Group items tagged

The Saudis have used their financial clout to ground down enemies in ways big and small, from Iranian American wrestlers facing scripted humiliation in WWE shows to American golf executives being forced to swallow previous bitter condemnations of the kingdom. Saudi Arabia’s golf takeover this year, in which the kingdom coerced the PGA Tour into a planned alliance after effectively winning a game of high-stakes chicken over the fate of one of the world’s most popular sports, struck some analysts as the final dam to break in the sports world’s resistance to Saudi involvement.

Sheikh celebrated by buying a $4.8 million Bugatti before landing on a larger vanity purchase. After a stint as honorary president of an Egyptian soccer club ended with him warring with management, Sheikh poured millions into buying a rival team and moving it to Cairo. Months later, he abandoned Egyptian soccer while lamenting the “headache.”

Sheikh’s management style has embodied Saudi Arabia’s foray into global sports: free-spending, rancorous and hyper-political. He commandeered the lectern at an international chess tournament in Riyadh to rail against “ministate” Qatar, and he ranted that the Saudi soccer team had put in “less than 5 percent effort” during a World Cup loss to Russia. With his penchant for showmanship, it was perhaps inevitable that one of the PIF’s first massive investments would be bringing WWE to Saudi Arabia — and, with it, hired wrestlers acting out the humiliation of what was then a Saudi enemy nation.AdvertisementStory continues below advertisementAt the Greatest Royal Rumble in Riyadh in April 2018, two Iranian American wrestlers, waving the Iranian flag, confronted four young Saudi wrestlers. The scripted comeuppance was swift: The Saudis pummeled the Iranians, brothers Ariya and Shawn Daivari, threw them out of the ring and sent them limping away as the crowd jeered.

Many Westerners ascribe a singular motive to Saudi Arabia, if not the entire Middle East, for its interest in sports: sportswashing. And Saudi Arabia has used sports to market its supposed makeover to the outside world — and to guard its image.

Another key currency in sports (and adjacent Spandex-clad theater) was embedded in that brief anti-Iranian WWE storyline, a forgettable footnote for American viewers. Saudi leaders have attempted to move the country away from religious fundamentalism, or Islamism, to replace it with something more palatable to global commerce: nationalism, partly ginned up by crushing Middle Eastern rivals at a game it came late to.AdvertisementStory continues below advertisementSaudi Arabia, with its geriatric leadership until six years ago, had inadvertently given the United Arab Emirates and Qatar a decades-long head start at investing in sports — but the much larger country has been a bully ever since.

by dissuading potential religious extremism, “The idea is to get the country to look quote-unquote ‘normal.’ ”

“one of those key moments of reputation laundering and propaganda that Mohammed bin Salman needed at that time: an American organization with a billionaire as famous as Vince McMahon appearing in Saudi Arabia and things going on as normal.”

In the years since Khashoggi’s murder, financial leaders returned to doing business with Saudi Arabia, partly revealed when the kingdom released a list of partners in venture capital, including some of the highest-profile firms in the world. (That includes Amazon, founded by Jeff Bezos, who owns The Washington Post. In 2022, the PIF invested roughly $430 million in Amazon.) In sports, reticent executives became increasingly easy marks for a kingdom practiced at bending opponents to its will.

The PIF’s effort to purchase Newcastle United was stalled by Saudi Arabia’s alleged role in one of the world’s largest piracy operations, which for years brazenly stole Qatari content, including that of Premier League games, and beamed it to set-top boxes in Saudi homes.Saudi Arabia denied having a role in the piracy. Investigations by several organizations, from the World Trade Organization to FIFA, found otherwise. The piracy halted just before the PIF was set to complete its purchase of Newcastle.

“The majority of fans don’t care.”

The Saudis — with a diversified portfolio full of other sports — were willing to blow up golf. Pro golf executives, it turns out, were not.

Endeavor, helmed by Ari Emanuel, announced in April a $21 billion deal to merge UFC, its mixed martial arts company, with WWE. Less than five years earlier, Emanuel had returned $400 million to the Saudis so as not to have to partner with them in the wake of Khashoggi’s murder. But Endeavor and its related companies had recently done business with the kingdom again — including Endeavor’s IMG negotiating media rights for the Saudi Pro League. Under TKO, the company created in the merger with Emanuel as CEO, WWE plans to continue its Saudi shows. And UFC recently announced it would hold its first event in Saudi Arabia next year.

