Comparative Analysis Between Saudi Arabia and Norway in Moving Beyond Fossil Fuels Towards a Sustainable Economy: a Special Emphasis on the Renewable Energy Sector

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Saudi Digital Library
Saudi Arabia is the largest economy in the Middle East and the 18th largest in the world. The country has the world's second-largest proven petroleum reserves and is the largest exporter of petroleum. In 2016, Saudi Arabia had the third highest estimated value of natural resources at $34.4 trillion (US). However, because of the 2014 oil crash, climate change, and the development of renewable energy technology, the government has decided to transition from its complete reliance on oil revenues and to start investing heavily in other non-oil sectors, such as the renewable energy sector. The Saudi government plans to generate 30% of its electricity from renewable energy sources and to establish a sustainable competitive market system. The country has planned to make this enormous shift with the help of the McKinsey Global Institute and the plan titled “Saudi Arabia Beyond Oil: The Investment and Productivity Transformation,” which is also known as “the vision of 2030.” Saudi Arabia and Norway are similar countries as they are both oil producers. Norway is a leading country in terms of creating a sustainable economy that generates electricity mostly from renewable energy, while Saudi Arabia has recently decided to shift away from fossil fuels and to focus on non-oil sectors, such as the renewable energy sector. Thus, this thesis will provide a comparative study between Saudi Arabia and Norway. This analysis will benefit Saudi Arabia with the Norwegian success in shifting from its reliance on fossil fuels to other non-oil sectors, mainly the renewable energy sector. The thesis will address the challenges that Saudi Arabia may encounter in achieving its goals related to the 2030 vision of shifting toward a sustainable economy and will offer some recommendations to facilitate achieving these goals