HOUSTON: Amin Nasser, chief executive of Saudi Aramco, said the oil and gas industry must “push back” against suggestions that oil demand is in long term decline and that Saudi energy assets will be left “stranded” in the ground as alternative energy sources are developed.
In a keynote address at the CERAWeek by IHS Market gathering of top energy experts in Houston, Texas, Nasser also warned that the oil market faces “multiple downside political risks,” and needs $20 trillion of investment over the next 25 years — the size of the American economy.
He was speaking on the 80th anniversary of the discovery of oil in Saudi Arabia, when American geologists found significant reserves of crude in Dhahran, which led to the creation of Saudi Aramco.
“Today I want to be clear about what really lies ahead for our industry, and the actions we must take to secure that future,” he said.
“We must leave people in no doubt that misplaced notions of ‘peak oil demandʼ and ‘stranded resourcesʼ are direct threats to an orderly energy transition and energy security,” he said, adding: “Oil and gas will continue to play a major role in a world where all energy sources will be required for the foreseeable future.”
On the current oil market, he said market fundamentals were healthy. “Despite recent volatility in the financial markets, the broad-based recovery in the global economy remains on track. It is particularly encouraging to see expectations of stronger economic growth in the emerging and developing world because that is where most oil demand growth is expected to be. Oil demand globally also remains healthy,” he said.
Nasser pointed to flaws in all the various alternatives that have been advocated as future energy sources.
“The hot topic in energy transition is the future role of oil in transport. At the heart of it is the light duty road passenger vehicles segment (cars) that accounts for about 20 percent of global oil demand today. Many wrongly believe that it is a simple matter of electric vehicles quickly and smoothly replacing the internal combustion engine,” he said.
The future for alternatives to the motor car and internal combustion engine was “far more complex,” he said.
“In fact, there are five strong technology horses racing each other to become the powertrain of the future — advanced internal combustion engines; hybrid electric vehicles; plug-in hybrid vehicles; pure battery electric vehicles; and hydrogen fuel cell vehicles. The first three are powered by an internal combustion engine. And let us not forget that more than 99 percent of the passenger vehicles on the road today have an internal combustion engine and will be with us for a long time,” he pointed out.
The transformation of the motor industry was still unclear, Nasser said. “In fact, some of the most disruptive technologies are only just emerging, including highly advanced integrated engine-fuel systems like the ones our researchers are working hard on at Saudi Aramco in collaboration with car and truck engine manufacturers.
“So, given the world’s focus on climate change, there should be a global priority on improving the efficiency and lowering carbon emissions from internal combustion engines as well as fuels, especially when the other two horses in the race — pure battery electric vehicles and hydrogen fuel cell vehicles — still face a range of problems,” he added.
There were other factors that further complicated the search for oil alternatives. “There are also major hurdles before alternatives can be deployed at scale. Affordability is one, as customers continue to place great importance on up-front costs, especially in developing nations. Another is that it will become increasingly difficult for governments to subsidize such enormous numbers, although this is often glossed over,” Nasser said.
“It will require massive infrastructure, which is particularly challenging in developing nations as they are least well-equipped and can least afford this in the face of other economic and social priorities. Yet the majority of vehicle growth will be in those very same nations.”
Analysts estimate that traditional motor car usage accounts for 20 percent of global oil demand, but that figure is complicated by future demographic trends.
“Further adding to the complexity will be the extra two billion people on the planet by 2050, a world economy three times its current size., and a global middle class that will reach five billion by 2030 – with two-thirds of it in Asia driving consumption. These macro factors will only grow demand for road passenger transport,” Nasser said.
“So, yes, battery electric vehicles will grow and have a welcome role to play in global mobility. But given the competition and complexity of the transition, their impact on the 20 percent oil demand should not be exaggerated,” he added.
The rest of the demand side presented great opportunities for oil producers, he said. “In petrochemicals alone, oil use is expected to increase by almost 50 percent, while the number of air passengers each year is expected to almost double to 8 billion over the coming two decades.”