Allegations of disloyalty and noncompliance spread quickly. Such allegations especially affected Shia citizens who had failed to come forward about recent travel to Iran and who made up the kingdom’s first cases. But state policies to restrain sectarianism, such as pardons for citizens who disclose their visits to Iran and controls on information from the quarantined Shia city of Qatif, have tamped down some of the accusations.

an official statement accused Iran of “direct responsibility” for the spread of the virus, while commentators in the media and online also accused Saudi Arabia’s foes, Qatar and Turkey, of deliberately mismanaging the crisis

exceptional actions taken to mitigate the pandemic’s impact on Saudi citizens—from facilitating repatriation of those stuck abroad to providing free healthcare, covering 60 percent of private-sector salaries, and expanding digital services—have mobilized public support. These policies are a reminder to citizens that being Saudi means having a state that looks after its sons and daughters

The paternalistic and humane framing of the current king’s decisions treats the millions of foreigners living in the country as part of Saudi society and pushes back against a growing hostility toward expatriates and naturalized citizens living in the kingdom. While the crisis is furthering the Saudi labor market’s naturalization, the kingdom needs the compliance of its more than 10 million foreigners—especially the foreign majority of its doctors—to control the pandemic.

The religious establishment’s systematic support for these restrictions was essential not only to encourage obedience, but also to counter arguments that the crisis is God’s response to the excesses of social liberalization led by the crown prince. Even the largely tamed religious police reemerged with its own campaign to support state decisions. However, a prominent pro-MBS imam who called for the release of prisoners amid a COVID-10 outbreak was suspended, providing a reality check for the establishment.

Building on its unique expertise in managing the annual pilgrimage, Saudi Arabia’s COVID-19 strategy has reassured the Saudi public and the World Health Organization (WHO). Riyadh has jumped at this chance to repair its international image. It is showing off the growth of its public health expertise since its mismanagement of the MERS coronavirus outbreak in 2012. It donated $10 million to the WHO, delivered humanitarian aid to China, and is preparing potential aid to Palestinians. As current president of the G20, Saudi Arabia organized a virtual summit on March 20 to coordinate on the pandemic.

The economic impact of the pandemic is compounding a self-inflicted drop in oil revenues, lost revenue from suspended pilgrimages, and uncertainty within the royal family. Managing heightened public expectations of the leadership will be crucial in maintaining public support for MBS when the pandemic subsides. The crisis is also a test for the progress made on Saudi Vision 2030, especially its programs to transform public services, reduce unemployment, and diversify the economy away from oil.

the Houthis in Yemen have intensified military operations over the last month, targeting the Saudi capital of Riyadh on March 28. Furthermore, Iranian-backed militias in Iraq are escalating regional tensions with the United States

According to Bloomberg, Saudi officials project the Line will cost around $100-$200 billion of the $500 billion planned to be spent on Neom and will have a population of 1 million with 380,000 jobs by the year 2030. It will have one of the biggest airports in the world for some reason, which seems like a strange addition to a supposedly climate-friendly city.

The site also makes numerous hand wavy and vaguely menacing claims, including that “all businesses and communities” will have “over 90%” of their data processed by AI and robots:

Don’t pay attention to Saudi war crimes in Yemen, the prince’s brutal crackdowns on dissent, the hit squad that tortured journalist Jamal Khashoggi to death, and the other habitual human rights abuses that allow the Saudi monarchy to remain in power. Also, ignore that obstacles facing Neom include budgetary constraints, the forced eviction of tens of thousands of existing residents such as the Huwaitat tribe, coronavirus and oil shock, investor flight over human rights concerns, and the lingering questions of whether the whole project is a distraction from pressing domestic issues and/or a mirage conjured up by consulting firms pandering to the crown prince’s ego and hungry for lucrative fees. Nevermind you that there are numerous ways we could ensure the cities people already live in are prepared for climate change rather than blowing billions of dollars on a vanity project.

Saudi leaders likely hope that Sultan Haitham will be more amenable to a Saudi-led Gulf, and without U.S. support, Oman may feel pressure to acquiesce or face potential repercussions. Omani officials have privately expressed concerns that Oman could be the next target of a Saudi- and Emirati-led blockade

Despite precipitating the world’s most urgent humanitarian crisis in Yemen, Saudi Arabia has used its military presence there to declare its intention to build a pipeline through the Mahra region and construct an oil port on the Yemeni coast. Saudi Arabia currently ships oil through the Strait of Hormuz and the Bab el-Mandeb strait, whereas the proposed pipeline would allow direct access to the Indian Ocean.

