The oil and gas ancillary industry’s market size in Saudi Arabia is estimated to be $100 billion in 2023 and is expected to grow at a CAGR of 5% from 2023 to 2028. The growth of the industry is driven by the increasing demand for oil and gas in the country, as well as the government’s efforts to develop the non-oil sector.
The oil and gas ancillary industry includes a wide range of businesses that provide support to the oil and gas industry. These businesses include:
- Engineering and construction companies
- Oilfield services companies
- Drilling contractors
- Equipment suppliers
- Logistic companies
- Training and consultancy firms
The engineering and construction companies are responsible for designing and building oil and gas infrastructure, such as pipelines, refineries, and power plants. The oilfield services companies provide a variety of services, such as drilling, well servicing, and production optimization. The drilling contractors drill oil and gas wells. The equipment suppliers provide a variety of equipment, such as pumps, valves, and sensors. The logistic companies transport oil and gas products. The training and consultancy firms provide training and advice on oil and gas matters.
The government of Saudi Arabia is taking a number of steps to develop the non-oil sector, including the oil and gas ancillary industry. These steps include:
- Investing in infrastructure
- Providing tax breaks and subsidies
- Promoting research and development
- Developing human capital
The government’s efforts are expected to boost the growth of the oil and gas ancillary industry in Saudi Arabia.
Here are some of the key trends that are shaping the oil and gas ancillary industry in Saudi Arabia:
- The increasing demand for oil and gas: Saudi Arabia is the world’s largest oil exporter and the second-largest oil producer. The increasing demand for oil and gas is expected to drive the growth of the oil and gas ancillary industry in the country.
- The government’s efforts to develop the non-oil sector: The government of Saudi Arabia is taking a number of steps to develop the non-oil sector, including the oil and gas ancillary industry. These steps are expected to boost the growth of the industry.
- The focus on innovation: The oil and gas industry is increasingly focusing on innovation. This is leading to the development of new technologies and services that are helping to improve efficiency and reduce costs.
- The need for sustainability: The oil and gas industry is facing increasing pressure to become more sustainable. This is leading to the development of new technologies and services that are helping to reduce the environmental impact of the industry.
The oil and gas ancillary industry is a key contributor to the economy of Saudi Arabia. The industry is expected to continue to grow in the coming years, driven by the increasing demand for oil and gas, the government’s efforts to develop the non-oil sector, and the focus on innovation and sustainability.
Also read: What are the top emerging Sectors in Saudi Arabia?
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