Saudi Arabia to move away from oil profits
Saudi Arabia unveiled plans to free the kingdom from its dependence on oil revenues. On monday Saudi cabinet has approved sweeping economic reforms aimed at moving the country away from its dependence on oil.
Prince Mohammed on Monday presented a broad overview of what has been billed as the country’s most extensive economic shake-up in decades. The project “Saudi Vision 2030”, includes plans to sell less than 5% of state-owned oil giant Saudi Arabian Oil Co., and transfer ownership of the company to Saudi Arabia’s sovereign-wealth fund, the Public Investment Fund, so it can build a war chest for non-oil investments abroad.
The country will also implement reforms aimed at boosting revenue from non-oil sources, such as tourism and mining.
However Oil has made Saudi Arabia a major economic force. But it comes at a cost. The short-term problem is the volatile price of crude oil, which is now less than half what it was in mid-2014. Saudi Arabia has deep pockets.
The plan would ensure that Saudi can survive without oil by 2020 says Deputy Crown Prince Mohammed bin Salman.
Analysts said it could take Saudi Arabia many years to implement such far-reaching changes and fundamentally transform the economy.
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