Since the discovery of oil in commercial quantities at Dammam oil well No.7 in March 4, 1938, Saudi Arabia has been almost totally dependent on the oil-export revenues. Seventy eight years later and a cumulative production of 146 billion barrels of oil (bb) since then, Saudi Arabia's budget is still dependent on the oil revenues to the tune of 90%. This is a moment of high anxiety in Saudi Arabia. Oil prices, currently $50/barrel, are less than half the level the Saudi government needs in order to balance its books. Moreover, its financial reserves are depleting very fast. There is nothing the Saudis need more than comprehensive economic reform. The kingdom must end its deep reliance on the oil revenue and build a dynamic 21st century economy. The current path can't be sustained much longer. That is why the kingdom has launched Vision 2030 which aims to expand the non-oil sector of the economy and reduce unemployment. However, to achieve the objectives of Vision 2030, Saudi Arabia needs to start the diversification of its economy without a minute's delay. The paper will argue that as Vision 2030 is a plan designed to create a 21st century Saudi economy virtually from scratch, it will encounter some huge hurdles not least because of the suspicion that this project has something to do with the generational change in leadership when king Salman departs the scene. It will also argue that Vision 2030 may not achieve much since it's not bold enough in the area that matters most -- developing human capital. Still it is a step in the right direction if there is the political will to go ahead with it.

Based on remarkable primary research, this unique contemporary account of the lives of young Saudi men reveals a distinct group of voices.

This book discusses the strategic shift in ownership of Aramco, the Saudi Arabian Oil Company, and its potential impact on Aramco's role in a post- privatized world. Scheduled to become an IPO in 2018, Aramco is on the verge of becoming the largest IPO on the market. As the world’s largest oil and gas company, Aramco’s impending privatization has important implications for the world’s petroleum market. This book, therefore, undertakes an analysis of Aramco, examining its history, its current role in Saudi Arabia’s economy, and its future role as an IPO. The chapters highlight the likely outcomes for Aramco in proceeding with its planned IPO and privatization, as well as the various policy options and models available to it by drawing on the privatization of other national oil companies in Norway , Russia, Brazil, and China. The book also explores the complexities that will be involved in transforming Saudi Aramco to a privatized company—albeit with significant government oversight and control—and addresses key questions on the issues likely to be faced, such as IPO pricing, the listing, domain, and market capacity, and potential stakeholders. As such, this book will be of interest to academic researchers studying energy economics, energy policy, and the political economy of the Middle East, as well as private sector decision makers in energy related fields, international organizations, international oil companies, energy commodity traders, and public sector energy policy makers with interest in Saudi Arabia and Aramco’s IPO.

Making sense of Saudi Arabia is crucially important today. The kingdom's western province contains the heart of Islam, and it is the United States' closest Arab ally and the largest producer of oil in the world. However, the country is undergoing rapid change: its aged leadership is ceding power to a new generation, and its society, dominated by young people, is restive. Saudi Arabia has long remained closed to foreign scholars, with a select few academics allowed into the kingdom over the past decade. This book presents the fruits of their research as well as those of the most prominent Saudi academics in the field. This volume focuses on different sectors of Saudi society and examines how the changes of the past few decades have affected each. It reflects new insights and provides the most up-to-date research on the country's social, cultural, economic and political dynamics.