Connect with us

Middle East

Saudi Arabia and the Labyrinth of Economic Problems

Published

on

After a few years of low oil prices, the Saudi kingdom has been hit by economic crisis, Riyadh leaders have faced some other challenges. These challenges are accompanied by a reduction in foreign investment. The developments policies led by Crown Prince Mohammed bin Salman have made the situation harder for foreign workers, pushing them out of Saudi Arabia, many of whom are in very inappropriate conditions, far from basic human rights. They are busy working hard and now they have no choice but to leave the peninsula and return to their homeland because of lower income and tax increases.

The crown prince of Saudi Arabia considers himself a savior of the country and its driving towards modernization in the social and economic spheres, but simultaneously he puts investment and financial conditions on the country to a vague future. After the fall in oil prices, the crisis of lowering foreign investment is not the last consequence of the future and the demands of Ben Salman.

According to the Al Jazeera Research Center website, Qatar’s path of economic reform in Saudi Arabia has been at the risk of political stagnation. In the 2030 vision document, political issues are generally ignored. Political reform cannot succeed in the light of the current structure, and many factors make it difficult to implement political reform. One of these issues is the disintegration of the ruling family. The dispute over power within the ruling kingdom of Saudi Arabia threatens the country’s system. Hence, the reform plan led by bin Salman will face resistance in the future.

In the same vein, the Financial Times, quoted by two Western diplomats, writes that opponents of the crown prince, Mohammed bin Salman, are rising inside the ruling dynasty. His mistakes in the Yemeni war and the increase in popular discontent will be the failure of his economic plans. Also, bin Salman’s economic and social reforms have caused tensions between him and conservative forces in the country. The Saudi system expects foreign investment and the level of prosperity and secular tourism in the country to increase. However, this will erode religious institutions, thus they will rise in opposition to bin Salman, which will undermine Saudi political stability.

Saudi oil prices have been rising over the past few months, but it certainly can not be a success for the country’s economy in the long run. Bloomberg reports May this month (mid-May to mid-June), the worst month for the Saudi economy, but with the global rise in crude oil prices slightly improving, and domestic production increased 1.2 percent.

Meanwhile, the report of the International Investment Corporation (IFI) estimated the withdrawal from Saudi Arabia at $ 101 billion, accounting for about 15% of Saudi Arabia’s net production.

So far, hundreds of thousands of foreign workers have left Saudi Arabia due to fluctuations and declining economic trends. The Times reported in a report on the escape of 700,000 foreign workers from the Saudi economy and wrote that the recession in the construction industry has led to the destruction of the lives of workers and left no way for them to leave Saudi Arabia.

Saudi Arabia’s budget deficit is estimated at $ 52 billion for 2018. Bonn Salman’s economic program plans to increase government revenue by $ 17.3 billion by 2020 to reduce this massive budget deficit.

Increasing taxes reduces income, especially for foreigners, and encourages them to leave Saudi Arabia. Experts believe that these tax policies will retard instead of making the economy a dynamic and productive country.

This is not all the troubles of Saudi Arabia. The country has further undermined its economic system by attacking Yemen and adopting hasty policies in support of the US command in the region.

In the latest specimen, Donald Trumpt, with the presentation of the “Arab Nato” project, welcomed a new way to bring Saudi Arabia and some other Arab countries into the hands.

In the same vein, Abdulwari Atwan, editor of the Raleigh newspaper, writes in a memorandum on the so-called “NATO-Arab” formation: “I do not know that the new Taliban treaty is a new means of achieving hundreds of billions of GCC-countries’ money, under the pretext of enhancing defense capabilities for” readiness ” To fight Iran “. Countries that can not reject the Tramp claim, and may come out of Washington’s upcoming summit with empty treasuries and heavy loans.

Another strain on the Saudi economy is the purchase of weapons in the world, according to the International Peace Research Institute in Stockholm, according to the International Peace Research Institute in Stockholm, the military budget of Saudi Arabia in 2017 even from Russia, which is the third largest military budget in the world at $ 69.4 billion Has got it, went further. The think tank also introduced Saudi Arabia as the world’s second-largest weapons importer in the world in 2015 and 2016, and noted that such imports have risen by more than 200 percent over the past six years.

 

Twitter

FACEBOOK

Trending