Saudi Tesla Investment Is a Bet on Future But Oil Remains King
- Budget deficit dropped in the first half even as spending grew
- Government plans to wean economy off oil and raise taxes
The headlight of a Tesla Inc. Model S P100D sedan vehicle is seen at the company's new showroom in New York, U.S., on Thursday, Dec. 14, 2017.
Photographer: Mark Kauzlarich/BloombergThis article is for subscribers only.
Saudi Arabia is investing in future technologies such as electric carmaker Tesla Inc. to hedge against oil. But it’s the black stuff that’s still helping the kingdom shore up its finances.
Finance Ministry data released last week showed that income from crude exports surged 40 percent in the first six months of 2018, causing the budget deficit to narrow 43 percent. Non-oil revenue also jumped after authorities introduced value-added taxation.