According to media reports, Saudi Arabia plans to sell up to 49 percent of its oil giant Saudi Aramco within 10 years as the world's largest crude exporter tries to lower its deficit. The kingdom is looking to diversify its oil-dependent economy and has already announced cutbacks after its 2015 deficit snowballed to $97 billion (93 billion euros).
The long spell of lower oil prices has begun to tell on world's largest oil producer in a menacing manner. Not only is kingdom facing lower revenue from oil sales, it is also involved in a costly war in Yemen which is eating up a lot of its income. There are reports that Riyadh is mulling exploring various options to raise its revenues. Pakistanis working in Saudi Arabia have also been hit by the current economic slow down there.
Unfortunately, Saudi Arabia has already lost numerous opportunities to transform its rent-seeking economy into a manufacturing or services trade economy. It is about time that Riyadh took actions aimed at broadening and diversifying its economy with a view to dealing with current and future challenges.