Saudi Arabia has separated the Ministry for Energy, Industry and Mineral Resources into two entities, with Khalid al-Falih now heading only the energy ministry.
The newly created Ministry of Industry and Mineral Resources was placed under Bandar Alkhorayef, an investor and industrialist brought from the private sector, Reuters reported Aug. 30 citing a royal decree issued on Aug. 30.
Saudi Arabia is aiming to lower dependence on oil and to create jobs under its Vision 2030 goals by diversifying its economy and developing public service sectors such as health, education, infrastructure, recreation and tourism. Mining and industry are seen as key to achieving these goals.
Al-Falih said in 2018 that the country was aiming to develop its mining industry to increase the sector's contribution to GDP from US$17 billion to US$64 billion and generate 160,000 additional jobs by 2030.
Saudi industrialists were unhappy with the lack of progress on the goals during al-Falih's tenure, two sources told Reuters, which added that the decision followed meetings between the industrialists and Crown Prince Mohammed bin Salman.
The ministries will become fully independent Jan. 1, 2020, and al-Falih will also retain chairmanship of state oil giant Saudi Arabian Oil Co.
In a tweet on Aug. 31, al-Falih congratulated Alkhorayef on the appointment, saying that he would continue to work with the new minister and colleagues in energy, industry and mineral wealth to achieve the country's development goals.
