Stakes are High in Saudi Arabia’s Economic Struggles
August 1, 2016
It’s no secret that the Saudi economy is heavily reliant on oil exports. Oil revenues account for around 80% of the government’s budget, and the longer this global oil glut lasts, the more economic pain will be meted out to Saudi society.
Indeed the Saudi authorities have already seen the writing on the wall with regards to how unsustainable their current model is. The recent Vision 2030 plan maps out all the ways the government will diversify away from oil in the years to come. Whether or not the plan can be successfully implemented is another question altogether.
Any instability in the Kingdom stands as a hugely destabilizing force in the MENA region. As covered previously on Geopoliticalmonitor.com, Saudi society comprises of a rather unique social contract between the people, the religious establishment, and the ruling House of Saud.
As such, the country’s economic performance should be closely watched for any signs of a snowballing collapse that could reverberate in the streets.