Thursday, October 13, 2016

Saudi Arabia, Where Even Milk Depends on Oil, Struggles to Remake Its Economy

In AL KHARJ, Saudi Arabia, the Saudi king's favored son, Deputy Crown Prince Mohammed bin Salman has held up the dairy farm, Almari, as a model for Saudi Arabia which is trying to wean itself from oil dependence. Many companies like Almari rely on the cheap energy provided by crude oil. Because of low oil prices and an increasingly costly war in Yemen has caused cuts in pubic spending in the Saudi budget, and reductions in take-home pay and benefits for the government workers. Saudi Arabia burns barrel after barrel of crude oil for electricity in large quantities. Prince Mohammed has a plan to transform the economy, his future as king relies on the success of this plan. He announced this year that he plans to sell off a small piece of the country's economic crown jewel, Saudi Aramco to free up money for investment.

-Taylor Sikora

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