“The Kingdom will go ahead with this policy despite the current economic situation and the challenges being faced by the energy sector,” the Cabinet said following its weekly meeting chaired by Custodian of the Two Holy Mosques King Abdullah.
The Cabinet said the Kingdom would also focus on research and development, acquiring modern technology to develop a variety of environment-friendly energy products.
The Cabinet meeting made this assurance after reviewing the outcome of the last meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna on Wednesday. During the OPEC meeting, Petroleum and Mineral Resources Minister Ali Al-Naimi warned of a possible “catastrophic” energy supply crunch without prompt investment.
“In years to come, if traditional energy supplies should prove inadequate because capital expenditure was curtailed due to unsustainable prices, unreliable indication of future demand or hopes for a substitute that oil cannot deliver, such a supply crunch would be catastrophic,” he told the conference.
The Cabinet approved changes to the aviation agreement with Nigeria, allowing both sides to operate more than one air carrier. It also decided to establish diplomatic relations with Namibia with a nonresident ambassador.
The Cabinet endorsed an agreement signed with Sweden to promote and protect mutual investment and licensed the establishment of a new holding company named Hassana Investment Company. Fully owned by the General Organization for Social Insurance (GOSI), Hassana will invest in real estate, commercial and service projects.
