[Click eStock] "Middle East Investing in Gas Again... Samsung E&A Remains Top Pick"

Saudi Arabia and UAE Shift Energy Strategies
Expanding Order Opportunities as a Leading EPC Player

It has been forecast that SAMSUNG E&A will expand its opportunities to win orders for energy facility projects in the Middle East by leveraging its competitiveness in the EPC (Engineering, Procurement, and Construction) market.

According to Kiwoom Securities on June 11, analyst Shin Daehyun maintained a "Buy" investment rating and a target price of 67,000 won for SAMSUNG E&A as of the previous day. The company also retained its position as the top pick in its sector. The closing price on the previous day was 47,300 won.

Recently, major countries in the Middle East have been diversifying their energy strategies. Shin noted, "Saudi Arabia announced in its 'Vision 2030' plan that it will replace oil-based power generation with natural gas and renewable energy sources." He added, "Industries such as manufacturing, mining, and data centers are all power-intensive, so demand for natural gas is inevitably set to increase significantly. Accordingly, large-scale orders for gas processing facilities and additional gas field development, mainly led by Aramco, are expected to continue."

The United Arab Emirates (UAE) is also transforming into a major Middle Eastern gas exporter, following Qatar. Shin explained, "Despite having ample natural gas reserves, the UAE currently imports it. However, investments in manufacturing, IT, software technology, and AI data centers will lead to an increase in power demand over the medium to long term." He pointed out, "In particular, after the UAE's withdrawal from OPEC, it appears that the country is not only seeking to expand crude oil production but is also interested in increasing natural gas exports."

He added, "Many capable companies have already disappeared from the Middle Eastern EPC market after fierce competition for low-priced orders during the 2010s. Based on the role that SAMSUNG E&A played in the expansion project for the Fadhili gas plant in Saudi Arabia, the company has a high probability of winning future large-scale gas field and processing facility projects."

This content was produced with the assistance of AI translation services.