Income source diversification ‘inevitable’ in Saudi Arabia – Economist

August 4, 2015 2:06 PM

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Riyadh-Mubasher: Most GCC states rely on oil as the main source of income, and thus they are negatively impacted by oil price fluctuations, said economist Barjas Al-Barjas.

He added that these countries must diversify their sources of income in order to avoid such a problem.

Nearly 75% of the plants in Saudi Arabia produce petrochemicals, and thus they are significantly affected by any decline in oil prices.

The kingdom relies on industries and advanced services, but imports cars, trains and equipment at a total value of more than SAR 650 billion annually, which are sold at trillions of riyals locally.

Al-Barjas said if the kingdom focuses on these industries, it will diversify its sources of income and offer several job opportunities.


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