Saudi Arabia could reportedly save more than $200 billion over the following decade by substituting the liquid fuel used mainly for domestic consumption with gas as well as renewable energy sources. As per the finance minister, as Saudi Arabia seeks to cut prices to fund investments.
The globe’s top oil exporter has entered into a new ambitious reforms programme lately to modernize its economy, lessen its dependence on oil revenues and create new jobs.
Mohammed al-Jadaan, Finance Minister of Saudi Arabia stated that this new programme will signify savings for the government of nearly 800bn riyals ($213.34 billion) within the next 10 years, which could be used for investment.
This month, the Kingdom also signed power purchase agreements with around seven novel solar projects, basically part of plans to enhance the energy mix utilized for production of electricity.
Jadaan added that instead of purchasing fuel from the global markets at around $60 and selling it at a price of $6 Saudi services, or using a few of its quota in OPEC to sell at $6, it is going to move approximately 1 million barrels a day of oil equal within the next 10 years, replacing it with renewables and gas.
Saudi Arabia has lately announced plans to speed up its domestic investment, in a multi-trillion-dollar expenditure push conducted by Aramco, one of the leading state oil giants as well as the kingdom’s very powerful $400 billion sovereign fund, PIF.
Jadaan continued that between 2021 and 2025, and perhaps until 2030, fiscal sustainability is of top priority. Until all the targets of Vision 2030 are achieved, the Kingdom needs to uphold fiscal sustainability, also controlling government spending.
Vision 2030 is the plan of Crown Prince Mohammed bin Salman to transform the kingdom by preventing the economy off oil and building brand new industries as well as start mega projects with the private sector to generate a number of new jobs.
Saudi Arabia is maintaining its unemployment target for 2030 and also aims to lessen the number of unemployment.