Saudi Arabia's King Salman on Saturday replaced his veteran oil minister and restructured some big ministries in a major reshuffle apparently intended to support a wide-ranging economic reform programme unveiled last week.

 

The most eye-catching move was the creation of a new Energy, Industry and Natural Resources Ministry under Khaled al-Falih, chairman of the state oil company Aramco. He replaces the 80-year-old oil minister Ali al-Naimi, in charge of energy policy at the world's biggest oil exporter since 1995.

 

Saturday's decrees also broke up the Water and Electricity Ministry, with the water portfolio added to a new Environment, Water and Agriculture Ministry, and electricity added to the new energy ministry. Former Minister of Agriculture Abd al-Rahman al-Fadhli was appointed Minister of Environment, Water and Agriculture after the Ministry of Agriculture was abolished.

 

Those changes may help Saudi Arabia to cut subsidies, reduce domestic power and water consumption, make sure that energy pricing meshes clearly with industrial development goals, and that nuclear and solar policy are more carefully integrated.

 

 

PHOTO: Saudi King Salman delivers a brief statement as Saudi Arabia's cabinet agrees to implement a broad reform plan known as Vision 2030 in Riyadh, April 25, 2016.

CREDIT: REUTERS/Saudi Press Agency/Handout via Reuters.