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King Salman And Saudi Arabia Turn To Renewables To Evolve And Diversify National Economy

Saudi Arabia, December 26, 2017

Summary

Saudi Arabia has created the Vision 2030 to diversify its economy.

Vision 2030 calls for significant growth of renewable generating capacity.

The creation of the plan was because of crash of oil prices.

Saudi Arabia's location and climate make the country perfect for several sources of renewable energy.

This adoption labels Saudi Arabia as a clear leader in renewable energy among other Gulf countries.

It has been said that in order for Saudi Arabia to develop 6 gigawatts of solar by 2020, TEN THOUSAND solar panels must go up every day. Well, that's what was said in a letter from Energy & Capital called, Saudi Solar Investing: Saudi Arabia's Secret Weapon. Let's just take a moment and imagine how many that is...Ok, now, let's get serious.

Introduction

Known for its incredible oil reserves and low cost of extraction, Saudi Arabia, headed by King Salman bin Abdulaziz Al Saud, Energy Minister Khalid al-Falih, and Crown Prince Mohammad bin Salman has been determined to revolutionize its economy and brace itself for the future of energy. I am talking about renewable energy. Saudi Arabia is trying to position itself to take advantage of spectacular geographic gifts bestowed upon the Kingdom and eventually becoming a leader in renewable energy generation as it is for oil. Saudi Arabia, to make this a reality, has created what they call the Vision 2030, which aims to create a 'journey for a deep and ambitious socio-economic change in the Kingdom' by developing a post-oil economy.

This article will provide in-depth analysis and insight regarding the Kingdom of Saudi Arabia, KSA, plans to transform its oil-based economy into a sustainable economy, being more reliant on renewable energy, further permitting for budget balancing, and societal benefits, and becoming a global leader in the renewable energy generation.

Background on The Kingdom

Saudi Arabia is located on the Arabian Peninsula, in the Middle East, and is led by King Salman bin Abdulaziz Al Saud. The country boasts the world's 19th largest economy, which is heavily reliant on the production of oil. Traditionally, the Saudis have been a leading producer and exporter of oil, due to their incredibly low extraction costs. In fact, they rank 2nd in the world in terms of proven reserves, at 266 billion barrels of oil, equating to 18% of the world's total reserves. The middle-eastern country is also very religious, as its national religion is Islam. Religion is deeply embedded into every facet of life in Saudi Arabia, even the Vision 2030. Lastly, Saudi Arabia is gearing up for what would be the largest IPO ever, the IPO of its state-owned oil behemoth Saudi Aramco (ARMCO). Interestingly, there is much speculation that Aramco could fetch a valuation around $2 Trillion.

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