Saudi Arabia needs $120 billion to pay its electricity bill until 2020, a Saudi minister says. Industry Minister, Hashem Yamani said last week that a study by his ministry found that by 2020, the kingdom would need to increase electrical power generation by 70,000 megawatts at a cost of SR438 billion ($120 billion).
Yamani said 45 percent of the SR438 billion would be used on generating, 7 percent would go for transport, and 39 percent on distribution. Yamani said in the next 25 years, the energy demand would grow 4.5 percent.
In another development, Yamani announced that Saudi Arabia would start building several industrial cities in addition to the six currently being built. Saudi Arabia has two giant industrial cities in Jubail and Yanbu. Overall industrial production has generated SR18.7 billion annually.
The local market buys SR15 billion worth of the industrial products. Local production has grown in record time, Yamani said, he said production of consumer goods covers the need of the local market and some products are exported. Revenues from none petroleum products were SR20 million in 1999, Yamani said. –(Albawaba-MEBG)