In 2018, I wrote a short article on Saudi Arabia Vision 2030. At that time, the economic planning was plausible given the supporting global environment. However, the tumbling oil prices, geopolitical instability, slow growth of China and Japan and COVID-19 have shifted the balance.
The article here on Saudi Arabia current challenges is a good read. I reproduced the eight key factors below.
Current Scenario in Saudi Arabia:
1. Falling oil prices.
2. GDP slowdown in China (China is Saudi's largest export market).
3. Cost of war in Yemen.
4. Stimulus packages of COVID-19
5. Multi-trillion Riyal Vision 2030 that has to be scaled down.
6. Cutting down of US shale oil industry because of falling oil prices.
7. Ability and capacity of major global economies (USA, China, Japan etc.) to recover from COVID-19.
8. The impact of all the above factors to Saudi's budget deficit.
Pic. The Kaabah. COVID-19 Lockdown.
Pic. Saudi Arabia Solar Power Project
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