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Saudi Arabia, the world’s leader producer of Crude Oil tries to diversify it’s economy depending on 45% (of GDP) in Oil Rents (80% of its real revenues). Manufacturing sector remains steady at 10% and agriculture at 2% .The Agricultural percentage is a rational percentage as the country has some of the most well-known deserts in the world.
Saudi Arabia’s government is putting now more than $70 billion on the table in order to develop six new “economic cities” with modern buildings and business-friendly policies and regulations. Mars as well put its manufacturing plant in one of them, King Abdullah Economic City, on the Red Sea coast . It hopes these cities will host clusters in which firms from a particular industry huddle together, their proximity boosting their productivity and creativity, The Economist said.
Saudi Arabiaconvinced its fellow OPEC members that it was not in the group’s interest to cut oil output however far prices may fall. Suppliers from outside the Organization of Petroleum Exporting Countries should cut “irresponsible” output, U.A.E. Energy Minister Suhail Al Mazrouei said in Abu Dhabi yesterday. Even if non-OPEC producers were to offer cuts, OPEC probably wouldn’t follow suit, Saudi Oil Minister Ali Al-Naimi said. The biggest oil producers outside OPEC are the U.S. and Russia.
Oil fell about 20 percent since OPEC chose to maintain its production target at a Nov. 27 meeting, seeking to defend market share rather than prices. The highest U.S. crude output in at least three decades is contributing to a glut that Qatar estimates at 2 million barrels a day.
Hard-hit countries like Iran, Russia and Venezuela suspected the move was a coordinated effort between the oil kingdom and its longtime ally, the U.S., to weaken their foes’ economies and geopolitical standing.