IslamicFinance.de

In the face of plummeting oil prices, Saudi Arabia has announced an economic strategy to shake off Saudi overreliance on fossil fuels. In the 'Saudi Vision 2030' Deputy Crown Prince Mohammed bin Salman proposed changes to generate $100 bn in additional non-oil revenue by 2020. In order to do that, the 30-year-old monarch plans to restructure Saudi Aramco, the state oil company. Less than 5% of Aramco’s stake would undergo an initial public offering, with an expected value of $2 trillion. The ownership of the rest to the company would be transferred to Saudi’s sovereign wealth fund, known as the Public Investment Fund (PIF). Prince Mohammed also called for the private sector to grow to 60% from the current 40%. Government services like education, health care and airports will be transferred to the private sector. As the country adjusts to the transition, economic growth is expected to slow as private sector expands.