Saudi Arabia's Mohammed bin Salman named new crown prince

Saudi King Salman ousted his nephew as crown prince on Wednesday and installed his son Mohammed bin Salman, the first of a new generation set for power in a conservative kingdom used to ageing leaders.

Saudi crown prince Mohammed bin Nayef has been relieved of his post and replaced by Mohammed bin Salman who becomes deputy prime minister and retains his defence and other portfolios, a royal decree issued by the Saudi state agency SPA said.

The appointment of Mohammed bin Salman, 31, completes a gradual removal of powers from Mohammed bin Nayef, 57, who has been fired, with his rise symbolising the hopes of Saudi's youthful population, more than half of which is under 25.

Although Mohammed bin Salman's promotion was expected among close circles it came as a surprise at a time the kingdom is facing escalating tensions with Qatar and Iran and is locked in an air war in Yemen.

Prince Mohammed bin Nayef, for years the kingdom's counter-terrorism chief who put down an al Qaeda campaign of bombings in 2003-06, is relieved of all positions, the decree said.

Even as deputy crown prince, Mohammed bin Salman has been responsible for running Saudi Arabia's war in Yemen, dictating an energy policy with global implications and spearheading plans for the kingdom to build an economic future after oil.

He also chaired the Council of Economic and Development Affairs which coordinates economic policy, and oversaw a body overseeing state oil giant Saudi Aramco.

As defence minister he holds overall responsibility for the kingdom's military intervention in Yemen. Saudi Arabia leads a coalition supporting the internationally-recognised Yemeni government against Iran-backed rebels.