Saudi Arabia splits industry and mining from energy ministry

Saudi Arabia created a new ministry for industry and  mineral resources, separating it from the kingdom’s colossal energy  ministry, and replaced the powerful head of the royal court, in a series  of royal orders issued late on Friday.

Bandar Alkhorayef, an  investor and industrialist plucked from the private sector, was named to  head the new entity, which will become independent on Jan. 1. The move  appears to diminish the sprawling authority of Khalid al-Falih, who  retains control of the energy portfolio and chairmanship of state oil  giant Saudi Aramco.

Falih had overseen more than half the Saudi  economy through the super-ministry, which was created in 2016 to help  streamline new reforms. But despite ambitious plans for industry and  mining, the sectors have seen relatively little development. Two  sources said Saudi industrialists were unhappy with a lack of results  during Falih’s tenure.

The separation followed meetings between those  businessmen and Crown Prince Mohammed bin Salman, the country’s de facto  ruler, one source added. Industry and mining are critical to the  young crown prince’s push to diversify the economy of the world’s top  oil exporter away from crude, cut bloated state spending and create  millions of jobs for young Saudis. Saudi economist  Fawaz al-Fawaz said the split was a step in the right direction but  still not enough.

“There are scattered efforts in local content and  military manufacturing and a constant lack of investment. We need more  thought,” he said on Twitter.

In a separate royal order, Fahd bin  Mohammed al-Essa was appointed head of the royal court, a powerful  gatekeeper position in the absolute monarchy. Essa was formerly the head  of Crown Prince Mohammed bin Salman’s office at the defence ministry.

Former  information minister Awwad al-Awwad was named new head of the official  human rights commission, and Mazen al-Khamous was made chairman of the  national anti-corruption commission, according to the orders.

Riyadh  launched a sweeping anti-corruption campaign two years ago which netted  princes, senior officials and top businessmen. Critics said the  campaign amounted to a power play and shakedown of political rivals.

The  kingdom has also come in for international censure over alleged human  rights abuses, including the murder of journalist Jamal Khashoggi and  the arrests of scores of dissidents including prominent women’s rights  activists. One change announced on Friday affected one of the  most senior women in government. Deputy labor minister Tamadur al-Ramah  was replaced as Riyadh struggles to create jobs for its overwhelmingly  young population.