Saudi Arabia’s Petrochemical Industry Takes Hold in Gulf: Reuters
BANGKOK, Thailand — Saudi Arabia is preparing to import petro chemicals from the United Arab Emirates to help revive its petro industry, with the Gulf nation the biggest buyer of raw materials.
Petrochemistry, the chemical sector that is the heart of Saudi Arabia and the Middle East, has long been a key driver of the kingdom’s economic growth, and the United States and its allies have pushed for greater transparency from its leaders.
The United Arab Emirate’s petro business, known as Gilead Sciences, is one of the largest in the world, accounting for about 20 percent of the world’s production.
It has grown to become one of Saudi’s top export markets.
In addition to petro, the Gulf country has an interest in developing its petrol industry.
It was one of Riyadh’s top oil producers before it was hit by a crippling shortage in 2016.
Saudi Arabia was also one of several Arab states to cut off U.S. oil imports last year, after President Donald Trump announced he was considering tariffs on some imported oil from the U.K. to retaliate against the kingdom.
Saudi Arabia also has its own petro chemical industry, which produces chemicals and fertilizers, and has become the second largest producer of petro in the Gulf.
The kingdom has also been seeking to diversify its economy by developing an advanced manufacturing industry.
Last year, the country created an autonomous regional economic unit, which includes industries in the energy, transportation and mining sectors.