Saudi shipbuilding sees opportunities in tankers, offshore, and automation

Saudi Arabia’s ongoing strides into the shipbuilding industry were discussed during a panel at the Saudi Maritime & Logistics Congress last week, with speakers agreeing on the importance of developing local talent and embracing technology.

With shipbuilding currently dominated by China, Korea, and Japan, there may be a lesson to learn from other shipbuilding nations which have focused on their own local niches and needs, as well as naval shipbuilding, the panel said.

One significant opportunity for the Kingdom is the vast offshore energy industry just off of its coast, said Alastair Bisset, general manager, Zamil Shipyards.

“If you look at the local market that we largely deal with in refit and maintenance, repair and overhaul (MRO)—the OSVs—there's over 500 vessels operating just off the coast.  Saudi Aramco, our operators, don't want vessels that are more than 15 years old. From a new build point of view, this is good, good news for us,” said Bisset.

With around 23% of the fleet reaching the 15-year age limit in the next three to five years, demand is expected to be high for OSV newbuilding, but major conversions are rare for such ships. The 15-year cycle does support the adoption of new technologies in the region, said Bisset, with Aramco programmes in place to incentivise and develop hybrid propulsion and other innovations.

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“I believe [Aramco] should do more. They should give carbon credits, or an equivalent for the local industry, to ensure that operators invest in and explore new technology. Of course, we don't like to have additional risk in shipbuilding that can delay programs and cost money, but we have to take that bold step forward and start investing in new technologies,” said Bisset.

Answering a question from the audience, Bisset said the 15-year age limit could be seen as arbitrary, especially when comparing a new, poorly maintained vessel to an older well-built ship with high maintenance standards. Overall, Zamil Shipyards’ preference is for consistent enforcement of the rules. “We'd like to see owners also taking a responsible view towards replacement and in particular, looking to build here in the Kingdom,” he added.

Facing the challenge of developing an efficient offering and attracting talent to the shipbuilding sector, Terje Neraas, vice president - business development at IMI said automation and robotics are changing shipyards themselves. 

“We are all in for automation and robotics at IMI. We are not just building a shipyard, we are basically building a supercomputer, and we need bright heads. The future workers in shipyards are not what you see on TV, people of old building Titanic and all that. We are not using clinkers anymore, it's all about technology.”

Neraas said he believes IMI and the broader sector offers work opportunities that are interesting to young people, and that human capital is what matters both for IMI and for Saudi Arabia as it seeks economic growth in the maritime industry.

IMI is working on graduate programmes with Saudi Arabia’s National Maritime Academy (NMA), which was represented on the panel by managing director Turki Al Shehri.

“We need to introduce automation and new technology, because it's a competition. You need to do things faster, more coset effectively, better. Maybe the only thing that we need to focus more in Saudi is developing skills,” said Al Shehri.

NMA was created to answer industry questions on who will operate the technologies and do the shipbuilding in Saudi Arabia. 

“Our aim is to make sure that we bring top class training and education to the kingdom. I know that top class means high cost, but you can't do without it. We are working over the long term to innovate and reduce the cost of training. We will be competitive because we are nonprofit and self-sustainable. We need to exist, and we need to be aligned with the market and the industry, and that’s our goal,” said Al Shehri.

Saudi Maritime & Logistics Congress will return to Dammam on 1-2 October, 2025.