Sample Solution

eforms in order to steer clear.

With regard to Saudi’s domestic oil climate, M.B.S has enacted Vision 2030; a direct attempt to manufacture a complete economic overhaul through ambitious reforms in taxation, the severance of subsidies, and spending. Saudi also plans on creating the world’s largest initial public offering (IPO)through the partial privatization of Saudi Aramco which would bring in an approximated $100 billion of non-oil revenues for Riyadh, however, this plan has been delayed multiple times already (Khan). Because of these reforms and future partial privatization, combined with investments in infrastructure, military, and education, M.B.S is hopeful that this will create an impenetrable division between Saudi Arabia and total oil dependence/Dutch Disease.
One of the most intriguing aspects of Vision 2030 is the blue print for NEOM, a mega-city run on clean renewable energy that will connect Saudi Arabia to Jordan and Egypt (Ellyat). NEOM is intended to be funded through foreign direct investment (which they are aiming to increase through these kinds of attractions) as well as the partial privatization of Saudi Aramco. NEOM aims to be a new and modern technological hub that will embrace the digital era in order to become a major middle-eastern commercial location (Ellyat). The building of NEOM will produce a large amount of jobs for the citizens and create a sustainable environment in which, perhaps, new and old businesses can thrive. However, the question is will the people of Saudi Arabia take advantage of these new job opportunities as well as the growth of their nation? The past says more than likely not.

The government revenue and expenditures of Saudi Arabia rely heavily on oil generated royalties. This is primarily due to the lack of implementation of personal income tax on the citizens of this country. And so, the social contract between the people and government is dominated and dictated by the rentier’ effect; this rentier social contract has a direct negative impact on the power of the people, however, they have silently agreed to its repercussions. With the oil royalties funding the fiscal system, the people of the country acquiesce their government representation for their emancipation from taxation, gift of free education, as well as free health care. As the people and the petro-state rely on economic stability fueled by a steadily depleting resource they remove themselves from any glimpse of change and growth. They become largely removed from government corruption and waste as it has little impact on the