Despite the storms of the oil market … How did Saudi...

Between the year 2014, when the price of a barrel of oil ranged in the first half between 100 and 110 dollars, and the year 2020, during which the price of American crude fell during the month of April to less than zero dollars a barrel, in what was described as a historical collapse, the oil market witnessed many fluctuations, and many Among the declines in prices, which have affected the revenues of countries that depend on oil for their national income, among them Saudi Arabia, Russia and Venezuela, but the Kingdom of which oil exports were the largest source of income for it in that period, when oil prices began to decline and fluctuate It was able to avoid its economy from the scourge of oil price shocks by applying “Vision 2030”, which caused a qualitative shift in diversifying sources of income and injected new resources into the budget.

Through “Vision 2030” announced by Crown Prince Mohammed bin Salman on April 25, 2016, the Kingdom has succeeded in overcoming a number of crises caused by the drop in oil prices during the past four years, especially with the worsening economic effects resulting from the spread of the new Corona virus. In the world, and caused the closure of countries’ economies, which led to the collapse of oil prices to unprecedented levels. How did Saudi Arabia achieve the difficult equation in preserving its national income? This important question was answered by a Japanese study prepared by the Japanese Institute for International Monetary Affairs, titled “Saudi Finance Moves Toward No Dependence on Oil.”

The study showed that after the announcement of “Vision 2030”, Saudi Arabia’s non-oil revenues increased by 78.7 percent, from 186 billion Saudi riyals to reach 332.4 billion Saudi riyals, as the average annual increase during this period in particular was 22 percent, and the study concluded that If Saudi Arabia continues to maintain this same pace, it will achieve its goal of increasing its non-oil revenues by one trillion Saudi riyals by 2030, and as it can be noted, the study data shows several important indicators: that the Saudi economy is no longer mainly dependent on oil, and that revenues are not Oil has become a basic resource in the budget, and that oil revenues are in a state of continuous growth, and in the case of maintaining their current pace, they will generate one trillion riyals in 2030.

The study prepared by a group of researchers from the institute, including: the institute’s president, vice president, head of the economic research department, and head of the development economic research department, returns the credit for Saudi Arabia’s overcoming crises of falling oil prices to Vision 2030 matches the truth regarding identifying the variables that caused this economic transformation in Saudi Arabia, as he indicates the value of the achievement also achieved by “Vision 2030”, in a short period not exceeding months, at a time in which Saudi Arabia has for decades continued to rely on oil as a major source of income, with the conclusion that the vision was based on a completely correct thought in evaluating the components. The Kingdom’s diversified economic and natural environment, as well as an honest outlook for the future, resulted in the Kingdom sparing severe crises that would weaken its economy and affect its citizens.