It was not as the same a year ago, slashing government revenues by 22% and putting major projects on hold. The International Monetary Fund has urged the Saudi government to spend less and use its money better for a time when oil runs out. Technological advances in renewable energy and electric cars, accelerated by the threat of climate change. This can bring a change in Saudi's production and economic stages.
Why Saudi? Why renewable energy? What change in economic?
A Glance in Tranquility wins...!
Saudi Arabia
Ban on women driving formally lifted, Public cinema returns, A lady news reporter read news in Saudi news. These are very common in other countries but new to Saudi. In 1932 September Ibn Saud unites his lands as the Kingdom of Saudi Arabia. In 1938 Oil is discovered and production begins under the US-controlled Aramco (Arabian American Oil Company). 1960 Saudi Arabia is a founding member of OPEC (Organisation of Petroleum Exporting Countries). 1987 Saudi Arabia resumes diplomatic relations with Egypt. 1990 Saudi Arabia condemns Iraq's invasion of Kuwait and asks the US to intervene. In 1991 Saudi Arabia is involved in both air attacks on Iraq and the land force that went on to liberate Kuwait.
Then King Salman ascends throne after King Abdullah dies. Government approves a plan for far-reaching reforms to diversify the economy away from oil. Then In 2017 Saudi Arabia sparks a diplomatic crisis by leading an air, land and sea blockade by Arab countries, in an attempt to get Qatar to cut its alleged connections with terrorism and distance itself from Iran. King Salman names his son Mohammed bin Salman first in line to the throne. But on other side cruel and unusual punishments of Saudi stand peak in global news.
The Black Gold
Saudi Arabia has traditionally been regarded as the world’s most important swing producer of oil. When acting as such, the Saudi government would increase or decrease oil production to maintain a more stable price. Began producing commercial quantities of crude oil in 1938. Since then it have built a reputation for unmatched reliability in supplying crude oil to energy markets around the world. The petroleum sector accounts for roughly 87% of Saudi budget revenues. The government has encouraged private sector growth for many years to lessen the kingdom's dependence on oil, and to increase employment opportunities for the swelling Saudi population.
The Two
The decades old feud between them is exacerbated by religious differences. They each follow one of the two main branches of Islam were Iran is largely Shia Muslim, while Saudi Arabia sees itself as the leading Sunni Muslim power. This religious schism is reflected in the wider map of the Middle East, where other countries have Shia or Sunni majorities, some of whom look towards Iran or Saudi Arabia for support or guidance. Saudi Arabia has been emboldened by support from the Trump administration while Israel, which sees Iran as a mortal threat, is in a sense "backing" the Saudi effort to contain Iran. That which compete the economic and military growth of both in means of power and also in oil wealth.
But The Real Threat
The real threat is depend upon their oil wealth and economic growth were Oil is the main pillar of Saudi Arabia’s economy and the cornerstone of its development. Oil receipts accounted for around 85% of exports and almost 90% of fiscal revenue, while the oil sector comprises over 40% of overall GDP. Saudi Arabia is the largest economy in the region excluding Turkey and its economy represents around a quarter of the combined GDP of the Middle East and North Africa. So the dependency of oil is very high in Saudi economic stand.
Electrical Drawbacks
Technology develops the usage of the electricity due to its nature on Eco friendly. It also touch the usage of petroleum in cars and industries, were companies started making electrical cars to commercialize it, which ready to dominate the petroleum cars but already Saudi face a economic fall. Even huge crowd come Saudi to Mecca and Madina as a religious place of Muslims which turns a revenue but the exact economic growth of the Saudi is always depends upon oil. Hope the country start giving importance to the Economic challenge more than the Physical Threat.
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