Saudi Finance Minister Mohammed Al-Jadaan stated that declining oil revenues present a strategic opportunity to reassess investment priorities, but stressed this would not derail the Kingdom’s ambitious economic diversification plans. His comments come as Brent crude trades over 20% below 2022 peaks, with OPEC+ preparing to maintain its modest monthly output hikes of 411,000 barrels per day in July—a move partly aimed at disciplining quota-violating members like Iraq and Kazakhstan.
The minister framed the revenue dip as a constructive pressure test for Vision 2030 reforms, accelerating the shift toward non-oil sectors like technology and tourism. Saudi Arabia continues leading OPEC+ efforts to stabilize markets, even as it leverages lower prices to consolidate its influence over the cartel. The proposed production adjustment reflects Riyadh’s delicate balancing act: maintaining fiscal discipline within OPEC+ while advancing long-term plans to reduce oil dependency.
Analysts note the Kingdom’s $620 billion sovereign wealth fund provides ample buffers to sustain diversification investments. With inflation pressuring global economies, Saudi Arabia appears willing to tolerate short-term oil revenue volatility to achieve structural economic transformation—a strategy that could redefine its geopolitical role regardless of commodity cycles.
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