Saudi Arabia Restores Key Oil Pipeline to Full Capacity
Saudi Arabia has fully restored oil flows through its East-West pipeline, which had been targeted by Houthi attacks, reaching 5.8 million barrels per day by Tuesday morning. Energy Minister Prince Abdulaziz bin Salman announced this at the Made in GCC Forum in Bahrain, stating, “The East-West pipeline that was heavily attacked is operational now.” The pipeline, which can handle up to seven million bpd, had been shut down following an attack last month, but engineers successfully revived operations to help offset global supply disruptions caused by the blockade of the Strait of Hormuz.
Prince Abdulaziz emphasized the need for resilience and preparedness, highlighting the importance of relying on Gulf capabilities to meet energy, medicine, and food demands. He noted that 70 percent of the workforce in Saudi Arabia’s vital sectors are Saudis, which provides greater flexibility and resilience during disruptions. “Localisation gives us greater flexibility and ability to withstand disruptions,” he said, adding that having multiple logistical options was crucial in managing the crisis.
Meanwhile, Gulf states are pushing for deeper industrial integration to turn economic vulnerabilities into opportunities. Bahrain’s Minister of Industry and Commerce, Abdulla bin Fakhro, called for enhanced production within the region and greater cooperation across supply chains. The GCC imports over $600 billion worth of goods annually, but intra-GCC trade stands at just $46 billion. Mr. Bin Fakhro asked, “How many of the products, components and intermediate materials we import today can we manufacture here in the Gulf?” He stressed that focusing on domestic production would create new factories, investment, and skilled jobs while strengthening the region’s ability to withstand future shocks.
GCC Secretary General Jasem Mohamed Albudaiwi noted that the bloc already has a substantial industrial base, with more than 22,000 factories employing about 1.7 million workers. He called for the six member countries to move beyond separate national industrial strategies toward a more integrated manufacturing system. The GCC is developing 20 joint industrial investment opportunities, with the first package already approved by its Industrial Co-operation Committee.