Recently during a television talk show, the Saudi Deputy Economy Minister, Mohammed Al-Tuwaijri, raised a question that will Saudi-Arabia be bankrupted in the next three to four years. The deputy Economy Minister highlighted many economic factors due to which Saudi Arabia is going to be bankrupted if measures are not taken. He clarified that if the oil prices remain between $40 and $45 per barrel and the Kingdom of Saudi-Arabia does not take enough smart steps to avoid it, there is no way out other than bankruptcy. He continued to state that the reason is the fluctuating prices of oil, which is considered to be the Kingdom’s only income source. Other than that there is the reduction of strategic reserves and not enough ability to get loans.
We cannot conclude that the end is going to be bankruptcy anyway, as there were few countries in the past who also suffered such economic drops such as, Greece and Argentina. The problem is that the Kingdom’s economic condition is bit different. Saudi Arabia is well stocked with numerous resources. The Kingdom is 90% depending on its oil for budget spending; it is the time that one should take advantage of the other sources especially after seventy percent drop in oil revenue.
This big percentage rings warning bells for the Saudi economy. Now the current situation of the Kingdom is unparalleled and different from previously. This change in the oil market is due to terrorism prevailing in the region with Iran creating restlessness and the Yemen war. In order to save the country from bankruptcy, Saudi government should consider their rich resources other than oil.
Saudi Arabia is blessed with skillful young men and women who are capable of taking their country to new roads of development and progress. Saudi national cadre also needs significant support in the form of training and incentives from the respective authorities. We need to invest in our young manpower by giving them better education and skilled training. There are a lot of opportunities in hand to avail.
This is the right time now for the Saudi young generation to start free enterprises and set up businesses rather than waiting for government jobs. The government sector can fill only limited seats which are required whereas there are a huge proportion of job seekers available in the market.
We should seek ways to develop our Hajj and Umrah sector. This sector plays an important role in the Saudi economy.
We must promote domestic tourism and attract more visitors to visit the holy places throughout the year. Recommended: What are the benefits of converting Umrah Visa into Tourist Visa?
We should strengthen national industries and promote foreign investments. Recommended: Procedure to Apply for SAGIA License in Saudi Arabia
We have to modify our links between the east and west by developing our seaports and promote free trade ports and open free trade zones for investors through airports.
We should take advantage of the strategic position of Saudi Arabia between Southeast Asia, Africa, and Europe to grab huge sums of investments. I am sure that the Kingdom can survive this economic crisis. This won’t remain for long.
Source: Saudi Gazette