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.
One change announced on Friday affected one of the most senior women in government. Deputy labour minister Tamadur al-Ramah was replaced as Riyadh struggles to create jobs for its overwhelmingly young population.