Guest Q&A|AL-FAGEEH: East-West Asia Energy Synergy Fuels Growth

摘要：Amid Asia's energy transition, what complementary advantages do East Asian andWest Asian countries have in terms of energy resourc

Amid Asia's energy transition, what complementary advantages do East Asian andWest Asian countries have in terms of energy resources, technology, and capital? How canthey better leverage these advantages to promote cooperation in the energy transition?

Abdulrahman AL-FAGEEH

BFA BoardMember & SABIC CEO

East and West Asia bring complementary strengths to the energy transition, presenting a once-in-a-generation opportunity for economic growth that extends beyond the energy transition into broader industrial transformation.

West Asia, led by Saudi Arabia, is a global hub for energy supply, offering strategic advantages to support Asia's energy transition. As a reliable energy supplier, Saudi Arabia is advancing low-carbon solutions through the Saudi Green Initiative and Circular Carbon Economy framework. With capital deployment through the Public Investment Fund (PIF), Saudi Arabia also drives investments in clean energy infrastructure across Asia.

East Asia, with China, Japan, and South Korea at the forefront, excels in technology development, manufacturing innovation, and renewable-electricity generation and use. In addition, China's Belt and Road Initiative supports the development of infrastructure for trade, including roads, railroads, seaports, and the like. By combining West Asia's great potentials, including energy resources and raw materials, with East Asia's technological and infrastructure expertise, synergistic value chains can be forged for clean energy solutions and sustainable materials.

To fully leverage these potential synergies, however, collaboration at multiple levels and across a range of economic sectors is crucial. Deep understanding and broad relations among countries and industries in Asia are what drives this kind of sustainable development effectively.

As an example, take SABIC's growth in China, one of its most important markets. Since entering China in the 1980s, SABIC has established manufacturing plants, sales and marketing offices, supply chain networks, and a world-class technology center there. The latest addition to this collection of assets will be a world-scale petrochemical complex that SABIC began constructing last year with the Fujian Energy and Petrochemical Group. With an estimated total investment of RMB 44.8 billion, this project is a shining example of cross-regional win-win cooperation.

I believe that SABIC provides a good model for other Asian companies to follow. If they cut across institutional boundaries to establish sustainable synergies like SABIC has, then they can constructively overcome common challenges while driving economic growth.