April 25, 2016

CHANGE: Saudi Arabia Approves Economic Reform Program.

The program’s overarching objective is to diversify the Saudi economy, in which oil still makes up more than 70% of revenue.

Prince Mohammed on Monday presented a broad overview of what has been billed as country’s most extensive economic shake-up in decades. Speaking to reporters on Monday he said the project—dubbed “Saudi Vision 2030”—includes plans to set up the world’s largest sovereign wealth fund, to sell less than 5% of state-owned oil giant Saudi Arabian Oil Co. and to implement reforms aimed at boosting revenue from non-oil sources.

“By 2020, we’ll be able to live without oil,” Prince Mohammed told Saudi news channel Al-Arabiya in an interview aired earlier on Monday. Details of the plan are expected within six weeks.

Riyadh will be able to substitute the 70% of its budget made up from oil revenues in just three years from now?

Color me skeptical.

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