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Saudi Arabia Details 'Vision 2030' To End The Country's 'Addiction To Oil'

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Saudi Arabia Details 'Vision 2030' To End The Country's 'Addiction To Oil'
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Saudi Arabia's reliance on the oil industry may come to an end, thanks to a new project dubbed "Vision 2030."

Saudi Arabia's Deputy Crown Prince Mohammed bin Salman is being tasked with diversifying the country's economy and ridding its "addiction to oil." As part of the plan, the country will operate "without any dependence on oil" by 2020 and become a "global player."

According to The Washington Post, the oil industry accounted for around 90 percent of the government's income in recent years. However, the recent plunge in oil prices from over $100 a barrel in 2014 to the current $40 per barrel level has resulted in a $98 billion deficit last year.

Related Link: What's Goldman Saying About Oil Majors And Refiners?

The Washington Post added that the Vision 2030 plan has been approved by the country's cabinet and the top priority of the plan consists of the sale of a small stake of less than 5 percent in the state-owned Saudi Aramco.

Saudi Aramco could be valued at up to $2.5 trillion, according to Saudi officials. The proceeds from a share offering would be used to jump-start a $2 trillion sovereign wealth fund.

Other initiatives of the Vision 2030 include a revised "green card" program, increasing female participation in the workforce, building a domestic arms industry and investing in tourism related projects.

Posted-In: oil prices Saudi Arabia Saudi Arabia Economy Saudi Arabia Vision 2030News Commodities Global Markets Best of Benzinga

 

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