Saudi Arabia reduce spending on oil sector by $ 40 billion

By Alimat Aliyeva

The Saudi authorities intend to reduce spending on the oil sector of the economy by $ 40 billion by 2028, focusing on the development of renewable energy and mining, Azernews reports.

According to the American banking group Goldman Sachs Group, Riyadh plans to redirect about 73% of investments to sectors of the economy not related to oil production by 2030. As a result, only a quarter of the remaining funds allocated by the authorities for the development of strategic industries by the end of this decade will be invested in the oil industry. Thus, the kingdom intends to diversify its economy, giving priority to the development of metallurgy, transport and logistics, as well as digitalization. At the same time, according to Goldman Sachs analyst Faisal al-Azme, natural gas "will continue to serve as a key factor in the country's plans to reduce carbon dioxide emissions and in its economic development."

In March, the Ministry of Economy and Planning of Saudi Arabia reported that the size of the non-oil sector of the country's economy reached 50% in 2023, which is the highest figure in the history of the kingdom. According to the ministry, in real terms, the contribution of the non-oil sector amounted to 1.7 trillion Saudi riyals (about 453.3 billion dollars).