Today Saudi Arabia is a country on the verge of collapse. According to the world investment Report of UNCTAD published in June 2018, has seen a dramatic decline of foreign direct investment in the economy of Saudi Arabia.
For 2017, the domestic FDI amounted to only $1.4 billion compared with $7.5 billion the year before. It was one of the worst periods for the Kingdom.
In 1973 king Faisal imposed an embargo for countries that supported Israel during the fourth Arab-Israeli war. The impact on Western countries was so enormous that the price of oil has doubled, and the supply in the markets has decreased. This has created a clear model of the influence of Saudi Arabia.
However, since the embargo was lifted in 1974, this model began to change. Today, the government of Saudi Arabia has become quite nominal by the concept. The world is losing interest in the economy of Saudi Arabia, the country itself is almost starves his own state.
Oil production: Russia and Saudi Arabia
Despite the economic decline, she began a civil war in Yemen, exposing your economic Fund to significant depletion of resources. The coalition, led by Saudi Arabia, is constantly involved in the massacre of the Yemeni citizens and the basic Foundation of the economy supports the capture of the port of Hodeidah. On the other hand, the US continuously supply the nation’s guns used in mass murders.
According to statistics released by UNCTAD, domestic investment in Saudi Arabia in 2012 totaled $12.2 billion, reduced after the war against Yemen in 2015
Furthermore, according to the Associated Press the coalition, led by Saudi Arabia, is recruiting members of “al-Qaeda” and Finance their activities to fight the Yemeni Houthis. The United States denied its involvement in the operations “al-Qaeda”, but their ally, Saudi Arabia, permanently Finance them. Surprisingly, the goal of the US causing another controversy.
In a report published by The Independent, the US put pressure on Saudi Arabia to force her to increase production, not paying attention to the diminishing natural resources of this country. It is believed that the reason for this is sanctions against Iran.
In addition, experts have already said that any sharp increase in oil production will be temporary in nature. Moreover, it may not be sustainable over a long period of time. However, and this solves the problem of the administration of the trump.
Instead of strengthening the diversification of Saudi Arabia has invested in the diplomatic war. Accordingly, the amount of funds sovereign wealth Fund of Saudi Arabia fell to $250 million If you take a closer look at the projects signed in Saudi Arabia, it becomes clear that the implementation of all projects must be $766 billion, Given that the welfare Fund is now $250 billion, even if IPO Aramco, the amount of funds in the Fund reaches the required amount.
Will Saudi Arabia following the site for a proxy war? Answer: most likely, Yes. The crown Prince of Saudi Arabia does one wrong thing after another, starting with the funding of “al-Qaeda” to promote mass murder and increasing the volume of oil production and, consequently, the loss of positions in the economy.
Thus, impulsive decisions taken by Saudi Arabia, now she’s back and will hit the country’s economic collapse. The magnitude of destruction can fully absorb the country as its citizens continue to hope for a better tomorrow.
