Report: Saudi Oil Revenue Hits 3-Year Low, Delaying Mega-Projects

By Staff, Agencies

Saudi Arabia's oil revenue has plunged to its lowest level in three years, forcing the kingdom to reconsider or postpone some of its ambitious development projects.

According to government data cited by Bloomberg on Thursday, Saudi Arabia generated just $17.7 billion from crude oil and refined product exports in June, marking a decline of over 9 percent year-on-year and approximately 12 percent from May.

The report attributes the drop in revenue to falling crude prices and Saudi Arabia's decision to reduce oil production.

An earlier Bloomberg report also highlighted a consistent decline in Saudi crude exports to China and India, two of the kingdom's largest customers, in recent years.

This decline in oil income comes at a critical time for Saudi Arabia, as the kingdom relies on petrodollars and foreign investment to fund its large-scale construction projects envisioned under Mohammed bin Salman's Vision 2030 strategy, which aims to diversify the oil-dependent economy.

One of the projects impacted is The Line, a mirror-clad desert metropolis and a key component of the Neom mega-project, the centerpiece of Vision 2030.

Saudi officials, who initially projected that 1.5 million people would reside in The Line by 2030, now anticipate fewer than 300,000 residents.

Additionally, only 2.4 kilometers of the project are expected to be completed by 2030, far short of the planned 170-kilometer stretch.