Is Saudi Arabia still burning cash?
Is Saudi Arabia still burning cash?
Elijah Gutierrez
Joseph Thomas
Yes
Gotta build all those skyscrapers with lavish interior design.
Levi Martinez
one can hope so
fuck them
Brayden Wilson
Those are BS numbers. It costs less than $10 for Saudi Arabia to produce a barrel of oil.
See: marketrealist.com
Ryder Nguyen
>Those are BS numbers. It costs less than $10 for Saudi Arabia to produce a barrel of oil.
The $100 factor in that they almost don't raise any taxes whatsoever but have to most outrageous welfare state in history. Also only like 30% of the population works and mostly in government or religious positions. The rest is literally NEETing. For real!!
E.g. working in retail or at McDonalds is totally unacceptable for Saudis.
They have no major domestic industry except petroleum and even petroleum is run mostly by foreigners.
Juan Harris
And only now that shit started hit the fan their 30-something
Wonderprince-leader pulls out some bogus plan to diversify their economy. However, this will takes far too long time. They took on some debt avoiding burning their currency reserves but even this will only slow down the decrease in reserves.
Circa 2021-22 they will have no cash left and as much debt like some piss poor South American countries.
Their central bank will then not be able to hold the SAR/USD peg for longer and the whole country will be depressed as fuck. Also foreign workers will then no longer want to work there since they only would be paid in then devalued currency.
Making things worse, their population has almost doubled since the 90's so that oil revenues have to be spread out over more people.
Xavier Cox
This sounds like a fucking awesome crash developing
Josiah Rogers
>28M Salafist shitheads
>second-most powerful military in the Middle East
what could possibly go wrong?
Carter Mitchell
Do not forget that their welfare state extends into Europe, where they fund extremist religios preachers.
I hope that they all return to riding camels and eating sand soon.
Sebastian Johnson
The thing is that they just have a shit country (except for oil and maybe the location between Europe and Asia)
Nobody wants to life in the fucking desert and move where Islam rules and all women are covered up etc.
I think they would have to devalue their standard of living and salaries at least to Pakistan or Indian tier in order to become competitive enough.
For any industry to move there they have to pay a fucking big premium for the company to move into this shit desert country putting them at a disadvantage. The only opportunity would be organic home gown industry, but their local human capital is not very bright (average iq of saudi arabia is 84) and definitely not competitive at current prices and salaries.
E.g. :
>In recent years, the government has pushed for greater Saudi employment, penalizing companies with few Saudi employees. Many employers hate the program, saying it forces them to swell their payrolls with people who contribute little.
>Even companies that have hired lots of Saudis have often had to rely on significant social engineering to get them working.
Saudis made up one-third of the crew at a Riyadh McDonald’s on a recent morning, manning the drive-up window and cash register and making fries.
>While they do the same work as foreigners, they earn much more. Salaries for foreign crew start at $320 a month, while Saudis get $1,460, part of which is subsidized by the government.
news.nationalpost.com
Ethan Hughes
How is it even legal to pay some workers $320 and others four times at much?
Ayden Rodriguez
how long until saudi arabia crash and burns?
Jeremiah Perry
6 years or so, at current prices.
They have huge untapped potential to make money though:
>Saudi Aramco IPO
>better asset allocation of their sovereign fund
>enabling taxes like VAT or income tax
>tourism
Levi Adams
who do you think makes the rules in saud land?
Gavin Cox
>>Saudi Aramco IPO
Shady as fuck and the countries cash machine.
Once revolution breaks out the new government will nationalize it again.
>>better asset allocation of their sovereign fund
Soon will not have much left to allocate.
>>enabling taxes like VAT or income tax
They are like Greece and probably can't even collect.
Also literally the only thing that keeps the Saudi family in power are free handouts to the people so it usually goes the other way around.
>>tourism
They only have sand and this Islamic cube stuff in Mecca. As far as western toursm goes, even Turkey and UAE start having trubble.
Brandon Diaz
I'm not even saying their plan to restructure their economy is bad. It's just that they are so late in doing this that their chance to succeed is very low.
Like Germany starting some brut force offensives in early 1945
youtube.com
Kayden James
Thank you
Andrew Rodriguez
>tourism
sharia running countries are shit tier for tourism.
Who want make holiday in a country where it is illigal to stay with his girlfriend in the same hotelroom. Also woman recently get jailed for kissing in public or going to police becouse someone raped them. I even avoid flying over their airports.
Lucas Phillips
Could they copy the success story of Dubai, or does attracting foreign business work out only for one country in a region?
Logan Ortiz
Dubai also depends on oil. All the bling bling gold hotels ae build from oil money. Most tourist are comming from rich arab oil states.
Also Dubai runs Sharia....
Luis Myers
Not Jesus that's for sure
Levi Nguyen
Moreso the fact that the country is so backwards that it scares off foreign investment. There's billions to be made off of Saudi Aramco and the multiple state assets the country holds, but who wants that when the government is too busy telling women what they can and cannot wear. Not to mention the inherent fuck ups in their demographics/economy/etc. If they didn't have oil, the Saudis would be nothing.
Colton Robinson
>Could they copy the success story of Dubai
Nah bro.
Everybody goes there because it's the most liberal and least shit place in the middle east. It's like the middle east's spring break location and place to have fun.