Can Saudi Arabia Really Break Its Dependence On Oil?

[cabatli_53]

In 2015, oil contributed only 27.17% of the Saudi economy
At its highest level before that it was 49% of the Saudi economy

International Monetary Fund: Saudi Arabia the sixth globally in economic growth in 2020

Lying is your official regime tradition in all incidents ?

 

[The SC]

Lying is your official regime tradition in all incidents ?

That is talking about the whole petroleum sector, including petrochemical products.. get you facts right..

"The petroleum sector accounts for roughly 87% of budget revenues, 42% of GDP, and 90% of export earnings."

"Over 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors.."

Data is from 2017
https://www.indexmundi.com/saudi_arabia/economy_profile.html


"The oil and gas sector accounts for about 50 per cent of gross domestic product, and about 70 per cent of export earnings. Apart from petroleum, the Kingdom’s other natural resources include natural gas, iron ore, gold, and copper."

https://www.opec.org/opec_web/en/about_us/169.htm
Saudi Arabia do not lie..ever.. It wonders who lies all the time!

 

[The SC]

https://defence.pk/pdf/threads/saud...e-thanked-for-its-oil-policies-report.598871/

 

[HAIDER]

KSA could do it 30 years ago, when there population was very low. This is issue of Muslim world, they didn't started any long term program to control the future bust of population. Now, everyone is facing unemployment crisis.

 

[cabatli_53]

The petroleum sector accounts for roughly 87% of budget revenues, 42% of GDP, and 90% of export earnings."

Thanks to prove me. Petrol and petro-chemical industry to be feeded by petrol is the reason of your economical dependency and If you want to talk about braking dependency on petrol, you should convert the %80+ revenue source of your economy under your diversification policy. When petrol source ends, Neither petrol, nor petro-chemical industry incomes will be able to provide sufficient income while living on your desert sands.

 

[The SC]

Thanks to prove me. Petrol and petro-chemical industry to be feeded by petrol is the reason of your economical dependency and If you want to talk about braking dependency on petrol, you should convert the %80+ revenue source of your economy under your diversification policy. When petrol source ends, Neither petrol, nor petro-chemical industry incomes will be able to provide sufficient income while living on your desert sands.

Don't worry much..Oil still have a long way to go.. and petrochemicals even much more.. next you will know is most of Saudi exports from Oil will be petrochemicals, and a small part as crude.. and do not forget Gas with Saudi Arabia holding the 6th proven reserves of the world.. and it has just started to explore it..This goes for oil and derivatives and Gas only.. the effort is now concentrated on big time industrialisation of the country, small and medium businesses and Non-Oil revenues which are getting higher by the day..And it is just a start!
The 77% talk about Oil not its derivative in petrochemicals.. and not the GDP either..
From that desert sand came out the biggest and most advanced civilisation of its times that the world has ever witnessed..


Saudi non-oil exports rise 26.7pc in June

September 2, 2018

Saudi Arabia's non-oil exports rose for the 9th month in a row, up by 26.7 per cent year-on-year in June 2018 (+14.3 per cent y-o-y in May 2018), whereas the non-oil imports dropped 3.2 per cent y-o-y in June (-6.4% y-o-y in May 2018), said a report.

Meanwhile, the Index of Industrial Production (IIP) climbed 0.6 per cent quarter-on-quarter in Q1 2018, supported by the rise in ‘Manufacturing Industry’ sector (constituting ~23 per cent of the total index). However, the remaining sectors ‘Mining and Quarrying’ and ‘Electricity Supply’ witnessed a drop, said the Al-Rajhi Capital research report, quoting from a Saudi Monetary Agency (Sama) report.

Saudi Arabia's oil revenue is expected to reach SR605 billion ($161.36 billion) against budgeted SR492 billion this year as the kingdom witnesses a continuous improvement in the economy, the Al-Rajhi Capital report said.

With budgeted non-oil revenue of SR291 billion, the fiscal deficit is expected to be SR82 billion for 2018 (~58% lower than government budget deficit estimate of SR194.7 billion), it said.

"We continue to believe that steady oil prices and higher oil output coupled with better non-oil growth will aid the kingdom’s economic recovery this year," the report said.

Quoting from Saudi Monetary Agency's (Sama) data, it said credit to the private sector climbed for the fourth consecutive month (+0.7% y-o-y; +0.2% m-o-m) in July, while bank claims to the public sector also witnessed a rise (+24.2% y-o-y; +0.9% m-o-m).

