Introduction
Despite diversification efforts, oil remains the backbone of Saudi Arabia’s economy. The Kingdom is the world’s largest oil exporter, and global energy dynamics still strongly influence its financial stability.
Body
- Revenue Contribution: Oil revenues account for more than half of the government budget.
- OPEC Leadership: Saudi Arabia plays a leading role in OPEC, influencing global oil prices and supply.
- Economic Risks: Fluctuations in oil prices affect national income, prompting the government to accelerate diversification.
- Balancing Act: While investing in renewable energy, Saudi Arabia is also modernizing its oil infrastructure for long-term competitiveness.
Conclusion
Oil continues to dominate Saudi Arabia’s economy, but the government is balancing between maintaining its oil leadership and building a more resilient post-oil economy.