Mahra has close links to the adjacent Dhofar region of Oman, which has long viewed the province as an informal buffer from the instability in other parts of Yemen. Sultan Qaboos offered aid as well as dual citizenship to residents of Mahra as a means of eliminating the potential for another conflict resembling the Dhofar War of 1963-1976, which drew cross-border support from the People’s Democratic Republic of Yemen operating from Mahra into Dhofar

Inhabitants of Mahra have expressed frustration with the presence of both the Saudis and Emiratis, given that these kingdoms’ alleged foes—the Houthis as well as al Qaeda in the Arabian Peninsula—are not present in Mahra

The UAE has taken control of the Yemeni island of Socotra, building a military base in a unique ecosystem nominally protected by UNESCO. The UAE is also building bases in Eritrea and Somaliland as part of a plan to develop a “string of ports” that will allow it to project power and escape possible pressure from Iran in the Persian Gulf.

Other Emirati ambitions include the Musandam Peninsula, an Omani enclave that forms the narrowest point in the Strait of Hormuz. The inhabitants of the peninsula have close ties to the UAE, as Musandam connects geographically to the emirates of Ras al-Khaimah and Fujairah, rather than Oman. Oman’s control of the strategic chokepoint reflects the sultanate’s history as an empire whose territory once stretched from southern Pakistan to Zanzibar. 

The border between Oman and the UAE was only formally demarcated in 2008, but Omanis see a circle of potential threats arising from Emirati activity in or possible designs on Musandam, Mahra, and Socotra.

the UAE may feel that Oman’s new sultan may be more receptive to alignment with Emirati objectives than his predecessor

Oman has failed to significantly diversify its economy

As in many oil-dependent economies, unemployment is high, especially among young people

During the popular uprising of 2011, which brought thousands of Omanis to the street for the first time, the government used its nest egg to pay for a massive expansion of the government payroll.

there are no available resources to try to finance a transition away from oil, and the low price of oil has further impeded the government’s efforts to meet its obligations

These reforms are not targeting the root causes of restrictions on women, but are selected to portray certain types of reforms that can be promoted in international media

selected reforms aimed at certain purposes, but not necessarily towards developing human capital or investing in people, or women, at large

He doesn’t want any competition, any counter-opinions, any criticism. So he’s almost shut down everybody, and he’s moving ahead with his reform. When he arrested intellectuals last September, it was meant to silence everybody. The purge on corruption was planned to make everyone dependent on his mercy. If he succeeds, he will succeed alone. If not, maybe he will include the Saudi people in his reforms. I wish he could do that today, but right now he has all the power and the international community is not pressuring him on human rights.

He’s raising expectations to riskily high levels. If in two, three, five years nothing significant has really changed for the prospects of individual people looking to get ahead, they may begin to question whether Mohammad bin Salman is really the revolutionary he claims to be. We’ve seen a lot of his supporters here in Washington buying into that revolutionary, Arab Spring-like figure-of-change image, embracing his top-down approach without pausing to think about the extent to which there is a bottom-up counterpart

meeting with President Donald Trump on Tuesday was punctuated by a particularly uncomfortable exchange in which Trump went into detail about the $12.5 billion in new U.S. weapons the prince agreed to buy and then said to the prince, “that’s peanuts for you.” Ulrichsen suggested that the scene would not play well in Saudi Arabia: I think if I were watching yesterday’s press conference with Donald Trump, I would have been quite dismayed to have seen a U.S. president treat his Saudi counterpart as if he were just a source of opportunities for the U.S. Some of the president’s tenor and demeanor was quite remarkable. Khashoggi agreed that Trump’s performance was not helpful for the crown prince: President Trump is wrong when he says that money is “peanuts” to us. Saudi Arabia has a serious poverty problem—money is not “peanuts” to us. To spend billions of dollars on military equipment is a serious thing. Today the Saudi Shura Council is talking about 35 or 40 percent unemployment—the official figure is 12 percent. So as much as Donald Trump is concerned about providing jobs for Americans, Mohammad bin Salman should be concerned about providing jobs for Saudis.

Leaks reveal insiders’ growing uneasiness, which points to the elephant-in-the-room question: Will MBS’ grandiose venture bankrupt the kingdom?

