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 their pockets, in turn propagating their own moral hazard. The citizens attend school, yet, recently, they have graduated and remained unemployed for an extended period of time. If the available jobs on the market are not offered by the government, individuals find little to no incentive to take them. Instead, imported foreign workers from surrounding countries find themselves filling these jobs and sending the money back to their families. Therefore, the building of NEOM will more than likely succeed if the government strategically allocates money and diversifies their investments, however, the citizens of Saudi Arabia may contribute very little to this. Why work hard for your riyal when your father who humbly worked before you can give it to you with ease and the imported foreign workforce can sacrifice their energy and lives for their families and build the technological hub of the country’s dreams?

Saudi Arabia may plan to avoid downfall by slowing its dependence on oil with the reforms of Vision 2030, but it does not mean the country will stop doing whatever it takes to have its way… and its oil; Saudi Arabia will continue to attempt use its political and oil leverage to shirk off the part they have played in th