Monitoring Desk
DAVOS: Saudi Arabia’s Economy Minister Faisal Al-Ibrahim on Wednesday said that the Kingdom is working to reduce its reliance on oil exports, as the Middle East powerhouse sent the largest delegation to the Davos summit to pursue its case.
Although the Kingdom is pursuing its goal of achieving net zero carbon emissions by the year 2060, Saudi Arabia remains hugely dependent on exports of crude oil that have powered its growth for decades. This has raised doubts about the country’s potential for an economic makeover in the near future.
“We want to reduce our dependence on oil. We are working to diversify our economy; it is essential, it is important, ” Al-Ibrahim told AFP news agency at the World Economic Forum (WEF) in Davos.
Saudi has sent eight top-ranking officials to the summit of the business elite as it seeks more partners and foreign investment outside the all-important oil sector.
Saudi Arabia’s reliance on oil exports
Surging crude prices following Russia’s invasion of Ukraine allowed Saudi Arabia to post 2022 its first budget surplus in nine years. This has given the country the financial firepower for economic development.
“It is never too late for sectors starting from scratch in Saudi Arabia. Tourism, culture, sports, and entertainment will bring a wealth of diversification,” the minister said.
“But we also care about other sectors, including industry and mining, for it to be even more competitive.”
Saudi Arabia hopes to build on the momentum from the recent high-profile visit by Chinese President Xi Jinping to Riyadh, where agreements worth billions of dollars were signed in the fields of energy and infrastructure, beside others.
“It is not advertising or showcasing; people are very interested in Saudi Arabia’s growth story,” the minister said. He noted the Kingdom’s 8.5 percent expansion in Gross Domestic Product (GDP) last year even as much of the world economy struggled.
On the heels of the FIFA World Cup in Qatar, the Kingdom could be a candidate to host the mega event in 2030; it recently hired the Portuguese star Cristiano Ronaldo for promoting the potential bid.
At Davos on Tuesday, Saudi Arabia’s officials announced a joint venture with the Davos forum organizers to accelerate the adoption of high-tech innovation in the Kingdom via the virtual reality of the metaverse.
“We have opened up much more than ever before, and that lets people see,” the minister said.
“They see the values, they see the culture, they see the progress, and they see how we are tackling a lot of issues and challenges regionally and globally.” – AFP/APP
