Saudi Arabia's path to transition, part 1: Energy diversification

The oil behemoth recognises the need to broaden its energy mix to reduce both environmental and economic risks

Saudi Arabia holds one-sixth of the world’s oil reserves and remains a major player in the global oil market, producing 9.61m b/d of crude oil in 2023. The discovery of the Dammam oilfield in 1938 marked the beginning of Saudi Arabia's economic transformation, driven by oil. This development led the country to become a founding member of OPEC in 1960. Over the decades, oil revenues fuelled significant economic growth, positioning Saudi Arabia as a member of the G20 with a GDP of $1.07t in 2023. In fact, oil revenues accounted for 62.29% of the national budget in 2023, underscoring the country’s deep reliance on the sector. However, the Saudi government has recognised the economic and environ