Saudi Arabia: Oil as a Burden in the Struggle for Energy Diversification

Historically, Saudi Arabia’s economic progress has relied heavily on high oil revenues.In times of low oil prices, its rentier state system suffers from decreased revenues,which are needed to sustain a generous welfare state and highly subsidised energyservices for its growing population. To tackle this problem, the new Saudi leadership isnow seeking energy diversification by investing in renewables and nuclear energy.However, it remains to be seen whether this reform agenda will be implemented, astraditional structural, political and societal obstacles remain. While Saudi Arabia haspreviously boycotted international climate agreements, it now supports the ParisAgreement.