During the last decades, Saudi has controlled the oil markets, which created special opportunities of investment in oil refineries in Saudi Arabia. Distinct chances and horizons that we introduce in this article, so let’s discover them with all details.
About the Investment in Oil Refineries in Saudi Arabia
In reality, this type of investment is truly wide, because it opens numerous horizons and attractive opportunities with many fields, such as the industry, commerce and real estate.
Against this backdrop, the Kingdom comprises plenty of areas that are crowded by the oil refiners. On the other hand, it leads and gives a promising opportunity to develop this sector more and more, which encourages you to invest in Saudi.
The Economical Role of Oil Refineries in Saudi
The oil refineries are considered as the base of chemical and manufacturing industries, leading a revolution in crude oil production and the general economic growth of Saudi.
As a result, it strengthens the industrial networks and reduces reliance on imports, in addition to exporting these products to all other countries.
The Refining Capacity of Saudi
As one of the prominent names in oil industries, Saudi has a great refining capacity exceeding 3 million barrels per day.
In alignment with these efforts, it became one of the top five productive countries in this field, producing a fair enough production to meet the local demands and export it internationally, such as the Saudi Syrian Investment.
Major Oil Refineries in Saudi Arabia
Now let’s take a look at the major oil refineries in Saudi Arabia, including their features and refining capacities.
Saudi Aramco Jubail Refinery Company
A joint project between “Aramco” and “Shell”. This project is managed by SASREF company and located in Jubail Industrial City, with a refining capacity of 305,000 barrels per day.
Ras Tanura Refinery
The largest oil Refinery all over the Kingdom, located in the eastern region of Saudi. This project served by an extensive crude oil transmission network with high production capacity, for example:
- 550,000 thousand barrels per day.
- A center of exporting oil and fuel products,
SAMREF
Located on the Red Sea Coast, as the main exporter of the African and European markets. It’s featured by its perfection with its petrochemical factories and a port, in addition to a productivity that reaches 400,000 thousand barrels per day.
Saudi Aramco-Jazan Refinery
It’s a project within Jazan Economical City in the south. Its refining capacity exceeds 400,000 barrels per day, concentrating on clean fuel and supporting regional development.
Petro Rabigh
This refinery is a part of the Petro Rabigh Project with Sumitomo Corporation. Expanding on this, it produces 400,000 barrels per day, in addition to huge petrochemical units.
Government Efforts in Supporting Oil Refinery Investment
The Saudi government takes the responsibility of supporting this sector, aiming to achieve 2030 vision ambitions. As a result, multiple incentives were created, such as:
SARCO
One of the national pioneer companies in this sector. Also it’s a strategic partner in supporting and establishing refining projects and industrial expansion.
Iktva Program
A program was established by Saudi Aramco, concerned in increasing local content over 70%. It aims to achieve the following:
- Encourage the establishment of factories and services locally.
- Open opportunities for investors to enter supply chains.
- Enhancing industries supporting the refineries.
(SIDF) and (PIF)
The Saudi Industrial Development Fund and the Public Investment Fund offering special support, for example:
- Long term financing.
- Technical and consulting support for companies that want to invest in this sector.
- Facilitating partnerships with the private sector and promoting major projects.
Opportunities of Investment in Oil Refineries in Saudi Arabia
To be indulged in this field, you have to know the investment types and how to invest, so let’s discover what are the two main types as the following:
Direct Investment in Oil Refineries in Saudi Arabia
The oil refineries sector in Saudi includes many partnerships with world wide companies, such as Aramco. In addition to long term operating contracts and privatization opportunities, for example:
Expanding Refineries
Expanding the refineries and increasing the production capacity is the first aim of Saudi, whether local or international projects. These projects needs the expanding and developing, which leads to requiring the following:
- Necessitate major financial investment.
- Specialized contracting companies.
- Technical partners.
- Architectural projects.
Also read about the Investment in Startups in Saudi.
Strategic Partnerships with Aramco
If you are asking yourself, why invest in Saudi Aramco? There are countless advantages of building a partnership with it, through establishing joint ventures or entering fully integrated refinery projects. And these advantages like:
- The stability and high profitability.
- A proven record of transparency.
- The operational efficiency .
- The sustainable projects.
- Long term business contracts.
Operational Contracts
These contracts include numerous opportunities, for example, operations, maintenance, facilities management, industrial security and advanced technical services.
In the same context, these contracts embody a golden chance to enter the Saudi market or expand the operations. Consequently, the operation sustainability is guaranteed with high and stable profits.
Indirect Investment Opportunities
Despite everything we discussed above, the investment in oil refineries in Saudi is also connected with other fields and sectors.
In other words, it creates a series of demands to complete the operational procedures, starting from the industrial services till the residential ones. Here are the prominent indirect opportunities:
Industrial Services
These services comprises various opportunities to invest, such as:
- High pressure equipment.
- Safety and fire fighting systems.
- Industrial cleaning services.
Logistics Services
The ports and roads networks are directly connected with the oil refineries. This reason opens diverse horizons for investors, for example:
- Raw materials and refined products transporting.
- Establishing warehouses and storage facilities.
- Land and sea shipping services.
Real Estate
In reality, the investment in this sector extends to reach the real estate market. No refinery can operate without residential facilities for workers, housing for engineers and administrative stuff.
These needs create promising opportunities for real estate developers and operating companies to invest and provide innovative solutions.
What are the benefits of investing in oil refineries in Saudi Arabia ?
Firstly, this type of investment reflects an opportunity to achieve a stable and sustainable income. The increasing demand for fuel will never finish, especially with depending on it in most industries.
Second, the full support from authorities to this sector, such as initiatives, funding and exemptions, encourages investors to invest. In addition to the developed infrastructure that includes wide ports, modern road networks and fully equipped industrial areas.
Third, the investment is not exclusive about refining. As we mentioned earlier, it’s connected with countless sectors that offer numerous opportunities.
In the end, the investment in oil refineries in Saudi Arabia is only one circle of a giant series that offers multiple opportunities. In Bayut Blog, you can explore the exciting and guaranteed investment opportunities.