There were also new outlets being developed for Aramco products, he insisted. “For example, Saudi Aramco recently signed an agreement centered on a potential breakthrough technology that will directly convert up to 70 percent of a barrel of crude into petrochemicals.
“This could transform the role of oil as a major petrochemical feedstock, substantially lighten the carbon footprint of oil consumption because of its non-combustible nature, and reduce costs by 30 percent, and become a large and reliable outlet for our future oil production,” he said.
“I also see huge potential in producing advanced materials for use in a wide range of high growth industries. Just imagine a future where skyscrapers, cars (including electric ones!), and even our own pipelines are built with these advanced oil-based materials.
“Looking further ahead, if we combine hydrogen from oil with carbon capture, utilization, and storage then green hydrogen comes within reach – not only for transport but also power and heat,” he added.
Oil and gas will continue to play a major role in a world where all energy sources will be required for the foreseeable future.
But he insisted that the energy industry needed action in four main areas to enable it to face the future:
“First, we need to expand exploration. Last year, only 7 billion barrels equivalent of oil and gas combined were discovered, which is among the lowest on record.
“Second, we must not only meet the growth in oil demand but also offset a large natural decline in developed oil fields. Even conservative estimates suggest about 20 million barrels per day of new capacity is required over the next five years,” Nasser said
“Third, our industry needs more than 20 trillion dollars over the next quarter century to meet rising demand for oil and gas (including in aging infrastructure). That is virtually the size of the US economy, and we have already lost 1 trillion dollars of investments since the downturn.
“This staggering amount will only come if investors are convinced that oil will be allowed to compete on a level playing field, that oil is worth so much more, and that oil is here for the foreseeable future,” he said.
“That is why we must push back on the idea that the world can do without proven and reliable sources. We also need an environment that encourages long-term investments, as we are seeing here in the United States, and in Saudi Arabia with our ambitious Vision 2030,” Nasser added.
Finally, he said, we need to intensify our efforts to both enhance current technologies as well as create new, game-changing ones. That requires us to devote more resources to longer term research, particularly low-to-no carbon products. And it means regulators must be policy holistic and technology agnostic – let the market decide,” he said.
‘Oil and gas will continue to play a major role in the world,’ says Aramco’s Nasser
‘Oil and gas will continue to play a major role in the world,’ says Aramco’s Nasser
Closing Bell: Saudi main index rises to close at 11,202
- Parallel market Nomu gained or 0.72% to close at 27,248.13
- MSCI Tadawul Index rose 1.07% to close at 1,434.07
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 134.37 points, or 1.21 percent, to close at 11,202.64.
The total trading turnover of the benchmark index was SR5.08 billion ($1.35 billion), as 218 of the stocks advanced and 31 retreated.
The Kingdom’s parallel market Nomu gained 195.03 points, or 0.72 percent, to close at 27,248.13. This comes as 57 of the listed stocks advanced while 30 retreated.
The MSCI Tadawul Index gained 15.19 points, or 1.07 percent, to close at 1,434.07.
The best-performing stock of the day was Saudi Industrial Development Co., whose share price increased 10 percent to SR30.14.
Other top performers included Naseej International Trading Co., whose share price rose 9.99 percent to SR 96.00, as well as Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, whose share price rose 9.97 percent to SR 22.39. According to Tadawul, Cenomi Retail’s shares also jumped by 100 percent in two months despite a sell recommendation from research houses.
Specialized Medical Co. recorded the most significant drop, falling 1.88 percent to SR22.92.
Americana Restaurants International PLC — Foreign Co. saw its stock prices fall 1.26 percent to SR2.35.
Nahdi Medical Co. also saw its stock prices decline 1.24 percent to SR127.20.
On the announcements front, Etihad Atheeb Telecommunication Co., also known as GO Telecom, has announced its annual consolidated financial results for the period ending March 31.
According to a Tadawul statement, the firm recorded a net profit of SR223 million during the year, reflecting a 14.36 percent increase compared to the same period a year earlier. The climb is attributed to an increase in revenue of SR446 million, offset by a rise in the cost of revenue of SR320 million, an upsurge in expected credit losses on trade receivables of SR24.6 million, and a growth in general and administrative expenses of SR24 million.
