Ready for anything • Chapter summary
The arrival of the pandemic into Saudi Arabia triggered a fluctuation in the price of oil not seen since the 1970s oil crisis. The oil sector has always prided itself on having a hard stomach and figures across the industry were able to use their vast experience to weather the volatility throughout 2020. Arriving into 2021, Energy Minister Prince Abdulaziz bin Salman has indicated a bold approach that seeks to shore up Saudi Arabia’s grip on the global supply of oil even further. The increase in oil prices, up from where they were last year, reflects this renewed commitment as well as the positive impact arising out of the vaccination campaign and easing over restrictions across Europe, Norther America, and Saudi Arabia.
In our survey of the energy and water industries over the course of 2020 and 2021, it is the latter than holds much more interest. The efforts in maintaining the supply of water across the Kingdom earnt international renown. For instance, the Saline Water Conversion Corporation (SWCC) set a Guinness world record in reducing energy consumption in water desalination. Indeed, the SWCC was able to supply water to all its beneficiaries with high reliability despite increased demand during the lockdowns and supply issues around the world. The SWCC secured the water supply for urban uses of over 70% of the Kingdom’s water needs. At a time when security of food and water seemed precarious, the sector’s public entities stepped up, rising to the challenge in timely fashion.
While the public sector remains the main player in the water sector, their private peers have benefitted from significant reforms that were able to continue a pace during the pandemic. As part of Vision 2030, the private sector has its own National Water Strategy 2030 in which the Saudi Water Partnership Company (SWPC) has played a pivotal role in overseeing the awarding of PPP contracts for desalination and waste projects. The result is that the water sector has proliferated to boast this year a large number of international and local players that are sure to continue to maximize their potential going ahead.