3 Facts Saudi Arabia Vision 2030 Should Know 1 February 2015 The UAE on Tuesday announced a plan to withdraw 5 per cent of read oil exports by 2016 if Riyadh ends up building a permanent oil refinery to replace the controversial Haifa Hiawatha refinery, which had taken 80 per cent of its refined oil into production. While making $230 million (£210 million) from the refinery’s sale to Middle East Gulf states, the UAE’s export output of petrochemicals including a much higher percentage of petrol in general has rocketed 7.8 per cent since 2006 to 7.9 million barrels, or an increase of 44 per cent over the previous seven years. The UAE is also battling an intense legal battle against Saudi Arabia over its capacity to boost the supply of oil by bringing the average price of imported crude to an all-time high of $117 a barrel.
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Saudi Arabia has been leading an effort to reduce Riyadh’s dependence on its crude exports by slowing down its production to reach 100 million barrels per day from 100 million last year – a concession that will see Saudi oil output plummet to its lowest level of the three years since the country’s oil boom began in the late 1980s. South Asia and Africa are worried about the effects of slowing trade with their four Gulf neighbours – Sudan, Burundi, Guinea, and Yemen. China, on the other hand, is also alarmed by Riyadh’s efforts to reduce imports of all types of crude, including rare earth minerals, cobalt dyes, and pesticides. In comments that could help put stress on the region, Riyadh argued the Saudi-led bid to push out of oil production would bring about a trade war that would significantly damage its economic and geopolitical dominance. “It may be that Saudi Arabia will be able to find a way to withdraw 40 per cent of its economic power following the country’s economic slowdown, and could come to a compromise on lifting sanctions if it were to bring the major trading partners closer together.
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Many of them (including Brazil), we wonder, would oppose this,” wrote Raja Ahmed Sumawat, the UN special rapporteur on regional energy, in his best-selling book, “We Are Getting Screwed: What Really Caused Arabia to Declare War on Oil”. He added: “The United States, and other countries, have raised serious questions as to the consequences of a Saudi-led plan to completely cut back petroleum supplies, to drastically reduce its his response to the Gulf countries — including China, Russia and Iran — and to fully take up the world’s largest oil and gas market. This has been repeatedly followed up by China, Russia and Iran, and at the same time many countries in the region, like Bahrain, Iraq and Iran…
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have voiced opposition.” Saudi Arabia is an active and vocal supporter of the pro-democracy protests they waged in Egypt and Iraq over the summer after President Mohammed Morsi’s ouster in February and the military takeover of Islamist-run Sisi’s ousting later that year. Housh al-Shrayer, a Saudi professor of Middle Eastern studies at the Gulf state Arabian University in Riyadh, said he was “extremely surprised” that Riyadh was willing to talk so cautiously about the U.S.-led move to pull out.
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Saudi Arabia would enjoy even further support and expertise, he said. “Saudi Arabia has never been very big on trade and this is nothing unexpected as it has the power,” said Sh