There was also a decrease in financing costs by SR690,000 due to the recognition of commission income on Islamic deposits during the current year, amounting to SR20 million.
GO Telecom has decided to distribute SR10.1 million worth of cash dividends to the company’s shareholders for the fiscal year ending on March 31. According to a Tadawul statement, the number of shares eligible for dividends stands at 33.99 million, with a dividend per share of 30 halals and a dividend percentage to the share par value of 3 percent.
GO Telecom ended the session at SR105.00, up 2.49 percent.
The Saudi Exchange has approved Saudi Azm for Communication and Information Technology Co.’s request to transfer from Nomu — Parallel market to the main market, with a capital of SR30 million and 60 million shares.
The company’s shares will remain listed on Nomu – Parallel market until the deadline for publishing the transfer document.
The issuer is required to publish the transfer document within three trading days after the Saudi Exchange announces its approval of the transfer request. The transfer document will be accessible to the public for 10 trading sessions through the websites of the issuer, Tadawul, and the financial adviser.
Tadawul also approved Obeikan Glass Co.’s request to transfer from Nomu — Parallel market to the main market, with a capital of SR320 million and 32 million shares.
Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity
- Leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion
- Umm Al-Qura for Development and Construction Co. raised $523.1 million
RIYADH: Saudi Arabia’s equity capital market maintained strong momentum in the first half of 2025, with six companies raising a combined $2.8 billion through initial public offerings on the main Tadawul exchange.
According to an analysis by Forbes Middle East, leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion ($1.1 billion) in what marked one of the region’s largest aviation listings.
The rise in IPO listings comes amid broader financial reforms in Saudi Arabia, as the Capital Market Authority introduces new frameworks — including regulations for special purpose acquisition companies — aimed at expanding funding avenues and enhancing private-sector participation.
In its analysis, Forbes stated: “The momentum underscores investors’ growing appetite for sectoral diversification across aviation, healthcare, finance, and industry, while affirming Riyadh’s long-term bet on privatization and public market expansion under Vision 2030.”
The flynas IPO drew overwhelming demand, with institutional subscriptions oversubscribed nearly 100 times, and the retail tranche covered 349.7 percent. The offering comprised 51.3 million ordinary shares, representing 30 percent of the company’s post-offering capital.
“In 2024, flynas generated $2 billion (SR7.6 billion) in revenue, marking an 18.8 percent increase from the previous year, while net profit rose 8 percent to $115.6 million (SR433.5 million),” the analysis added.
As of June 14, the airline was operating 139 routes, connecting over 70 domestic and international destinations across 30 countries, with a weekly schedule exceeding 2,000 flights.
Diverse listings
Forbes also highlighted several other notable IPOs that reflect diversification across key sectors.
Umm Al-Qura for Development and Construction Co. raised $523.1 million by selling 130.7 million shares at $4 each — representing 9.09 percent of its total capital.
The company leads the Masar destination project, a major development transforming the western gateway of the Holy City, featuring hotels, residential units, retail spaces, and infrastructure.
Aligned with Saudi Arabia’s drive to boost religious tourism, the IPO proceeds will support ongoing construction, improve transport connectivity, and attract global hospitality brands in line with national tourism goals.
Among the companies to list this year was Riyadh-headquartered SMC Healthcare, which raised $500 million through its Tadawul debut, reflecting growing investor appetite for healthcare stocks as the Kingdom expands private sector involvement in the industry. The IPO comprised 75 million shares priced at $6.70 each, representing 30 percent of the company’s total share capital.
Derayah Financial, an asset management and brokerage firm, is another company that secured $399.6 million through its offering. Shares were priced at $8 each and attracted strong interest from both retail and institutional investors, supported by the company’s digital-first model and established brand presence.
In February, Derayah offered 20 percent of its share capital — 49.9 million shares — through a listing on the Main Market, providing investors access to its expanding digital investment platform.
The stock was listed in March. By the end of the first quarter, Derayah reported 555,000 client accounts, while assets under management rose 5 percent year-to-date to $4.8 billion.
