; allocation of percentage of projects to SMEs; and strategic alliances with global manufacturers to expand manufacturing and research and development capabilities locally. "This industry is a cornerstone for our economy and through such policies, we can help create truly integrated and developed sector that will not only increase our competitive advantage but also help set the foundation for a diversified economy," he pointed out. The GCC active projects in the energy sector in 2012 reached $600 billion, with a local content share of 20 percent. “Our successful experience in raising the percentage of local content (engineering, material manufacturing and services) was led by companies such as Saudi Aramco and SABIC and others in the region. This should contribute to our progress to move forward in the right direction and create policies that enable an increased localization of this particular industry," Al-Othman said. — SG
