April 28, 2016

TSG IntelBrief: Saudi Arabia’s Plan to Get Off Oil

• Deputy Crown Prince Mohammed bin Salman’s announcement of Saudi Arabia’s ‘Vision 2030’ laid out the country’s ambition to move away from oil dependence within 14 years

• Since 1970, Saudi Arabia has periodically announced ambitious plans to diversify the oil-dependent country’s economy; none have had much impact

• The announcement follows a year of low oil prices and high military expenditures that pushed the Saudi budget deficit to 15% of GDP in 2015

• Saudi Arabia’s commitment to this initiative will be tested when oil prices inevitably rebound and economic pressures ease.