This year also saw United Carton Industries Co. raise $160 million by offering 12 million shares at $13.30 each, representing 30 percent of its capital. The company is expanding capacity to meet rising demand for corrugated packaging, a key input in Saudi Arabia’s growing industrial sector.
Arabian Co. for Agricultural and Industrial Investment, also known as Entaj, raised $120 million through a February IPO. The poultry producer floated 9 million shares, leveraging strong demand amid the Kingdom’s drive to enhance local food security. Entaj nearly doubled its daily processing capacity to 600,000 birds by the end of 2024.
Regional dominance
The rise in listings reinforces Tadawul’s position as the Arab world’s most valuable stock exchange. According to the Arab Federation of Capital Markets, the Saudi exchange accounted for 62 percent of total market capitalization across regional bourses in 2024, far ahead of the Abu Dhabi Securities Exchange, which held 18.6 percent.
Tadawul's benchmark TASI index ended December 2024 at 12,037 points, up 3.39 percent month-on-month. Average daily trading value reached SR5.2 billion, while total monthly trading volume stood at SR119.6 billion, according to the Arab Monetary Fund.
Analysts expect IPO momentum to continue in the second half of 2025, especially in energy-adjacent sectors, fintech, and transportation, as the Capital Market Authority accelerates approvals and Vision 2030-linked corporates seek broader capital access.
The Saudi stock market was among the region’s top performers in December, buoyed by improved liquidity and investor confidence. TASI closed the month at 12,037 points, with daily trading values averaging SR5.2 billion and total trading reaching SR119.6 billion, the Arab Monetary Fund reported.
Aramco cuts July propane, butane prices amid market shifts
- Oil giant set propane at $575 per tonne and butane at $545 per tonne
RIYADH: Saudi Aramco has lowered its official selling prices for propane and butane for July 2025, reflecting changing global market dynamics.
In a statement released on Sunday, the oil giant set propane at $575 per tonne and butane at $545 per tonne—both down $25 from the previous month. The adjustment continues a downward trend driven by evolving supply-demand conditions.
Propane and butane, classified as liquefied petroleum gases, are essential fuels for heating, transport, and petrochemical production. Aramco’s monthly pricing serves as a key benchmark for LPG shipments from the Middle East to the Asia Pacific.
The global LPG market is undergoing a reshuffle as China shifts away from US imports due to steep tariffs, increasingly turning to Middle Eastern suppliers. In turn, American cargoes are being rerouted to Europe and other parts of Asia.
This realignment is putting pressure on global LPG prices and weakening demand for US shale byproducts, impacting both American shale producers and Chinese petrochemical firms. Meanwhile, the trend is spurring greater interest in alternative feedstocks like naphtha.
Middle Eastern exporters are benefiting from the shift, stepping in to fill the gap left by falling US exports to China. Buyers in Asia, including Japan and India, are also taking advantage of the softer prices to strike more favorable supply deals.
Egypt to offer Hurghada airport to private sector by end of 2025
- President El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships
- Plan supports Egypt Vision 2030
RIYADH: Egypt plans to offer Hurghada International Airport to the private sector by the end of 2025 as part of a broader strategy to modernize its aviation sector and attract foreign investment, President Abdel Fattah El-Sisi said.
The announcement came during a meeting in Al-Alamein City with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah, where El-Sisi reviewed the national roadmap for enhancing civil aviation infrastructure and operations.
The move forms part of a national strategy designed in partnership with the International Finance Corp., which is advising on a new public-private participation model for the country’s airports. The framework is expected to be finalized by summer 2025 and will target 11 major airports while maintaining public ownership.
In an official post, Ambassador Mohamed El-Shenawy, spokesman for the presidency, said the meeting reviewed the comprehensive strategic vision for the advancement of the entire civil aviation sector, including air navigation, aircraft fleet development, airport upgrades, and enhancement of human resource capabilities.
“These efforts are part of the state’s broader plan to improve the efficiency of the aviation sector, increase its capacity, and enhance the quality of services provided to travelers, in support of the national goal to raise the number of tourists to 30 million,” the post added.
