The reshuffle comes after the Saudi government faces intense international pressure over the killing of Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul.
Saudi King Salman has issued a series of royal decrees that has the effect of creating a major cabinet reshuffle.
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The appointments make former finance minister Ibrahim al-Assaf as the new foreign minister and also include changes to key national security posts, state media reported Thursday.
The reshuffle comes after the Saudi government faces intense international pressure over the killing of Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October.
Assaf, was a former finance minister and a board member of national oil giant Saudi Aramco, but was among the group of people detained by the Crown Prince Mohammed Bin Salman (MBS) as part of a "corruption crackdown" in November 2017.
While being ‘imprisoned” in the opulent Ritz-Carlton, an investigation found no evidence of wrongdoing and his name was cleared.
Assaf replaces Adel al-Jubeir, who was effectively demoted to Minister of State for Foreign Affairs.
The king also appointed Prince Abdullah bin Bandar bin Abdulaziz to replace Prince Miteb bin Abdullah as chief of the National Guard, and ordered a reshuffle of Saudi Arabia's Political and Security Council.
General Kalid bin Qirar al-Harbi was named general security chief, while Musaed al-Aiban was appointed national security adviser.