Saudi Arabia's petrochemical sector has been significantly enhanced by the Ministry of Industry and Mineral Resources' new digital platform, which has successfully delivered over 100,000 tonnes of raw materials to local factories. The platform, named “Availability and Competitiveness of Petrochemical Raw Materials,” was launched in mid-2023 to address issues related to the surplus of locally available raw materials and competitiveness challenges arising from price discrepancies.
In its inaugural year, the platform processed over 60 requests from local factories, facilitating crucial coordination between basic and conversion companies as well as government agencies. This initiative is part of the ministry’s broader strategy to improve the integration and efficiency of local petrochemical supply chains.
Jarrah bin Muhammad Al-Jarrah, the ministry’s official spokesman, credited the platform's success to its effective coordination among stakeholders. He highlighted the system's role in mitigating challenges related to the competitiveness of petrochemical raw materials, which had previously been affected by local price variations.
The platform has established official channels for over 2,500 factories across more than 40 industrial zones, leading to significant improvements in supply chain and operational efficiency. By streamlining the supply of petrochemical raw materials, the platform has enhanced factory efficiency and industrial output, positively impacting local content and boosting exports.
This initiative supports Saudi Arabia’s Vision 2030 economic goals, aiming to strengthen the industrial sector. As of April 2024, the National Industrial and Mining Information Center estimated the country’s mineral wealth at SR9.4 trillion ($2.5 trillion), reflecting the Kingdom's ambition to make mining a key component of its industrial strategy.
Operated under the Petrochemical Supply Chain Integration Committee, the program aims to align the availability of petrochemical raw materials with the needs of transformation and specialized chemical industries. The achievements of its first year are expected to drive ongoing growth in factory efficiency, local content, and exports.
As Saudi Arabia continues to develop its industrial capabilities, this digital tool represents a crucial advancement toward greater sector integration and efficiency.
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