Saudi Arabia had restored oil flows through its East-West pipeline, which had come under Houthi attacks, to 5.8 million barrels per day by Tuesday morning, its Energy Minister said.
Prince Abdulaziz bin Salman told the Made in GCC Forum in Bahrain: “The East-West pipeline that was heavily attacked is operational now. Today around 5.8 million barrels of oil [flows] through the pipeline.”
Operations were halted at the kingdom's main cross-country pipeline, which has a capacity of up to seven million bpd, after an attack last month. But engineers have managed to restore the flow to replenish global supplies disrupted by the blockade of the Strait of Hormuz.
Prince Abdulaziz stressed the importance of resilience, preparedness and developing the skills needed to support future industries. “Gulf countries have witnessed many issues since [the] Iraq-Iran war and the invasion of Kuwait until today. The most important lesson is the supply and logistics chains,” he said.
He said one of the most important lessons was the need to rely on Gulf capabilities to meet energy, medicine and food demand.
“The development of industries and the transformation of the raw materials available to us into products to meet our needs should go hand in hand with innovation,” he added. “Without it, we risk becoming consumers of technologies rather than producing it.”
Prince Abdulaziz said 70 per cent of the workforce in the kingdom's vital sectors are Saudis. “Localisation gives us greater flexibility and ability to withstand disruptions. Having multiple logistical options was one of the key factors that enabled us to deal with the crisis.”
Manufacturing push
The Gulf states are seeking to turn the economic vulnerability exposed by the Iran war into a push for deeper industrial integration, with officials calling for enhanced production within the region and greater co-operation across supply chains.
Also speaking at the inaugural Made in GCC Forum was Abdulla bin Fakhro, Bahrain's Minister of Industry and Commerce, who said the test for the Gulf was not simply to recover from the energy crisis but to use the experience to strengthen its economic base.
“The GCC region has faced exceptional significant security challenges this year as our countries were subjected to a fierce Iranian aggression but we proved that we can protect our countries and overcome the challenges,” he said at the three-day event, being held at Exhibition World Bahrain from October 6 to 8.
The Gulf now has an opportunity to capture a greater share of the goods it currently imports, he added.
Gulf countries import more than $600 billion worth of goods a year, while the combined economy of the six states is worth about $2.4 trillion, he said. Intra-GCC merchandise trade, however, stands at only about $46 billion.
“How many of the products, components and intermediate materials we import today can we manufacture here in the Gulf?” Mr Bin Fakhro said.
A focus on domestic production would lead to new factories, investment and the creation of skilled jobs, while strengthening the region's ability to withstand future shocks.
“We want to move from successful national industries towards an integrated Gulf industrial ecosystem,” Mr Bin Fakhro added. “We want it [Made in GCC] to become a Gulf economic and industrial identity representing quality, reliability and innovation.”
Meanwhile, GCC Secretary General Jasem Mohamed Albudaiwi said the bloc already has a substantial industrial base, with more than 22,000 factories employing about 1.7 million workers.
Gulf industries contribute about 3 per cent of the region's GDP, he said, but called for the six member countries to move beyond separate national industrial strategies towards a more integrated manufacturing system.
“When we integrate our industrial capabilities and align our policies, we can achieve greater prosperity for all our countries,” Mr Albudaiwi said.
The GCC is developing 20 joint industrial investment opportunities, he added, with the first package already approved by its Industrial Co-operation Committee.