Further, consumer spending continued to improve with POS transactions (+25.3% y-o-y; -0.6% m-o-m in July) and ATM withdrawals (+12.7% y-o-y; +2.4% m-o-m) witnessing a steady rise on annual basis.

Meanwhile, the Sama foreign reserves have recorded the highest annual growth in over three-and-half years (+1.4% y-o-y; -1.0% m-o-m) in July, as higher oil revenue and recent debt issuances have curbed the government’s need to tap its reserves to plug the fiscal deficit.

Saudi Arabia’s H1 2018 fiscal deficit narrowed to SR41.7 billion compared to SR72.7bn in H1 2017. For 1H 2018, revenue jumped ~43% y-o-y to SR439.9 billion, supported by a sharp increase in both oil (+40% y-o-y) and non-oil revenues (+49% y-o-y). Meanwhile, expenditure grew by 26.5% y-o-y to SR481.5 billion.

Meanwhile, government reserves with Sama stood at SR597.8 billion (including government current account) as of July 2018, recording a monthly fall of 2.0%.

Credit to the private sector rose 0.7% y-o-y (+0.2% m-o-m) in July, while, bank claims on public sector increased 24.2% y-o-y (+0.9% m-o-m) in the same month. Meanwhile, deposits slipped 1.5% y-o-y (-0.6% m-o-m) in July.

Crude oil prices (Brent October futures contract) gained 4.4% m-o-m in August 2018, backed by the fall in US crude oil inventories. Further, reports suggesting a drop in Iranian output also aided oil prices. Meanwhile, crude oil production increased 2.2% m-o-m, to 10.7 mbpd in July 2018, compared to the rise of 4.5% m-o-m in June. - TradeArabia News Service

http://www.tradearabia.com/news/IND_344644.html

There is a big difference between the government revenues and the Saudi economy in general.. read again.. my post #28 points out to the oil contribution to Saudi economy as a whole and your unrelated response about the government revenue..

Saudi Arabia's non-oil revenue jumps 63% to $14bn

Saudi Arabia’s non-oil revenue climbed 63 percent in the first quarter of 2018, propelled by improved tax collection as part of a drive to reduce the economy’s reliance on income from oil exports.
Revenue rose to 52.3 billion riyals ($14 billion), partly due to the introduction of value-added taxation and measures taken over the past two years, including a levy on expatriates working in the world’s biggest oil exporter, the Finance Ministry said on Monday.

https://www.arabianbusiness.com/pol...audi-arabias-non-oil-revenue-jumps-63-to-14bn

 

[nahtanbob]

the 64 trillion dollar question is when will oil consumers break their dependence on hydrocarbons

 

[The SC]

the 64 trillion dollar question is when will oil consumers break their dependence on hydrocarbons

https://defence.pk/pdf/threads/saud...e-thanked-for-its-oil-policies-report.598871/

 

[nahtanbob]

https://defence.pk/pdf/threads/saud...e-thanked-for-its-oil-policies-report.598871/

Saudis deserve kudos for managing the stable supply of oil

 

[Oublious]

They are eating ther reserves for now, when the money is finished they will produce more. Lack on industry en science, solving in 3 years? Ther is not much income for KSA then oil, desperate to make something is going to end with fiasco. Looks like they don't have the money and are asking for countries to invest, most of the countries will not invest.

https://defence.pk/pdf/threads/saudi-arabia-unveils-427-billion-plan-to-reform-economy.599076/


A industry don't work like this, but fak it in the end nobody will invest that money only a fool.

 

[MMM-E]

in 15-20 years Electric cars will dominate whole world ,,,, Oil and Saudi Arabia will suck


Thorium is future fuel that promises to produce safer, cleaner and more efficient nuclear power

Turkey has about 344.000 tons of thorium reserves
and only 20.000 tons of thorium reserves can provide Turkey's 100 year electric energy

FUTURE IS OURS


India has 519,000 tons or around 25% of the world reserves
Australia has 489,000 tons or 19% of the world reserves
The US has about 400.000 tons or 13% of the world reserves
Turkey has about 344,000 tons or 11% of the world reserves
Venezuela and Brazil are two countries estimated each having 300,000 tons representing a total of 20% of the world reserves