Saudi Arabia’s Finance Minister Mohammed Al-Jadaan has said energy security is “a fundamental pillar for achieving development and inclusive growth,” rather than a luxury. Speaking at the OPEC Fund for International Development Forum 2025 in Vienna, Al-Jadaan highlighted the importance of reliable energy access for the stability of essential sectors like healthcare, education, productivity, and food and water systems.
“With rising geopolitical tensions, market volatility, and surging global energy demand, it has never been more urgent to achieve a more secure and diversified energy landscape,” he said.
As part of his remarks, the minister presented a four-point policy proposal aimed at strengthening energy resilience, particularly through reforms in multilateral development banks.
His first recommendation urged support for all energy sources without bias. He cautioned that emissions-based policies which disregard significant energy contributors could destabilise global markets and unfairly affect developing nations.
The second point called for an increase in concessional financing to reach regions most in need. Al-Jadaan praised efforts such as the World Bank’s “Mission 300” initiative, which is designed to bring energy access to 300 million people across Africa. He also acknowledged the roles of the Islamic Development Bank and the OPEC Fund in this area.
On the third point, the minister focused on reducing risks associated with private sector investments in the energy field. He mentioned tools such as partial risk guarantees, political risk insurance, and blended finance as essential instruments to attract capital for energy projects, especially in low-income and higher-risk environments.
“These tools help mitigate expected risks and enhance the bankability of energy projects, especially in low-income and high-risk countries,” he said.
His final point addressed the need to invest further in advanced technologies like carbon capture and sustainable hydrocarbon solutions. He said such innovation would help maintain energy supply during the transition to net-zero while cutting emissions.
Al-Jadaan also stressed the deeper consequences of energy poverty, such as economic instability, forced migration, and mounting humanitarian pressures. He reiterated Saudi Arabia’s national targets, which include producing 50 percent of electricity from renewable sources by 2030 and reaching net-zero emissions by 2060, as part of the Kingdom’s Circular Carbon Economy strategy.
“In the Kingdom of Saudi Arabia, we are working with everyone to enhance energy security and eliminate energy poverty, while continuing efforts to combat climate change,” he added.
Also speaking at the forum, OPEC Fund President Abdulhamid Al-Khalifa warned of a widening global development divide. He referred to a “development emergency” described by the UN Secretary-General, pointing out that only 18 percent of the Sustainable Development Goals have shown measurable progress since they were adopted in 2015.
“Developing countries face a $4 trillion annual funding gap, worsened by rising debt servicing costs that are draining resources from essential services,” Al-Khalifa said.
To help address this, the OPEC Fund is intensifying its efforts, building on momentum from previous forums. Among its most recent initiatives is joining the “Mission 300” campaign to expand energy access.
The fund has also rolled out $1 billion through its food security action plan and committed an additional $2 billion to support food supply chains in partner nations. Furthermore, it has pledged $1 billion to help combat desertification as part of the Arab Coordination Group’s $10 billion Riyadh Global Drought Resilience Partnership.
Al-Khalifa used the forum to announce the OPEC Fund Trade Facility Initiative, a new programme designed to attract billions in financing by 2030. The initiative will help countries secure vital imports, close trade-related funding gaps, and improve resilience against economic shocks.
“This is a direct response to an urgent need, and a reflection of our commitments to stand by our partners when it matters most,” he said.
He noted growing pressures on global trade, citing challenges like disrupted supply chains, rising costs, and currency fluctuations that are having serious effects on vulnerable populations.
Looking back at the past year, Al-Khalifa said the OPEC Fund committed $2.3 billion to 70 projects worldwide in 2024, marking a 35 percent increase from the previous year. These initiatives have provided electricity to 300,000 households, built more than 500 kilometres of road infrastructure, and supported 75,000 farmers and 35,000 women.
As the Arab Coordination Group celebrates its 50th anniversary, Al-Khalifa acknowledged the value of collective efforts across member organisations. “We know from experience, when partners align their resources, expertise, and approaches, the results are transformative,” he said.
Both Al-Jadaan and Al-Khalifa highlighted that international collaboration and innovation are crucial to tackling the global development crisis and ensuring a more inclusive, sustainable future.
