Saudi Arabia reduces large investments in the oil industry
report Mehr News Agency quoted by Bloomberg, Goldman Sachs bank predicted in a report that Saudi Arabia will invest less in the oil industry by the end of the current decade than initially predicted. This country planned to invest one trillion dollars in strategic industries by the end of this decade.
According to this report, Saudi Arabia may allocate most of its capital, about 73% of all investments, to non-oil sectors by 2030.
By increasing the allocation of investments to the non-oil sector, only a quarter of the budget remains for the oil sectors; Because this country focuses on industries such as metals and minerals, transportation and logistics, and digitization to enable diversification.
Based on the economic transformation plan of Mohammed bin Salman, Crown Prince of Saudi Arabia, named “Vision 2030”, this country will open its economy to new industries and in sectors New investments and changes the business image of Saudi Arabia. Reducing dependence on the sale of crude oil is a major goal of this vision.
Faisal Azmeh, Head of Equity Research in the Europe, Middle East and Africa region at Goldman Sachs Bank, announced in a report that although it is likely that investment in the oil industry will continue from now until In 2028, it will decrease by 40 billion dollars, but natural gas is still one of the important sectors in the decarbonization, economic development and diversification programs of this country.
Given that the price of Brent crude oil in the North Sea is currently around 80 dollars per barrel and Saudi oil production has decreased to around 9 million barrels per day. This country is facing the increasing risk of increasing the budget deficit.
The budget deficit of Saudi Arabia reached 15 billion 300 million Rials (equivalent to 5 billion 300 million dollars) in the second quarter of this year, which shows that the government of this country is still It depends on oil revenues.
However, according to research by Goldman Sachs, financing for new industries is increasing as investment in renewable energy increases. Investment in the clean energy sector is expected to reach 235 billion dollars, which has increased compared to the previous estimate of 148 billion dollars.
