The Saudi cabinet has approved sweeping economic reforms aimed at moving the country away from its dependence on oil profits.
Just over 70% of revenues came from oil last year but it has been hit by falling prices.
One part of the plan will see shares sold in state-owned oil giant Aramco to create a sovereign wealth fund.
Announcing the reforms, Deputy Crown Prince Mohammed bin Salman described his country as being addicted to oil.
The Vision 2030 plan, he told the Saudi-owned Al-Arabiya news channel, would ensure “we can live without oil by 2020”.
Among the reforms he announced in his interview were:
- Shares worth less than 5% of Aramco, a company he valued at up to $2.5tn (£1.7tn), will be sold
- Some of the proceeds will go towards a sovereign wealth fund worth $2tn
- A new visa system will allow expatriate Muslims and Arabs to work long term in Saudi Arabia
- Steps will be taken to diversify the economy, including investment in mineral mining and expanding military production
- Participation of women in the workforce to increase
Even just selling 1% of Aramco would create the biggest initial public offering in history, the prince said, outstripping blockbuster sales like Facebook and Alibaba.
The IMF called the Saudi plan an “ambitious, far-reaching effort” but warned implementation would be a challenge.
Leave a Reply