Saudi Arabia's Strategy in Associated Natural Gas Investment and its Impact on Industrial Transformation (1980-1985): A Historical Analytical Study

Abstract

Natural gas is a cornerstone of national economies and a primary source of clean energy that supports sustainable development. Saudi Arabia's Vision 2030 has spearheaded serious efforts to optimize investment in this sector. This study aims to review Saudi Arabia's strategy for investing in associated natural gas and its impact on industrial transformation (1980-1985). It serves as a historical and analytical study of the Kingdom's ambitious natural gas investment strategy, examining its impact on maintaining a clean environment and supporting decision-makers in promoting sustainable economic development. The study focuses on analyzing the policies and strategies adopted by the Kingdom to develop the natural gas sector, enhance integration between the energy and industry sectors, support industrial cities, measure the industrial impact of this strategy, and evaluate its role in achieving sustainability. The study's main idea stemmed from recognizing the importance of natural gas investment in achieving the desired industrial transformation in the Kingdom and the resulting economic diversification. This involves encouraging a reduction in reliance on oil as the primary source of manufacturing and revenue, and exploring vital alternatives such as associated natural gas. The study raises the question of the positive and effective relationship between natural gas investment and industrial growth, examining the period between 1980 and 1985 and whether there are benefits to investing in it within industry. It also explores the extent to which natural gas contributes to reducing production costs and creating job opportunities. The study focused on analyzing the period between 1980 and 1985, which represents a turning point in the Kingdom's policy towards associated natural gas. Therefore, the descriptive and inductive methods were used to gather data. The results demonstrated the Kingdom's significant and distinctive interest in investing in associated natural gas as a crucial development resource and an alternative energy source for achieving economic prosperity and sustainable development. The study recommends working on the regional connection of the natural gas transmission network due to its economic and political importance. It also recommends urging the intensification of government initiatives to involve the private sector in the energy and petrochemical industries.