Kingdom’s economy pays huge cost for obscurity

Observers unanimously agree that the Kingdom’s economy, which is facing a continuous decline, is paying the heavy cost of obscurity, which has been going on for more than a year, due to the reckless policies of Crown Prince Mohammed bin Salman.

The Kingdom’s economy finds itself losing a lot, just as many have lost since the crisis of the murder of journalist Jamal Khashoggi, and before the adventure of the Yemen war and the beginning of the Gulf crisis through the siege of the State of Qatar.

This is because the emigration of funds abroad will increase if the state of uncertainty persists too much, and with it the local money escapes before the foreign, and the country will lose billions of dollars that flow into it in the form of foreign investments, whether directly or indirectly, and the stock market will suffer setbacks even if it is supported and supported with money Governmental, because anxiety and anticipation do not create economic stability.

The Kingdom has been living for many months, a state of political ambiguity or uncertainty, which countries usually experience when they go through political, security, social, or economic turmoil and crises.

This situation overwhelmed the Kingdom after the disclosure of the assassination of Khashoggi at his country’s consulate in Istanbul in early October 2018, and intensified after the CIA and US lawmakers confirmed that it was Wali bin Salman who ordered the killing of Khashoggi.

This state of ambiguity or uncertainty is the most dangerous for the economy, countries and societies, because dangerous indicators are accompanied by the most prominent of them, the withdrawal of foreign investments from the state, the smuggling of businessmen their money, the postponement of the approval of legislations and laws, the postponement of important economic and financial decisions by governments, financial institutions and investors separately Either, postponing the implementation of major projects, especially medium and long-term.

Simply put, all important decisions are left pending. Everyone does not know what tomorrow will bear of surprises inside the kingdom, when the Khashoggi case will be closed, and what scenarios will be applied if the existing crisis and its effects on the countries of the region are addressed.

In light of the political uncertainty in the Kingdom, the domestic investor is asking before the foreigner: What will happen tomorrow within Saudi political circles and what if American lawmakers threaten to harm Saudi investments in American banks and markets, or implement the GASTA law and allow the families of the September 11 victims to sue the Saudi government before the courts As for the famous smoking cases, will the American government seek compensation in the billions of dollars? Will the US Congress expand the implementation of the Magnitsky International Law?

Then what about the future of the Vision 2030 launched by Mohammed bin Salman in 2016, one of the most prominent features of which was a diversification of the economy, the abandonment of oil as the only source of public revenues, the increase in non-oil exports, and the speedy sale of state facilities, bodies and companies?

What about the “NEOM” project located on the Red Sea and the Gulf of Aqaba with a total area of 26,500 square kilometers, which was considered by Muhammad bin Salman as the beginning of the Kingdom’s transition to the future and the allocation of investments worth 500 billion dollars? What is the position of foreign investors who announced the injection of billions into this huge investment and tourism project.

What about entertainment projects and establishing cinemas and theaters in the Kingdom? What about the new foreign investment to be pumped into the entertainment sector, which Mohammed bin Salman described as promising and attractive?

Dozens of questions that the domestic investor is waiting for before the foreigner to answer them before making any new investment decision in the Kingdom.

In the face of this state of political ambiguity, societies cannot evolve and progress. Rather, the economic and investment decision is stuck in them and perhaps paralysis.