26.06.2024

Chance of political collapse in saudi arabia

Today, Saudi Arabia is a country on the verge of collapse. According to the UNCTAD World Investment Report published in June 2018, there is a sharp decline in foreign direct investment in the Saudi economy.

During 2017, domestic FDI was only $ 1.4 billion, compared with $ 7.5 billion a year earlier. This was one of the worst periods for the kingdom.

It was in 1973 that King Faisal imposed an embargo on countries supporting Israel during the Fourth Arab-Israeli War. The impact on Western countries turned out to be so enormous that oil prices doubled, and supply on the markets decreased. This created a clear model of Saudi influence.

However, since the embargo was lifted in 1974, this model began to change.

Today, the power of Saudi Arabia has become a fairly nominal concept. The world is losing interest in the economy of Saudi Arabia, the country itself is practically depleting its own state.

Oil Production: Russia and Saudi Arabia

Despite the economic downturn, she launched a civil war in Yemen, exposing her economic fund to a significant depletion of resources. The coalition led by Saudi Arabia is constantly involved in the massacres of Yemeni citizens, and the main economic fund supports the capture of the port of Hodeida. On the other hand, the United States continuously supplies the nation with weapons used in massacres.

According to statistics released by UNCTAD, domestic investment in Saudi Arabia in 2012 amounted to $ 12.2 billion, declining after the outbreak of the war against Yemen in 2015.

In addition, according to the Associated Press, a coalition led by Saudi Arabia is recruiting al-Qaeda members and funding their activities to combat Yemeni Huti. The United States has denied any involvement in operations with al-Qaeda, but its ally, Saudi Arabia, is constantly funding them. Surprisingly, the US goal is causing another controversy.

In a report published by The Independent, the United States put pressure on Saudi Arabia to force it to increase production without paying attention to the country’s depleting natural resources. It is believed that the reason for this is the sanctions against Iran.

In addition, experts have already said that any sharp increase in oil production will be temporary. Moreover, it can be unstable for a long period of time. However, this is precisely what solves the Trump administration problem.

Instead of strengthening its diversification fund, Saudi Arabia invested in diplomatic wars. Accordingly, the funds of the Saudi Arabia Sovereign Wealth Fund fell to $ 250 million. If you take a closer look at the projects signed by Saudi Arabia, it becomes clear that $ 766 billion is needed for the implementation of all projects. Given that the Welfare Fund now has $ 250 billion, even with the Aramco IPO the amount of funds in the fund will not reach the required amount.

Will Saudi Arabia become the next proxy war site? Answer: most likely, yes. The Crown Prince of Saudi Arabia commits one wrong act after another, from financing Al-Qaeda to encouraging mass killings and increasing oil production and, consequently, losing ground in the economy.

Thus, the impulsive decisions made by Saudi Arabia will now return to it and hit the country with an economic collapse. The scale of impending destruction can completely engulf the country, as its citizens continue to hope for a better tomorrow.

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