• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 5 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 1 hour OPEC will consider all options. What options do they have ?
  • 10 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 2 hours What to tell my students
  • 1 hour Recession Jitters Are Rising. Is There Reason To Worry?
  • 1 hour CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 14 hours With Global Warming Greenland is Prime Real Estate
  • 6 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 2 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 56 mins Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 24 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 21 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 17 hours Get First Access To The Oilprice App!
Lincoln Brown

Lincoln Brown

Lincoln Brown is the former News and Program Director for KVEL radio in Vernal, Utah. He hosted “The Lincoln Brown Show” and was penned a…

More Info

Premium Content

Saudi Cabinet Green Lights $141B Oil Diversification Plan

Late Monday, the Saudi Arabian cabinet gave its approval to the National Transformation Program, a plan aimed at diversifying the kingdom’s economy and steering it away from oil.

The plan which is aimed at boosting the country’s non-oil revenue to US$141 billion, by the year 2020, was proposed in April by Deputy Crown Prince Mohammed bin Salman. The prince said his hope was that in 20 years the country would no longer be oil-dependent.

Saudi Arabia will maintain its output of 12.5 million barrels per day until 2020.

The kingdom is dependent on oil for 80 percent of its revenue and has felt the sting that has come with falling oil prices. A 70-percent dip in prices from 2014-2016 resulted in a US$98 billion budget deficit for the kingdom last year. Related: Does Iran Have The Upper Hand In OPEC Oil War

In response to this situation, the Saudi government has issued domestic bonds, cut spending and raised the domestic cost of fuel, water and electricity.

Last month, the International Monetary Fund (IMF) predicted slow growth for the country this year, due to the effects of cheap oil.

While the country still has nearly $600 billion in foreign-exchange reserves, it has burned through US$140 billion in reserves since the end of 2014. The IMF has warned the Saudis that they could eventually run out of cash. In April, the kingdom raised US$10 billion via a loan from local banks, and in 2014 it tapped the local bond market for at least $4 billion. However, this marks the first time Saudi Arabia has issued international bonds which could total between US$10 and US$15 billion. Related: U.S. Crude Exports Hit 96 Year High

Part of the divestment plan would involve the sale of less than 5% of state-owned Saudi Arabian Oil company, and the transfer of the company’s ownership to the sovereign-wealth fund.

According to the Wall Street Journal, Saudi Arabia also plans to develop its mining and tourism industries, adding approximately 450,000 private sector jobs.

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play