Abdulhadi H. Taher

Abdulhadi H. Taher
Born	1930
Died	2013
Nationality	Saudi Arabian
Alma mater	Haas School of Business (Ph.D, 1964)
Occupation(s)	Oil executive, author, and philanthropist
Known for	Director General of the Saudi Arabian Ministry of Petroleum and Minerals
Children	Tarek Taher

Abdulhadi H. Taher (1930 – 2013) was a Saudi Arabian oil executive and author. He was the Director General of the Saudi Arabian Ministry of Petroleum and Minerals Taher was described as "one of the most powerful figures" in Saudi Arabia.

Early life and education

Taher was born in Medina in 1930 to a family of limited means. He earned his PhD in Business Administration from what is now the Haas School of Business at the University of California, Berkeley in 1964. Taher died in 2013.

Initial Steps in the Oil industry

After completing his education in Cairo, Abdulhady Taher returned to Saudi Arabia, a country on the cusp of monumental changes in its economic landscape, particularly within the burgeoning oil sector. With the global demand for oil increasing and Saudi Arabia's vast reserves becoming more strategically important, the nation was beginning to recognize the need for strong domestic leadership in managing its most valuable resource. It was within this context that Taher began his career in the Directorate General of Petroleum and Mineral Affairs.

Starting as an assistant accountant, Taher quickly distinguished himself through his keen intellect and ability to handle the complex financial intricacies of the oil industry. His role involved managing and overseeing financial records, an essential function that required not only technical proficiency but also an understanding of the broader economic implications of oil production and sales. Taher's work in this capacity laid the foundation for his deep understanding of the industry’s financial operations.

The early 1960s were a transformative period for Saudi Arabia, as the government sought to assert more control over its natural resources and reduce the influence of foreign oil companies that had long dominated the sector. This was a time when the nation was beginning to transition from a largely traditional economy to one that was increasingly integrated into the global market, with oil as the driving force. Taher, recognizing the significance of these developments, was determined to enhance his expertise further.

Driven by a desire to contribute more effectively to his country’s economic future, Taher pursued advanced studies abroad. He enrolled at the University of California, Berkeley, one of the world’s leading institutions, where he immersed himself in the study of petroleum economics and finance. During his time at Berkeley, Taher focused on the specialized field of "Petroleum and Natural Gas Accounting," exploring how accounting practices could significantly impact the management and profitability of oil and gas resources. His doctoral research was particularly groundbreaking, as it addressed the unique challenges faced by oil-rich nations like Saudi Arabia in managing their natural wealth.

Taher’s Ph.D. dissertation, titled "Petroleum and Natural Gas Accounting and its Effects in Saudi Arabia," became a seminal work that provided invaluable insights into the economic management of oil resources. It offered a comprehensive analysis of how modern accounting techniques could be applied to the oil and gas industry in Saudi Arabia to improve transparency, efficiency, and profitability. His academic achievements, combined with his practical experience, positioned Taher as a knowledgeable and forward-thinking figure in Saudi Arabia’s oil sector, ready to take on more significant roles and responsibilities.

As Taher returned to Saudi Arabia with his newly acquired expertise, he was well-prepared to contribute to the nation’s strategic efforts to gain greater control over its oil resources. His ability to blend academic knowledge with practical experience made him a valuable asset in the Directorate General of Petroleum and Mineral Affairs, where he continued to rise through the ranks, eventually leading to his pivotal role in the establishment and growth of Petromin, Saudi Arabia’s first national oil company.

Rise to Prominence with Petromin

Abdulhady Taher’s career reached a pivotal turning point in 1962, a year that marked the beginning of his significant influence on Saudi Arabia’s oil and industrial sectors. During this transformative period in the Kingdom’s history, the Saudi government was keenly aware of the need to establish greater control over its natural resources, particularly oil, which was becoming increasingly vital to the nation’s economy and global standing. The leadership sought to reduce the country’s heavy reliance on foreign oil companies that had long dominated the exploration, extraction, and sale of Saudi oil. This was a strategic move not only to ensure greater national sovereignty but also to maximize the economic benefits that could be derived from the Kingdom’s vast petroleum reserves.

Amid this backdrop, Taher’s talents did not go unnoticed. Ahmad Zaki Yamani, a highly influential figure in Saudi Arabia and the then Minister of Petroleum and Mineral Affairs, recognized Taher’s exceptional abilities and potential. Yamani, known for his sophisticated diplomacy and strategic vision, was a trusted advisor to King Faisal and a key architect of Saudi Arabia’s modern oil policies. His recognition of Taher’s capabilities was a significant endorsement, given Yamani’s central role in shaping the Kingdom’s approach to oil and energy.

