Saudi King Salman announced a series of changes in the government on Saturday, sacking some ministers in a major cabinet reshuffle.
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The country’s Vision 2030 plan, announced on April 25, unveiled a package of economic and social reforms aimed at ending the kingdom’s “addiction” to oil and transforming it into a global investment power.
Saudi Arabia is the world’s largest crude oil exporter with 70 percent of its revenues coming from oil in 2015, according to BBC, but falling oil prices have hurt the country’s economy.
But investors will appreciate his steady hand as Saudi Aramco makes a move to be more transparent as it prepares for a partial IPO. While accompanying King Salman on a visit to the USA in September 2015, al-Falih said OPEC’s strategy of protecting global sales against competitors from outside the group was leading to a rebalancing of the market and a recovery in prices. “This is the guy who for all intents and purposes has been the global oil market for the last 30 years”, said Phil Flynn, senior market analyst at Price Futures Group, of al-Naimi.
The big state-controlled companies, oil producer Aramco, petrochemicals and metals conglomerate Saudi Basic Industries Corp (Sabic), Saudi Arabian Mining Co (Maaden) and state utility Saudi Electricity Co (SEC), fit in between them.
“Saudi Arabia more than anyone else has the capacity to wait out the market until this balancing takes place”, he said.
Saudi Arabia’s dominant market share and historical ability to influence prices by loosening or tightening its taps gave al-Naimi exceptional influence at meetings of the oil cartel OPEC, where the kingdom is by far the largest producer and de facto policy-maker. No longer would Saudi Arabia cut its oil production to lift prices, he told CNNMoney outside a meeting of oil producers in December 2014. Al-Naimi was always seen as a dependable, even-handed minister who would help to balance supply and demand.
Salman also named new ministers to run the water, transport, commerce, social affairs, health and pilgrimage portfolios and restructured some ministries in a shake-up focused on areas where the government has promised change.
Saudi Arabia appointed Mr. Al-Falih on Saturday to head the newly expanded Ministry of Energy, Industry and Mineral Resources.
Tawfiq al-Rabeeah, formerly commerce minister, has been appointed to the position of health minister.
Al-Falih took office as president and chief executive officer of Saudi Aramco on January 1, 2009, according to the company’s website. He holds a bachelor’s degree in mechanical engineering from Texas A&M University and an MBA from Saudi Arabia’s King Fahd University of Petroleum and Minerals.
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But with another huge budget deficit forecast this year, last month saw the approval of wide reforms including plans to create the world’s biggest sovereign wealth fund and widen the participation of women in the workforce.
