56 years on, KSA frees itself from oil addiction

More than 56 years after the establishment of the Ministry of Petroleum and Mineral Resources, when the Kingdom was attempting to organize investing its natural resources with a view to achieving economic progress and social prosperity, the name of the ministry has been changed to the Ministry of Energy, Industry and Mineral Resources.

The ministry, among some other ministries and government departments, has been restructured to leave behind the period during which the Kingdom and other Gulf countries were completely dependent on oil.

The ministry’s name change and restructuring was part of the Kingdom’s 2030 Vision, which was disclosed about two weeks ago.

The ministry will now be managing the largest alumnum complex in the world.

It will oversee the industry from the extrication of bauxite from underground to making it a finished aluminum product. It will also manufacture high-quality products, including automobile parts, packaging, construction and other feasible activities.

The ministry will move from the production of phosphate, sulfur and bauxite to the energy economies and training of Saudi youth to work in these projects.

It will provide the Saudi private sector with more opportunities to enter into supplementary industries as it will provide the world with large quantities of phosphate and bauxite from the north of the country.

The ministry will make the Kingdom among the top countries of the world producing and exporting fertilizers as well as aluminum.

The Kingdom’s oil reserves are estimated to be 267 billion barrels per day while its daily production is 9.5 million bpd.

As was the case in the past, the Kingdom’s immense ability to produce oil has helped in the stability of the oil market. In case of shortage in the oil supplies, the Kingdom will increase production to stabilize the market.

Saudi Arabia’s oil policy has always been moderate and balanced taking into consideration the interests of both the producers and the consumers.

Today, after 496,920 hours of production and refining, Saudi Arabia will be free from oil addiction. Oil will no longer make more than 50 percent of the Kingdom’s revenues. The other revenue sources will be the mind and muscles of the Saudi youth and their ability to innovate and accomplish within the 2030 Vision.

The non-oil revenues will go up from SR162 billion annually to SR1 trillion. The non-oil exports will therefore rise from 16 percent to about 65 percent.

The direct foreign investments (DFI) are also expected to boost the GDP.