In 1962, Yamani made the strategic decision to appoint Taher as the governor of the newly established General Organization of Petroleum and Minerals, widely known as Petromin. This appointment was a major breakthrough for Taher, placing him at the helm of an organization that was not only new but also critical to the future of Saudi Arabia’s industrial and economic development. Petromin was established with a broad and ambitious mandate: to spearhead the Kingdom’s industrialization, manage its mineral resources, and crucially, to reduce the nation's dependency on foreign oil companies, particularly the American-owned Aramco, which at the time controlled much of Saudi Arabia’s oil production.

As the governor of Petromin, Taher was entrusted with a monumental task. He was responsible for transforming the organization from its nascent state into a driving force behind Saudi Arabia’s economic strategy. Under his leadership, Petromin was envisioned as a catalyst for the broader industrialization of the Kingdom, a role that required visionary planning, innovative thinking, and an ambitious agenda.

Taher approached his new role with a clear vision and a strategic mindset. He understood that for Petromin to succeed, it needed to become more than just an oil company—it had to be a leader in the Kingdom’s push towards economic modernization. Taher’s leadership style was characterized by his ability to think big and act decisively. He recognized the importance of diversifying Saudi Arabia’s industrial base, and under his direction, Petromin embarked on a series of large-scale projects that would lay the groundwork for the Kingdom’s future economic independence.

One of Taher’s primary goals was to develop a robust and diversified industrial base within Saudi Arabia. He initiated a range of projects that extended beyond the oil sector, including the development of petrochemical plants, oil refineries both within Saudi Arabia and abroad, and ventures into the production of glass, steel, and other industrial materials. These projects were not only ambitious in scope but also strategic in nature. By investing in these industries, Taher aimed to reduce the Kingdom’s reliance on imported goods and foreign expertise, thereby fostering a more self-sufficient and resilient economy.

Moreover, Taher was instrumental in launching Petromin’s oil shipping operations, an essential component of the organization’s ability to compete on the global stage. By establishing its own shipping capabilities, Petromin could ensure that Saudi oil products were delivered efficiently to international markets, further enhancing the Kingdom’s economic influence.

Throughout his tenure at Petromin, Taher demonstrated a deep commitment to the Kingdom’s long-term economic strategy. He understood that the success of Petromin would have far-reaching implications for Saudi Arabia’s position in the global economy. His leadership helped to position Petromin as a key player in the Kingdom’s economic development, and his efforts contributed to laying the foundation for Saudi Arabia’s emergence as a leading industrial nation.

Taher’s role in Petromin’s early years was critical in shaping the organization’s direction and success. His visionary leadership and ambitious agenda not only transformed Petromin into a cornerstone of Saudi Arabia’s economic strategy but also solidified his reputation as one of the most influential technocrats in the Kingdom’s history. His work at Petromin is a testament to his ability to lead complex organizations and drive significant industrial and economic transformation in a rapidly changing global landscape.

Challenges and Achievements

Throughout the late 1970s and early 1980s, Taher led Petromin in pursuing ambitious refinery and industrial projects. Despite facing challenges such as inefficiencies in expertise within the nation and market downturns, his leadership ensured that Petromin played a significant role in meeting Saudi Arabia’s growing energy needs.Petromin became an industrial behemoth with tens of thousands of employees. Although not all projects were completed, Taher’s efforts laid important groundwork for the Kingdom’s industrial base.

Further Career

Taher was described as "one of the most powerful figures" in Saudi Arabia. He spent his career working in both the public and private sectors. He served as the Director General of the Saudi Arabian Ministry of Petroleum and Minerals, the government-owned corporation that develops the Mideast nation's petroleum, petrochemical and mineral industries. He was also the founder of the Al-Taher Group, a collection of companies that focus on construction, engineering, trading and real estate ventures in Saudi Arabia. The Al-Taher Group employs a workforce of more than 2500 employees based throughout the Arab region. Taher served as a board member of Saudi Aramco and as the governor and founding director general of the Petromin Corporation.

Taher was a major shareholder in Gulf Oil the multinational oil company, alongside the Hinduja group.

Taher lectured at the business school at King Saud University in Riyadh.

Taher was a Knight of Thailand. He was ennobled by King Bhumibol Adulyadej in 1980.

Legacy and Impact

Abdulhady Taher’s career reflects the broader narrative of Saudi Arabia’s economic development in the 20th century. His work at Petromin was instrumental in the Kingdom’s initial efforts to industrialize and diversify its economy. His contributions continue to resonate, underscoring his role as a key figure in Saudi Arabia’s modern history.

Published works

Abdulhady Taher, was also a respected author and intellectual. His extensive experience in the fields of petroleum economics and industrial management, combined with his academic background, provided him with a unique perspective that he shared through a number of published works. These writings reflect his deep understanding of the complexities of the oil industry, his insights into the economic challenges facing oil-producing nations, and his vision for the role that strategic management and transparent governance can play in fostering sustainable development.

