Al-Jadaan lauds East-West pipeline role in easing global energy crisis

Saudi Finance Minister Mohammed Al-Jadaan

Saudi Finance Minister Mohammed Al-Jadaan said the Kingdom’s huge investments in the East-West pipeline played a key role in containing global oil supplies and mitigating the impact of the energy crisis.

Addressing a panel session at the Future Investment Initiative held in Miami, US, Al-Jadaan noted that Saudi Arabia has invested heavily in the pipeline over the past 50 years without immediate returns.

He explained that the sectors most affected by the ongoing conflict are not oil itself, but related industries such as refined products, fertilizers, steel, aluminum, petrochemicals, etc.

The minister also stressed the need to resolve disruptions in these sectors quickly to avoid further damage to the global economy.

Al-Jadaan added that recent supply chain disruptions have exceeded those seen during the COVID-19 pandemic, warning that continued instability could have even greater consequences.

Investors are currently focused on certain factors, mainly certainty and stability, economic resilience, growth potential and long-term planning, said the minister.

“Of course, they will seek adjusted risk and adjusted insurance…The countries that are able to attract investment—including Saudi Arabia—are those that offer flexibility and effective risk management,” he added.