Saudi Arabia has set a strategic goal to significantly reduce its financial commitment to the oil sector, planning a $40 billion cut by the year 2028. The nation’s focus is shifting towards the expansion of renewable energy and mining sectors.
Information from Goldman Sachs Group indicates that Riyadh is gearing up to channel approximately 73% of its investments into non-oil sectors by 2030. Consequently, the oil industry will only receive about a quarter of the total funds earmarked for strategic industry development as the decade closes. This move underlines Saudi Arabia’s intention to diversify its economy, placing emphasis on sectors like metallurgy, transportation, logistics, and digital advancements.
An analyst from Goldman Sachs, Faisal al-Azme, notes that natural gas is expected to remain a pivotal element in Saudi Arabia’s strategy, not only for its economic growth but also for its agenda to curtail carbon dioxide emissions.
March reports from the Saudi Ministry of Economy and Planning revealed that the non-oil sector’s contribution to the economy reached an unprecedented 50% in 2023. In monetary terms, this sector’s real contribution stood at 1.7 trillion Saudi riyals, which is roughly equivalent to $453.3 billion.