Life After Oil: Charts Show Saudi Arabia's Economic Challenges
- Officials revealed `vision' for post-hydrocarbon era on Monday
- IMF projects lower growth, oil break-even price to remain high
Saudi Arabia Makes Plans for Life After Oil
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Almost eight decades after oil was first found in Saudi Arabia, the government has unveiled a blueprint for an economy less reliant on crude sales to fuel growth and fund infrastructure. Four charts show the challenges the kingdom faces and the probable impact of the new policy.
The government has cut spending to shore up its public finances while seeking an alternative source of revenue. Deputy Crown Prince Mohammed bin Salman says authorities want to generate $100 billion per year in additional non-oil revenue by 2020. Reducing subsidies for gasoline, electricity and water will account for $30 billion of that amount, while a new value-added tax will generate $10 billion a year.