Renewable energy will be needed

Riyadh: Dr Hashim Yamani, president of King Abdullah City for Atomic and Renewable Energy, has said that the kingdom's consumption of oil will amount to eight million barrels per day (bpd) by 2028 as more oil will be needed for transportation, industry and to geanerate electricity.

He said huge consumption would hinder Saudi Arabia's capability to meet global demand for oil, adding that this would require a search for alternative and renewable energy.

Adressing the fifth Global Competitiveness Forum in Riyadh on Sunday, Yamani said that Saudi Arabia was planning to cut consumption of fossil fuels by generating more electricity using nuclear and renewable energy.

He expected the kingdom to reduce its dependence on fossil fuels by 2050 and increase its oil exports.

He pointed out that demand for electricity would rise to triple its current level of 40 gigawatts, to 120 gigawatts by 2050.

Yamani, who spoke on the final session of the first day of the Global Forum, said the kingdom enjoyed high annual population growth of 3.8 per cent while the growth of industrial sector was 3.1 per cent in 2009.

He described Saudi Arabia as "the kingdom of energy" as it has huge reserves of oil and gas and ranks fifth globally in terms of utilisation and storage of gas. Yamani predicted a 27 per cent increase in demand for oil over the next four years.

He said dependence on qualitative energy was a key demand as local industries were relying upon it by 12 per cent.

He pointed out that according to a survey conducted by the King Abdullah City for Atomic and Renewable Energy, more than 200 nuclear reactors around the world are under construction, including 57 in China, 24 in India, 24 in Russia and 14 in Japan in addition to 75 in other countries.

Nuclear power station

Yamani refused to say when the first nuclear power station would be built in Saudi Arabia.

French nuclear company Areva was expected to reach a deal with Saudi Bin Laden for nuclear reactor projects in the kingdom.

Meanwhile, Saudi Fin-ance Minister Dr Ebrahim Al Assaf said he expected Saudi GDP to grow by four per cent this year.

Al Assaf told the forum inflation was easing in the kingdom but the government was still cautious.

"Saudi Arabia will proceed with its infrastructure investment plan with allocations of at least $400 billion (Dh1,468 trillion) till 2013," he said.

The fifth Global Competitiveness Forum, conducted by the Saudi Arabian General Investment Authority (SAGIA) kicked off on Sunday under the theme "Innovation as a Means to Competitiveness".

More than 2,500 senior personalities are taking part in addition to 180 reporters from around the globe.

Jim Albaugh, President and CEO of Boeing, underlined the importance of investment in IT and manpower.

He lauded the Custodian of the Two Holy Mosques' initiative to support innovation and allocate 25 per cent of the state budget to education.

David Drummond, Google deputy chief for development, said innovation was a key to economic success.

He said 70 per cent of the Arab world was using the internet and that Saudis were in the top rank in terms of their capability to use technology.