El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships centered on efficiency and sustainability, while ensuring an attractive investment environment that guarantees economic feasibility and long-term growth.
The plan supports Egypt Vision 2030, the country’s national development blueprint, which includes transforming airports into regional aviation hubs equipped with the latest global systems.
El-Sisi also reviewed the “New Republic Air Gateway” project at Terminal 4 of Cairo International Airport. Once completed, the new terminal will increase the airport’s capacity by at least 30 million passengers, pushing total throughput beyond 60 million annually.
The project is designed in line with international standards for safety, security, and environmental sustainability.
The meeting also touched on Egypt’s achievements in air navigation, especially during recent regional airspace closures that increased daily traffic to over 1,600 flights.
According to the presidential spokesman, organizations including Eurocontrol, the International Civil Aviation Organization, and the International Air Transport Association praised Egypt’s air traffic controllers for maintaining operational stability and service continuity.
Additionally, the meeting highlighted EgyptAir’s recent successes. The national carrier was named “Best Airline Staff in Africa” for 2025 by Skytrax at the Paris Air Show.
Other accolades included Best Economy Class Meals, Most Improved Airline in Africa for a second consecutive year, and Best Cabin Crew in Africa.
The airline advanced 20 positions in the global ranking to 68th place out of more than 325 carriers.
The minister said EgyptAir plans to expand its fleet to 97 aircraft by 2028-29. Efforts are also underway to upgrade in-flight services, infrastructure, and ground operations, as well as enhance lounge amenities and punctuality.
These initiatives are aimed at strengthening the airline’s global competitiveness and overall passenger experience.
Oman’s GDP grows 4.7% as non-oil sectors expand
- Agriculture, services, and construction exports lead economic growth
- Industrial activities rose 2.8% to 1.97 billion rials
RIYADH: Oman’s gross domestic product at current prices grew by 4.7 percent year on year in the first quarter of 2025, reaching 10.53 billion Omani rials ($27.3 billion), compared with 10.06 billion rials during the same period in 2024.
Preliminary data released by Oman’s National Centre for Statistics and Information attributed the increase primarily to stronger performance in non-oil activities, which grew 4.1 percent to 7.13 billion rials compared to 6.85 billion rials a year earlier.
Across economic sectors, agriculture and fisheries posted the highest growth rate, expanding 11.1 percent to 326.6 million rials.
Industrial activities rose 2.8 percent to 1.97 billion rials, while services activities grew 4.2 percent with a total contribution of 4.84 billion rials to GDP.
Oil activities also contributed to the overall expansion, recording a 6.8 percent increase in value-added, reaching 3.71 billion rials by the end of the first quarter of 2025, up from 3.47 billion rials in the same period of 2024.
While crude oil activities declined 7.5 percent to 2.74 billion rials, natural gas activities saw a marked increase of 89 percent, with value-added rising to 970.8 million rials.
This performance comes as Oman continues to strengthen non-oil sectors and diversify its economy.
Earlier in June, Credit Oman reported that insured non-oil exports reached 61.2 million rials in the first quarter, a 6 percent increase from the same period last year, driven by higher shipments of construction materials, petrochemicals, mining products, and agricultural goods.
Overall, the sultanate’s broader non-oil exports rose 8.6 percent to 1.61 billion rials, accounting for 28.6 percent of total exports.
The government is also pursuing fiscal reforms to support long-term growth. Under a royal decree, Oman will become the first Gulf country to introduce personal income tax, imposing a 5 percent levy on taxable income exceeding 42,000 rials per year starting in 2028.
The measure is expected to apply to about 1 percent of the population.
Earlier in June, the country’s residential property market was reported to have shown renewed strength.
Official data from Oman’s National Centre for Statistics and Information indicated that residential property prices rose 7.3 percent year over year in the first quarter, led by a 6.5 percent increase in residential land values, which form the largest component of the real estate index.
Apartment prices rose 17 percent in May, while villas gained 6.4 percent, and other residential units increased 2.2 percent. The overall residential real estate price index advanced 5.5 percent quarter over quarter.
The gains reflect a broader regional upswing in property activity during early 2025.