Saudi private investors will also be encouraged to pitch in during a potential public listing of Neom in 2024. That raises questions about how consensual this private investment will be. Indeed, Saudi Arabia reportedly “bullied” several of the kingdom’s wealthiest families to become cornerstone investors out of “patriotic duty” in the IPO of Saudi energy firm Aramco in 2019.

a large chunk of Saudi money carefully set aside for decades to fund the transition to a post-oil era will pay for Neom's astronomical price tag. A bet on an unproven vision

“Infrastructure spending is like doing lines of cocaine; you have to do bigger and bigger and bigger lines just to feel high,”

Neom’s initial burst of economic activity, if unsustainable at a similar pace, would simply be "stealing" future economic benefits to create an illusion of growth right now

perhaps the motive is not sustainable growth at all, but creating what Pettis calls a "pyramid effect." This would be an attempt to copy monarchs of ancient Egypt who redistributed wealth to the population through jobs – paid laborers built Egyptian pyramids, not slaves. Although Saudi Arabia’s oil wealth is already redistributed to ordinary Saudis through public-sector jobs and subsidies, a large tranche is retained and stored in its sovereign wealth funds and U.S. Treasuries. In theory, flushing Saudi citizens with cash would stimulate the local non-oil economy. But in practice, the pyramid effect is likely to first and foremost cause economic leakages, as the kingdom imports most of what it consumes locally, including labor, despite the “Saudification” of the labor market being one of Vision 2030’s key priorities. Migrant workers account for about 77 percent of private sector jobs. At Neom, highly paid Western consultants are toiling to match MBS’ demands, and Asian low-income workers are building it, remitting Saudi money home.

Riyadh sweetened the project’s launch party with a flurry of social reforms, such as lifting the ban on women driving. (Saudi Arabia was the last country in the world to lift this kind of ban, and it didn’t do so as a principled stand on behalf of women’s rights.) The idea was not only creating a buzz among investors and the global public, but whipping up aspirational momentum among Saudis.

60 skyscrapers that were built in Riyadh’s financial center are still standing largely empty.

MBS, high on his visionary self-branding and his concentration of power, may have to pay the costs of bankruptcy – whether by admitting full responsibility or via a renewed deployment of decidedly imperious and despotic tactics to crush dissent. The latter path is, of course, what the late Shah of Iran chose, with notorious results.

since US President Joe Biden's visit to Saudi Arabia in July, there had been a "more repressive approach by the Saudi state security and judicial authorities against individuals exercising their right to freedom of speech". 

Abdul Rahim al-Howeiti, a 43-year-old Tabuk resident who was shot dead by Saudi special forces in April 2020 after protesting the government's eviction orders

Since December, Howeitat tribespeople have reported the Saudi authorities' campaign to drive them from their land has escalated. New measures include cutting water and electricity supplies, and deploying surveillance drones above residences

among 150 Howeitat who have been imprisoned over their resistance to the Neom project

little has been constructed, but large sums have been paid to consultants and increasingly outlandish plans revealed. Yet Saudi authorities have sought to clear areas along 170km of Tabuk province of its residents, many of whom belong to the Howeitat tribe.

drones are being flown regularly over Tabuk province, and that they believe their mobile phone and social media accounts are closely monitored.

water and electricity has been cut off from an estimated 15,000 people in an attempt to force them from the region

The new Saudi megacity - which organisers claim will be 33 times the size of New York City - is planned to include a 170km straight line city, an eight-sided city that floats on water, and a ski resort with a folded vertical village, among other grandiose and architecturally challenging projects.

There are also fears that the development, with its large-scale building work and dredging activities, will threaten irreparable damage to what is one of the world’s most pristine but vulnerable ecological regions.

with climate change and rising sea levels, there is a very real possibility that the majority of the island nation’s land area will be underwater by the end of the century

Abdulla Yameen, the current president – who has strongly denied allegations about government corruption made recently by the Qatar-based Al-Jazeera network - has stressed the need for economic growth and sees the giant Saudi investment as key to future prosperity.“We do not need cabinet meetings under water,” says the government. “We need development.”

The opposition says part of the rational behind the multi-billion dollar Saudi development could be a plan by Riyadh to establish a staging post and special economic zone, complete with port facilities, for oil and gas exports to Asia, particularly to China.

Islam in the Maldives has traditionally blended elements of Sufism and other religions; in recent years, a stricter form of Saudi-style "Wahhabism" has predominated. There are concerns that a number of people from the Maldives are believed to have joined the Islamic State (IS) group in Syria and Iraq.

The Saudis have pledged to build what they describe as 10 "world class" mosques in the archipelago and have donated $100,000 for scholarships to study in Saudi Arabia. 

