[Edaily Reporter Lee Hye-ra] On the 10th, Kiwoom Securities projected that #SamsungE&A would see expanded order opportunities due to changes in the energy strategies of Saudi Arabia and the United Arab Emirates (UAE). The firm maintained its target price of 67,000 won and its rating of "Top Pick" within the sector.

Shin Dae-hyun, an analyst at Kiwoom Securities, stated in a report released that day, “Medium- to long-term growth in gas demand is expected, particularly in Saudi Arabia and the UAE,” adding, “As orders for gas field development and gas processing facilities are expected to increase, Samsung E&A is likely to benefit significantly.”
The analysis suggests that while the chemical division’s revenue is currently supported by its existing project pipeline and Middle East reconstruction projects, an increase in gas plant orders will serve as a new growth driver in the future. Shin Hyun-gu predicted, "Samsung E&A is playing a key role in the Saudi Fadhili gas plant expansion project," adding, "It is expected to secure a competitive advantage when large-scale gas projects are awarded in the future."
In line with its "Vision 2030" policy, Saudi Arabia is transitioning its power generation fuel sources from crude oil to natural gas and renewable energy. At the same time, the country is actively promoting energy-intensive industries such as manufacturing, mining, and data centers, leading to an expected sustained increase in natural gas demand.
Researcher Shin explained, “Saudi Arabia is pursuing a strategy to replace domestic power generation fuels with natural gas in order to expand crude oil exports,” adding, “It is highly likely that orders for large-scale gas processing facilities and the development of new gas fields will follow.”
The UAE was also identified as a new growth market. Researcher Shin noted, “Despite its abundant natural gas reserves, the UAE currently imports gas,” adding, “We expect the country to expand gas production to support the growth of its manufacturing, IT, and healthcare industries and to meet rising electricity demand.”
He further analyzed, “In addition to increased LNG demand following the Russia-Ukraine war, concerns over disruptions to Qatar’s LNG supply are growing due to recent instability in the Middle East,” adding, “If the UAE moves to expand LNG production, this could lead to investments in large-scale gas field development, gas processing facilities, and LNG export terminals.”
Researcher Shin noted, “The Middle East EPC market has seen a significant reduction in the number of competitive firms following past low-price bidding wars,” adding, “Samsung E&A, which is currently executing the Fadhili gas plant expansion project, is playing a leading role and is highly likely to secure new contract opportunities.”