Jakarta, CNBC Indonesia – Saudi Arabia is reportedly reducing its dependence on oil exports. This news was conveyed by Minister of Economy Faisal Al-Ibrahim during the World Economic Forum in Davos, Switzerland on Wednesday (18/1/2023).
“We want to reduce our dependence on oil… We want to diversify our economy, this is important, this is important,” Al-Ibrahim told AFP.
Riyadh itself has sent eight top officials to a meeting of business elites as it seeks more foreign investment and partners outside the oil sector.
“It’s never too late for a sector to start from scratch in Saudi Arabia. Tourism, culture, sports and entertainment, they will bring a wealth of diversification,” said Al-Ibrahim.
“But we also care about other sectors such as mining and industry to make them more competitive,” he added.
Despite its goal of achieving net zero carbon emissions by 2060, the country remains heavily dependent on crude oil exports, casting doubts about the potential for transforming its economy in the near future.
Soaring crude prices after Russia’s invasion of Ukraine allowed the kingdom to post its first budget surplus in 2022 in nine years, giving it the financial clout for economic development.
Saudi Arabia is hoping to build on momentum from Chinese President Xi Jinping’s high-profile visit to Riyadh last month, during which multibillion-dollar deals were signed in areas including energy and infrastructure.
“This is not advertising or showing off, people are very interested in the Saudi growth story,” said the minister, noting the kingdom’s 8.5% expansion in GDP last year even as the global economy is struggling.
Meanwhile Saudi officials announced a joint initiative with the organizers of the Davos forum to accelerate high-tech innovation in the kingdom through virtual reality metaverse.
Crown Prince Mohammed bin Salman himself has pushed to open up the country and enact economic and social reforms.
“We have opened up more than before and it is allowing people to see,” said Al-Ibrahim. “They see the culture, they see the values, they see the progress and they see that we are addressing many challenges and issues regionally and globally.”
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