Saudi Finance Minister Dismissed

Reports indicate that the King of Saudi Arabia dismissed the country's Minister of Finance and Economic Affairs on Monday as part of an economic restructuring program to address the consequences of falling oil prices in the global market. The official Saudi news agency published King Salman's decree removing Ibrahim Al-Assaf from his position. The decree states that Ibrahim Al-Assaf has been 'dismissed from his position.' According to the report, Mohammed Al-Jadaan has been appointed as the new Minister of Finance of Saudi Arabia. A foreign diplomat had previously told AFP that the issue of Ibrahim Al-Assaf's dismissal had been raised weeks ago, as he has held this position for many years. Since King Salman took office in 2015, oil prices in global markets have also faced a significant decline. In response to the sharp drop in oil prices, Saudi Arabia has begun major financial policy changes. According to the International Monetary Fund, the 'Saudi Vision 2030' and 'National Transformation Program' contain ambitious reforms aimed at reducing the country's dependence on oil revenues, strengthening non-oil economic growth, and increasing job opportunities. Earlier this year, Saudi Arabia announced its economic reform plan for the next 15 years. Under this plan, five percent of the shares of Saudi Aramco, one of the largest oil companies in the world, will be sold. The value of this state-owned Saudi company is estimated to be around two trillion dollars. The establishment of a currency reserve fund for the development of Saudi cities is also among the other economic reform programs in Saudi Arabia. Oil prices have fallen from over $115 in mid-2014 to about $25 in mid-January and are currently fluctuating around $50. Saudi Arabia derives about 70 percent of its revenue from oil exports. The International Monetary Fund states that this program has begun with a focus on reducing government expenditures and increasing non-oil revenues and should continue at least in the medium term. This institution mentioned that other Gulf Cooperation Council countries have also implemented programs to reduce reliance on oil revenues since last year and must gradually find ways to reduce budget deficits.