- Canadian expertise in unconventional resource extraction and harsh environment technologies aligns with Saudi Arabia’s goals to develop its unconventional oil and gas resources
- Canadian environmental technologies such as carbon capture, utilization, and storage (CCUS) and water management meet Saudi Arabia's sustainability needs while supporting oil and gas operations
- Canadian artificial intelligence (AI) expertise can help Saudi oil and gas companies optimize production and decision-making by improving efficiency and maximizing recovery
Oil and gas market in Saudi Arabia
The Saudi Arabian oil and gas sector is a global leader, boasting the world's second-largest proven oil reserves and is a significant player in natural gas production. Despite recent OPEC+ production cuts, the long-term industry outlook is positive. Saudi Arabia’s national oil company, Saudi Aramco, is working on expanding gas production, petrochemicals, and low-carbon ventures. This creates opportunities for Canadian companies with expertise in unconventional resource development, environmental technologies, and advanced equipment for harsh environments.
Key opportunities for Canadian oil and gas companies in Saudi Arabia
Notable challenges for Canadian Oil and gas companies in Saudi Arabia
- Navigating Saudi Arabia's government-controlled oil sector with limited transparency and local content requirements.
- Established players with potentially lower prices and strong relationships are key competitors for Canadian companies.
- Canadian companies might have a limited track record in the region. They could be required to make extra effort to establish trust and overcome cultural and business practice differences.
Industry highlights
40%
The oil and gas sector's contribution to Saudi Arabia’s GDP
#2
oil producer in the world, averaging around 10 million barrels per day
$4.3 billion CAD
Total bilateral trade between Canada and Saudi Arabia in 2023
#1
oil exporter in the world, accounting for 11% of global oil supply
Second
largest proven oil reserves in the world, estimated at over 260 billion barrels
#18
within the G20 with a GDP of approximately $1,140 billion
17%
World proven petroleum reserves
Saudi Arabia business landscape
- Saudi Arabia's ambitious Vision 2030 aims to diversify the Saudi economy and lessen their dependence on oil. This creates opportunities in new sectors like renewable energy, hydrogen, and technology, encouraging foreign investment and fostering a more dynamic business environment.
- Saudi Arabia's ambitious Vision 2030 aims to diversify the Saudi economy and lessen their dependence on oil. This creates opportunities in new sectors like renewable energy, hydrogen, and technology, encouraging foreign investment and fostering a more dynamic business environment.
- Succeeding in Saudi Arabia requires a deep understanding and respect for local business practices and cultural norms. Building trust through long-term commitment, and effective communication is essential for establishing a sustainable presence in the market.
- Foreign companies face stiff competition from players such as China, who may offer lower pricing. Also, local content requirements, which mandate sourcing a certain portion of goods and services locally, creates further challenges.
Summary
Building strategic relationships, highlighting innovation, and focusing on niche expertise can help Canadian companies overcome limitations and secure a foothold in this evolving market. Collaboration between Canadian companies and Saudi entities can foster knowledge transfer, technological advancements, and ultimately contribute to the sustainable development of the Saudi oil and gas sector.
For more information on Oil and gas in Saudi Arabia market, please contact mohammedabdullah.zaituni@international.gc.ca.