Taher's journey into the realm of authorship began during his academic career, particularly during his time at the University of California, Berkeley, where he earned his Ph.D. in petroleum economics. His doctoral thesis, titled "Petroleum and Natural Gas Accounting and its Effects in Saudi Arabia," is a seminal work that laid the foundation for much of his later writing. This thesis was pioneering in its examination of how modern accounting principles could be applied to the management of oil and gas resources, particularly within the context of Saudi Arabia. The work addressed the specific financial challenges faced by oil-rich nations and proposed methods to improve transparency, efficiency, and profitability in the sector. Taher’s focus on the economic impacts of accounting practices in the oil industry demonstrated his forward-thinking approach to resource management, emphasizing the need for robust financial controls in maximizing the benefits of natural resource wealth.

Building on the success of his doctoral research, Taher continued to explore various facets of the oil industry in his subsequent writings. His works often delved into the economic dimensions of petroleum production and the broader implications for national development. He was particularly interested in how oil revenues could be managed to support long-term economic growth and development in Saudi Arabia and other oil-producing countries.

Taher authored several articles and papers that were well-regarded in both academic and professional circles. These publications often addressed the intersection of oil economics, industrial policy, and national development strategies. He was a strong advocate for the idea that the wealth generated from oil should be used not just for immediate economic gain but also for laying the groundwork for future prosperity. This meant investing in infrastructure, education, and other critical areas that would ensure the sustainable development of the nation long after the oil reserves had been depleted.

One of the recurring themes in Taher’s writings was the importance of strategic management in the oil sector. He argued that oil companies, particularly national oil companies (NOCs) like Petromin, needed to be managed with a focus on long-term goals rather than short-term profits. This perspective was informed by his own experiences in leading Petromin, where he saw firsthand the challenges of balancing the need for immediate revenue generation with the imperative of investing in the future.

Taher’s writings were not only influential in academic circles but also had a significant impact on policy-making both within Saudi Arabia and internationally. His insights into the management of oil revenues and the economic role of NOCs were widely respected, and his work often served as a reference for policymakers looking to reform or improve their own management of natural resources.

In Saudi Arabia, Taher’s ideas helped to shape discussions around the role of the oil sector in the national economy. His emphasis on transparency, efficiency, and strategic planning resonated with leaders who were seeking to modernize the Kingdom’s economic policies and ensure that oil wealth was used to benefit all Saudis. His advocacy for better governance in the oil sector also contributed to broader discussions about economic reform in the Kingdom, particularly as it related to reducing dependency on oil and diversifying the economy.

Internationally, Taher’s works were cited in discussions about the governance of natural resources and the role of NOCs in economic development. His views on the need for sound financial management and strategic planning in the oil industry were seen as particularly relevant to other oil-rich nations that were grappling with similar challenges. Taher’s writings offered a model for how these countries could use their oil wealth to support sustainable development and avoid the pitfalls of mismanagement and corruption.

As Taher’s career progressed, his writings continued to evolve, reflecting the changing dynamics of the global oil industry and the shifting priorities of Saudi Arabia’s economic development. In his later works, Taher increasingly focused on the challenges of globalization and the need for Saudi Arabia to integrate more fully into the global economy. He wrote about the importance of adopting international best practices in the management of the oil sector and the need for Saudi companies to compete on a global stage.

Taher’s later writings also touched on the social and environmental responsibilities of oil companies. He recognized that the oil industry had a significant impact on the environment and that companies had a responsibility to mitigate these impacts through sustainable practices. His writings in this area were ahead of their time, anticipating many of the debates about corporate social responsibility and environmental stewardship that have become central to discussions about the oil industry today.

Throughout his life, Abdulhady Taher’s writings remained deeply connected to his professional experiences and his commitment to the development of Saudi Arabia. His works are a reflection of his belief that the oil sector could and should be a force for good, driving not only economic growth but also social progress and environmental sustainability.

Today, his published works continue to be referenced by scholars, policymakers, and business leaders who are looking for insights into the effective management of natural resources. Taher’s legacy as an author is one of profound influence, not just in Saudi Arabia but across the oil-producing world, where his ideas have helped to shape the way that nations think about and manage their most valuable resources.

His publications, many of which are still studied in academic and policy-making institutions, offer a rich resource for those interested in the intersection of economics, industry, and national development. They stand as a testament to his intellectual rigor, his strategic vision, and his unwavering commitment to the responsible stewardship of Saudi Arabia’s natural wealth..

Monographs

• (2013). Energy, A Global Outlook: The Case for Effective International Co-operation. Oxford: Pergamon Press.
• (2011). Petroleum, Gas and Development Strategies of Saudi Arabia: Income Determination in the International Petroleum Industry. London: Saqi Books.
• (2008). Income Determination in the International Petroleum Industry. London: Saqi Books.

Co-authored monographs

• (2013). Co-authored with Michael Matthews. Saudi Arabian Hydrocarbons and World Affairs. London: Saqi Books.