Saudi Arabia could save SAR 800 bln in next decade from gas, renewable energy sources: Al-Jadaan

Mohammed Al-Jadaan, Saudi Minister of Finance

Saudi Arabia could save nearly SAR 800 billion over the next decade by replacing liquid fuel used for domestic consumption with gas and renewable energy sources, Reuters reported, citing Minister of Finance Mohammed Al-Jadaan.

“Instead of buying fuel from the international markets at $60 and then selling it at $6 for Saudi utilities, or using some of our quota in OPEC to sell at $6, we’re going to actually displace at least 1 million barrels a day of oil equivalent in the next 10 years and replace it with gas and renewables,” Al-Jadaan said.

Between now and 2025, and possibly until 2030, fiscal sustainability is a priority.

Commenting on the unemployment rate, he said: “We are maintaining our unemployment target for 2030, but because we are not out of the woods yet it is very difficult to say what the unemployment rate is going to be for 2021.”

Saudi Arabia aims to reduce unemployment to below the 2019 levels, before COVID-19, Al-Jadaan said.

“But I can’t tell you this is going to happen for certain,” he added.

Earlier this month, Crown Prince Mohammed bin Salman inaugurated Sakaka IPP photovoltaic (PV) project in Al-Jouf and signed power purchase agreements (PPA) for seven new projects in line with the directives of Saudi King Salman bin Abdulaziz, Argaam reported.