In early 2016, the government in Male cut diplomat ties with Iran

The growing ties between Riyadh and Male have been causing some concern in the region, particularly in India.Last year the Binladin Group, the troubled Saudi construction conglomerate, was awarded – for an undisclosed sum – a contract to build a new international airport in the Maldives. A previous agreement with an Indian company to build the airport was terminated; it is likely the Maldives will have to pay millions of dollars in compensation. 

Analysts say the Asia trip is about extending Saudi influence and diversifying the Kingdom’s economy away from oil and gas and investing in the region.

“We did not own up to it after 9/11 because we feared you would abandon or treat us as the enemy,” the Saudi senior official conceded. “And we were in denial.”

as the Saudis described it to me, this new approach to grappling with their past is part of the leadership’s effort to make a new future for their country, including a broad-based economic reform program

The new leadership, like their predecessors, blames Iran for regional instability and the many conflicts going on.

it is an open question as to whether the Saudi people have been sufficiently prepared at all relevant levels in terms of education and skills to compete in the world economy, as they will need to do in a modernized economy. If not, social tensions and unrest may arise among those who are not prepared to compete.

For many years, I was accustomed to Saudi officials being vague and ambiguous. Now, our interlocutors were straightforward and business-like in discussing their past and their future plans. In past decades, my impression had been that the Saudis did not work hard. Now a team of highly educated, young ministers works 16- to 18-hour days on refining and implementing a plan to transform the country. The plan is the brainchild of Mohammad bin Salman and focuses both on domestic and regional fronts. Salman and his ministers exude commitment and energy.

Riyadh views modernization as the vehicle through which the Saudi state, at long last, can confront and defeat extremism, foster a dynamic private sector and master the looming economic challenges

Their Vision 2030 and National Transformation Program 2020 focus on shrinking the country's enormous bureaucracy, reducing and ultimately removing subsidies, expanding the private sector including attracting investment from abroad by becoming more transparent and accountable and by removing red tape.

Israel and Saudi Arabia share a similar threat perception regarding Iran and ISIL, and that old hostility need not preclude greater cooperation between the two states going forward

On some levels, the prospects for planned reforms are more promising in Saudi Arabia than they are in most other parts of the Middle East. Saudi Arabia has oil reserves and is not roiled in conflict: two important advantages

if the reform effort does work, Saudi Arabia is poised to become more powerful than before, enabling it to play a bigger role in regional dynamics including in balancing Iran and perhaps negotiating about ending the civil wars in the region. A true change in Saudi Arabia’s policy of supporting Islamist extremists would be a turning point in the effort to defeat them

despite extensive relationships with the US intelligence community as bin Nayef’s aide, two sources informed on the matter said he did not feel safe in the US with Donald Trump in power. Instead, he went to Canada where officials secured his refuge in November 2017 and, a month later, several members of his family.

Jabri preferred Canada over the US not necessarily because of any specific security concerns, but because it may have been easier to bring his family to join him

Revelations of the Canadian government’s assistance to Jabri and his family will raise questions about the diplomatic row that broke out between Ottawa and Riyadh in August 2018. Until now, the spat appeared to the wider public to have started after Canada’s embassy in Riyadh tweeted in Arabic, calling for the release of rights activists, although experts say there were frustrations already brewing in Riyadh.

Within 48 hours of the tweets, Saudi Arabia withdrew its envoy, expelled the Canadian ambassador to the kingdom and froze all new business and investment transactions, leaving seasoned observers dumbfounded.

Sources informed about Jabri’s refuge in Canada say they believe the harbouring of the former official better explains why the row escalated so quickly.

Aside from his blog post, Jabri has been off the public radar since he left the kingdom although several Saudi and Gulf sources told MEE that they had heard that he was in Canada. “He’s kept out of the public eye,” said a Saudi dissident, who spoke on condition of anonymity. “A few people spotted him by chance, but not because he approached opposition people.”

Trump has come under fire for downplaying the role of Mohammed bin Salman in the killing of Saudi journalist Jamal Khashoggi in November 2018 even though the CIA concluded that the crown prince ordered the operation.

Saudi dissidents, both in the US and in other countries, have told MEE that Trump’s response to the killing, paired with the administration’s close ties to the kingdom, has left them anxious about their security in the US.

earlier this year, Abdulrahman al-Mutairi, a young Saudi living in California who has spoken out against the crown prince, told the Daily Beast and the LA Times that the FBI had thwarted an attempt by the Saudi government to kidnap him on US soil.

