Saudi Arabia Opens Up for Russia-First Ever Special Report from the Mysterious Kingdom
A special report by Natalya Popova.
A historical event -the king of Saudi Arabia visits Russia for the first time. The goal of the visit is not only to develop economic ties but also to improve understanding between our countries. Based on the busy schedule of meetings, the mutual interest is obvious. In May 2017, Vladimir Putin held talks with the crown prince - Mohammad bin Salman Al Saud: "The relationship between Saudi Arabia and Russia is at one of its highest points. Our two countries have a lot of mutual understanding".
We are currently preparing a unique documentary about Saudi Arabia. Television programs about this country are quite scarce. Since its early history, this state has been one of the most closed off in the world. And yet, here we are, discovering Saudi Arabia. Not once again, but for the first time.
This is the first Russian film about Saudi Arabia filmed in the kingdom itself. Our film crew visited places which were previously off limits to journalists. We met with prominent businessmen and top government officials. The actual film will be aired later, but right now you have a chance to see some of the footage.
Awwad Alawwad, Minister of Culture and Information in Saudi Arabia: "Working together as part of collaboration programs, we'll help many people in both of our countries to understand each other, which is very important".
The Kingdom of Saudi Arabia is the biggest country on the Arabian Peninsula, a leading oil exporter and one of the world's most influential countries. It's located at the intersection of three continents - Asia, Africa, and Europe. It has access to the Red Sea and the Persian Gulf. It's the center of the Muslim world and the cradle of Islam. It also hosts two cities that are sacred to every Muslim - Mecca and Medina, the places where Muhammad the Prophet was born and buried.
Millions of pilgrims from all over the world visit these cities every year, and the king of Saudi Arabia is called the Custodian of the Two Holy Mosques.
Despite its rich history, the country is young. It's not even 100 years old. In 1926, King Abdulaziz Al Saud founded the independent kingdom of Hejaz, Nejd and neighboring areas, which would later be called the Kingdom of Saudi Arabia.
Our country was the first one to recognize its sovereignty. After many years of searching for oil, it was finally discovered in the late 1930's. Here we have the first oil well drilled in Saudi Arabia in 1936.
It ushered in the era of oil production - a new era in the kingdom's development. The future of this place is framed by the Vision 2030 program - it's a package of reforms based on a detailed plan for the country's economic development. New sources of income will help the country to reduce its historical dependence on oil. To this end, Saudi Arabia is going to diversify its national assets and secure significant foreign investments.
Saudi Aramco is the biggest petroleum and gas company in the world both in terms of oil reserves and oil production. It owns 157 active drilling rigs.
Under the new program, Saudi Aramco will sell 5% of its shares, and the proceeds will be invested into projects around the globe.
Amin H. Nasser, President and CEO of Saudi Aramco: "We will continue our operations in the private sector. We plan to increase our contribution to GDP from 40% to 60%".
The proceeds from selling Saudi Aramco shares will go to the Public Investment Fund. It means the reforms are opening the Saudi market to international business.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund: "Companies like Eurasia Drilling can attract investment and significantly increase their presence in the Middle East. Also, SIBUR is negotiating an interesting project on building a rubber production factory in Saudi Arabia. So indeed, the Saudi Arabian market looks very promising to many Russian companies".
Talking about oil — the joint efforts of Saudi Arabia and Russia played a crucial role in the historic agreement of OPEC and the 11 oil exporting countries which are not the part of the cartel. The agreement to cut oil production was signed last November. It allowed keeping oil prices at a stable and mutually beneficial level.
Khalid Al-Falih, Saudi Arabian Minister of Energy: "Our experience in the oil sector can be applied to other sectors for the good of Russia, Saudi Arabia, and the rest of the world".
Initially, the OPEC+ agreement was signed for half a year, but in the spring it was extended for another 9 months.
Aleksander Novak, Russian Minister of Energy: "Naturally, there's this option - if the market doesn't reach a balance, then at the end of this year or early next year, we might extend the agreement further".
Oil accounts for 90% of the export and 75% of the budget revenue of Saudi Arabia. In terms of black gold reserves, the country is second in the world, but it's clear that in the future this resource will become scarce. In the near economic future, oil will be edged out by alternative sources of energy.
That's why investments into this sector get higher priority every year. The kingdom is planning to invest 30 to 50 billion dollars into the production of wind, nuclear and solar power. And it does have a huge potential.
Extensive desert areas and practically the most intensive solar exposure on Earth make solar energy the perfect resource for Saudi Arabia. Thousands of square kilometers can be covered with solar panels.
Another strategic sector is tourism. In December 2013, for the first time in history, Saudi Arabia announced plans to start granting tourist visas. And that's just the beginning.
As you can see, the country is indeed opening up and ready for change. During our stay in the kingdom, the king signed another important bill into law.
There are no cities in Saudi Arabia where you'll see a woman behind the wheel. It's the only country in the world where women are officially banned from driving a car. That is... Until now. Historic events are unfolding right in front of us. Today, the king has signed a bill which allows women to drive a car.
We hope that the historic visit of Saudi Arabia's king to Russia will become a starting point for close cooperation between our countries, including in the tourism sector. And then you'll be able to see for yourself the quaint historical center of Jeddah, the modern skyscrapers of Riyadh, the economic city of King Abdullah, the futuristic cultural center of King Abdulaziz, and the red sands of the Rub' Al Khali desert.
But for now, our film will help you get a full picture of this country. For now, we've shown you just a few clips from our trip to Saudi Arabia. Soon, you'll be able to see it all. Coming soon to Russia 24 - Discovering the East.