The reshuffle was announced by royal decree through state television early on Wednesday.
Though it was reported Moqren had sought the king relieve him of his duties, observers saw this as the king's move to consolidate his own position in the power structure.
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Nayef, the grandson of the founder of Saudi Arabia, now appointed as crown prince, will also remain minister of interior affairs.
Al Jazeera quoted Khalil Jahshan, the executive director for the Arab Centre of Washington from Fairfax, Virginia, as saying that the reshuffle was a "political earthquake of the greatest magnitude".
"The Saudi Arabia we knew a few hours ago is no longer there," Jahshan told Al Jazeera, adding: "These are serious changes that will have repercussions not only domestically but internationally."
This is a very decisive answer to the doubts that many experts have expressed since Salman came to power with regard to his health, his decisiveness and his control over political matters in the kingdom. This is his unequivocal answer.
King Salman, 79, came to power after the death of his half-brother, King Abdullah at the age of 90, in January.
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