"That Saudis wouldn't feel safe abroad, 100 percent I agree. Where I would be very sceptical is that it's because of the Trump administration. I think it's because of MBS that Saudis shouldn’t feel safe abroad."  

the prince is as close to a pariah as a senior member of the royal family has ever been in the 75 years of the Saudi-American alliance

broad, bipartisan support in Washington for punitive actions against Riyadh

MBS’s dependence on Trump — and the White House veto — to override this antagonism made him highly vulnerable to presidential strong-arm tactics.

The prince is now in a bind. He desperately needs to rebuild bridges with Congress, but that will be harder now that he has injured U.S. oil interests. Nor can he easily submit to pressure from American lawmakers on other issues without losing face at home and in the Arab world. 

The timing of his humiliation by Trump is especially unpropitious: The twin blows of the oil war and the coronavirus pandemic have greatly damaged the Saudi economy and undermined his ambitious reform agenda at home. His cherished plan to build a futuristic megacity on the Red Sea coast is facing unexpected opposition. Much effort and cost will be required to extricate Saudi Arabia from the Yemeni quagmire with a semblance of dignity.

Despite Mohammed bin Salman's ambitions, which include overhauling the kingdom's economy away from its reliance on oil, the prince has faced criticism for the Saudi-led war in Yemen, which he oversees as defence minister. The war, launched more than two years ago, has failed to dislodge Iranian-allied rebels known as Houthis from the capital, Sanaa, and has had devastating effects on the impoverished country. Rights groups say Saudi forces have killed scores of civilians and have called on the United States, as well as the UK and France, to halt the sale of weapons to Saudi Arabia that could be used in the Yemen war.

Although I was the target of this latest assault — no doubt because I regularly present critical reporting about Saudi Arabia and the UAE — the message to journalists across the Middle East is very clear: Don’t criticize the crown princes.

There has been a disturbing rise in gender-related harassment and threats against female public figures. The movement for women’s rights in Saudi Arabia has terrified the government, which has insisted on doling out reforms on its own terms while detaining the female activists behind the movement. Loujain al-Hathloul, the most prominent of the Saudi women campaigners, and several others remain behind bars.

Last Friday, a Turkish court began hearings on Post contributing columnist Jamal Khashoggi’s murder — a stark reminder that justice has still not been served two years on. Jamal himself once warned me to ignore and block these Twitter accounts. Even though the man widely believed to be responsible for Jamal’s murder may never be held to account, we must not let him and those who work for him imperil one of the fundamental pillars of a free society — a free press.

Twitter and other social media sites must take action to protect journalists such as myself and ensure that its platform is no longer misused by authoritarian regimes.

New policies and programs are announced constantly, while the delivery capacity of the sluggish Saudi bureaucracy continues to lag. Below the upper echelons, the Saudi state remains the deeply fragmented, bloated, and slow-moving machine that I described in my 2010 book. The government seems to have no clear strategy for reforming this bureaucracy

While space for political opposition arguably has narrowed, women will soon be allowed to drive and the religious police force that once harassed them has been almost entirely neutered. By relaxing religious controls over the public sphere, the crown prince is seeking to attract more foreign investment and facilitate diversification into tourism and entertainment

Saudi Arabia has tackled fiscal reforms more vigorously than most local and international observers expected, introducing unprecedented tax and energy price measures, including the introduction of a 5 percent value added tax, new levies on foreign workers, and increases in electricity and transport fuel prices. The government is now experimenting with new non-oil sectors with an increased sense of urgency, including information technology and defense manufacturing.

As limits on government employment kick in, young Saudis will increasingly have no choice but to seek private jobs. But they will face tough competition on the private labor market where employers have become accustomed to recruiting low-wage workers from poorer Arab and Asian countries

public sector employment remains the key means of providing income to Saudi nationals. Cheap foreign labor dominates private sector employment, thereby keeping consumer inflation at bay and business owners happy. Citizens, however, are parked in the overstaffed public sector. Out of every three jobs held by Saudis, roughly two are in government. The average ratio around the world is one in five. Public sector wages account for almost half of total government spending, among the highest shares in the world

Local economic advisors fear that the majority of private petrochemicals firms — the most developed part of Saudi industry — would lose money if prices of natural gas, their main input, increase to American levels.

Saudi wage demands will have to drop further if private job creation is to substitute for the erstwhile government employment guarantee. For the time being, private job creation has stalled as the government has pursued moderate austerity since 2015 in response to deficits and falling oil prices

The government has also underestimated how dependent private businesses are on state spending. The share of state spending in the non-oil economy is extremely high compared to other economies. Historically, almost all private sector growth has resulted from increases in public spending

As long as oil prices remain below $70 per barrel, the goal of a balanced budget will cause pain for businesses and limit private job creation. This will pose a major political challenge at a time when an estimated 200,000 Saudis are entering the labor market every year. More than 60 percent of the population is under 30, which means that the citizen labor force will grow rapidly for at least the next two decades.

It would be far more prudent to gently prepare citizens and businesses for a difficult and protracted adjustment period and to focus on a smaller number of priorities

The key structural challenge to non-oil growth is the way the Saudi government currently shares its wealth, most notably through mass public employment — an extremely expensive policy that bloats the bureaucracy, distorts labor markets, and is increasingly inequitable in an era when government jobs can no longer be guaranteed to all citizens. A stagnating economic pie that might even shrink in the coming years must be shared more equitably.

A basic income would not only guarantee a basic livelihood for all citizens, but also serve as a grand political gesture that could justify difficult public sector reforms. A universal wealth-sharing scheme would make it easier to freeze government hiring and send a clear signal that, from now on, Saudis need to seek and acquire the skills for private employment and entrepreneurship. The government could supplement this scheme by charging fees to firms that employ foreigners while subsidizing wages for citizens to fully close the wage gap between the two.

Focusing on such fundamentals might be less exciting than building new cities in the desert or launching the world’s largest-ever IPO — but they are more important for the kingdom’s economic future. No country as dependent on petroleum as Saudi Arabia has ever effectively diversified away from oil

in western economies, low-cost migrant workers are largely unavailable. When the economy booms, wages rise, forcing managers to think judiciously about hiring. During a recession, employment protections for citizens mean that redundancies are complicated and sometimes impossible. Consequently, managers focus a lot more on maximizing worker productivity through investments and employee training; and on developing new technologies that are commercially valuable.

the Gulf countries rank below every region in the world in terms of R&D spending as a percentage of GDP, and the limited spending is almost exclusively funded by the government, and occurs in governmental organizations, such as oil giants Aramco and ADNOC.

the fundamental error made by proponents of restrictions on migrant workers. Rather than making the case I made above, they make the erroneous claim that if Saudi Arabia bans migrant workers, Saudi businesses will hire nationals in their stead. We know that this is false empirically because all of the Gulf countries have tried this and it has failed. The failure was also expected because national and migrant workers are imperfect substitutes. It is tempting to attribute the attractiveness of migrant workers merely to their willingness to work for a lower wage, or to domestic businesses “lacking patriotism”; but this belies the genuine superiority of migrant workers in many relevant domains, including work ethic, willingness to perform jobs that locals are averse to (waiting tables, collecting refuse, etc.), and their possession of skills that nationals often lack.

Saudis are too often educated in the areas that help one get a cushy public sector job, and not in those that serve the private sector needs. This is most starkly seen in the limited success of vocational training, especially when compared to advanced economies such as Germany or Switzerland.

for crude restrictions on the employment of migrant workers to create jobs for Saudi citizens, they must be accompanied by upgrades to the human capital of Saudis that attend to the needs of the private sector

while the new system makes hiring foreign workers “instant”, the results of these comprehensive reforms will be anything but “instant”, requiring many years to bear fruit

analysts expect oil prices to remain below $40 for the foreseeable future, while the national budget balance requires $80-85 a barrel. The future of the oil market is getting worse, since the June contracts collapsed by more than 45 percent.

oil war is urging the Saudi government to limit or, even, cancel its excess spending and yet, the government chooses to increase public spending to support its citizens and residences.

the coronavirus might serve as a vehicle of legitimacy for the absolute monarchy that takes responsibility for its citizens as democracies are struggling to help their own.

on 8 October 2019, Shehab responded to a tweet by a verified Saudi account that reports on developments in the kingdom’s infrastructure projects. When the account tweeted about the launch of a new network of buses, she tweeted the word “finally!”.

On official Saudi websites, Kollona Amn – which also has a Twitter account – is described as an app that allows citizens and expatriates to submit security and criminal reports related to personal life attacks, threats, impersonation, extortion, penetration of social media accounts, defamation, fraud and other criminal offences and security reports.

Her alleged crimes including using a website to “cause public unrest” and “assisting those who seek to cause public unrest and destabilise civil and national security by following their Twitter accounts” and by retweeting their tweets.

“It is very concerning because people who post something cannot predict the risk or who is going to report them, and who is going to go back and search their feed for posts that don’t align with government propaganda,”

Recalling her own experience in Syria, Aljizawi described the phenomenon of citizens being unable to trust their own neighbours.“Sometimes people find themselves in trouble. They need a promotion or need to prove their loyalty to the state, so they do something like this. It’s enough to just take a screenshot and report it,”

in the hands of a dictatorship targeting human rights defenders, technology transforms into a terrifying tool which fast tracks repression

Shehab would regularly tweet to support the rights of others but believed it went unnoticed because she did not have many Twitter followers.“She [would] always stand with all human rights in Saudi or outside of Saudi

Shehab, who has been studying in the UK since 2017, was not especially critical of the government and was a supporter of Vision 2030, Prince Mohammed’s plan to diversify the Saudi economy away from oil and towards services such as health and tourism.

the nuclear waste dump and military base would be on the side of the channel that touches the Qatari border and would effectively constitute a Saudi outpost on the newly created island.

The $750 million project would have the dump ready for when Saudi Arabia inaugurates the first two of its 16 planned nuclear reactors in 2027. Saudi Arabia is reviewing proposals to build the reactors from US, Chinese, French, South Korean contractors and expects to award the projects in December.

Qatar’s more liberal Wahhabism of the sea contrasts starkly with the Wahhabism of the land that Prince Mohammed is seeking to reform. The crown prince made waves last year by lifting a ban on women’s driving, granting women the right to attend male sporting events in stadiums, and introducing modern forms of entertainment like, music, cinema and theatre – all long-standing fixtures of Qatari social life and of the ability to reform while maintaining autocratic rule.

A traditional Gulf state and a Wahhabi state to boot, Qatari conservatism was everything but a mirror image of Saudi Arabia’s long-standing puritan way of life. Qatar did not have a powerful religious establishment like the one in Saudi Arabia that Prince Mohammed has recently whipped into subservience, nor did it implement absolute gender segregation. Non-Muslims can practice their faith in their own houses of worship and were exempted from bans on alcohol and pork. Qatar became a sponsor of the arts and hosted the controversial state-owned Al Jazeera television network that revolutionized the region’s controlled media landscape and became one of the world’s foremost global English-language broadcasters.

Qatari conservatism is likely what Prince Mohammed would like to achieve even if that is something he is unlikely to acknowledge

“I consider myself a good Wahhabi and can still be modern, understanding Islam in an open way. We take into account the changes in the world,” Abdelhameed Al Ansari, the then dean of Qatar University’s College of Sharia, a leader of the paradigm shift, told The Wall Street Journal in 2002.

if built, the channel would suggest that geopolitical supremacy has replaced ultra-conservative, supremacist religious doctrine as a driver of the king-in-waiting’s policy

In April, activist Abdul Rahim Al Huwaiti was executed by Saudi special forces following his vocal opposition to the construction of NEOM

The predominantly Shi’ite town, once home to around 30,000 residents, was bulldozed to make way for a commercial hub adorned with expensive plazas and shopping outlets, as part of Saudi Arabia’s dual mission of economic development and repression of religious and racial minorities.

migrant labourers, who comprise approximately 80% of the private sector workforce, are subject to excessive control by bosses, who can implement measures such as delays in wages, forced labour and the confiscation of passports. 

Mohammed bin Salman claims that it will be the world’s “most liveable city by far”, as high-speed rail capacity will reportedly make cars obsolete, renewable energy will power its infrastructure, and 95% of land will be conserved for environmental protection.  Yet, Saudi Arabia has previously failed to implement its grandiose, ill-substantiated environmental pledges.

Almadi was charged with harboring a terrorist ideology, trying to destabilize the kingdom, as well as supporting and funding terrorism.

Almadi has been tortured in prison, forced to live in squalor and confined with actual terrorists — all while his family was threatened by the Saudi government that they would lose everything if they didn’t keep quiet

Nobody from the U.S. Embassy in Riyadh visited Almadi until May, six months after his arrest. At that meeting, Almadi declined to ask the U.S. government to intervene. Ibrahim said that Saudi jailers threaten to torture prisoners who involve foreign governments in their cases. In a second consular meeting in August, Almadi did ask for the State Department’s assistance in his case. He was then tortured, Ibrahim said.