Gulf's financial wealth could be over in 15 years: IMF
- Thread starter Glass
- Start date
Get fucked
The Decline and Fall of the Gulf's Oil Empire Is Looming
Bloomberg News
David Fickling
March 21, 2020
9:01 PM EDT
Filed under
(Bloomberg Opinion) — For much of the world, oil wealth is a curse. Endowed with ample reserves of hydrocarbons, the likes of Nigeria, Angola, Kazakhstan, Mexico and Venezuela frittered the benefits away.
Only in the Persian Gulf has oil been a nation-building blessing. The discoveries of petroleum in the mid-20th century turned an anarchic, desperately poor region into one of the most affluent places on the planet. Qatar, Kuwait and the United Arab Emirates are all richer than Switzerland. Even Saudi Arabia, Bahrain, and Oman are on a par with Japan or the U.K.
The transformation has been so complete that it’s easy to believe the wealth derives from some eternal law of nature. That’s not true, though. The current price war in oil markets will only hasten the moment when the unsustainable nature of Gulf economies faces a brutal reckoning.
Right now, all six monarchies are joining with Russia in opening the taps to flood the crude market and flush out higher-cost producers. While the planned 2.5 million barrels per day increase from Saudi Arabia is by far the biggest wave in this tsunami, its neighbors aren’t holding back. The U.A.E. will daily add about 200,000 barrels or more, according to consultancy Rystad Energy, while Kuwait will lift output by 110,000 barrels. Russia will raise daily production by 200,000 barrels.
That splurge of supply isn’t due to geopolitics. Instead, it’s a mathematical result of the decline in the oil price. With fewer dollars coming in for each barrel of crude, Gulf monarchies need to pump much more to maintain something resembling current revenues.
In principle, there’s ample firepower to fight this war. It costs about as much to pump a barrel of oil from a Gulf oilfield as it does to buy a bottle of fancy mineral water. Even in an extreme scenario where crude prices fall as low as $10 a barrel and almost the entire global oil industry loses money, Gulf producers would remain in the black. The problem, as we wrote last week, comes for their economies, which need a far higher price to balance their budgets and support dollar-linked currencies.
The region’s central banks and sovereign wealth funds have assembled vast sums to see them through such a crisis, as well as the longer-term risk of declining demand. Faced with lower prices, however, these buffers could disintegrate quickly.
Take the net financial assets held by Saudi Arabia’s government — central bank reserves, plus sovereign wealth fund assets, minus government debt. These declined to just 0.1% of gross domestic product from 50% over the four years through 2018 as crude plunged from levels of around $100 a barrel at the end of 2014. The kingdom is now likely to be a net debtor for the foreseeable future, even if prices rise back above $80.
Over the same four years, net financial assets held by the six Gulf monarchies fell by around half a trillion dollars, to around $2 trillion, according to a study last month by the International Monetary Fund. Even if peak oil demand doesn’t hit until 2040, that remaining sum could be depleted by 2034, according to the Fund. Oil at $20 a barrel would run it down even faster, emptying the coffers as soon as 2027.
With oil prices in the range of $50 to $55 a barrel, Saudi Arabia’s international reserves would fall to about five months of import coverage as soon as 2024, according to an IMF report last year. That should be a deeply alarming prospect, bringing the kingdom within months of an unthinkable balance-of-payments crisis and the abandonment of the dollar peg, which has underpinned the global oil trade for a generation. Yet the prices we’re now seeing make this look almost like an optimistic scenario.
There’s still time to avert this future, but it will involve major changes to our ideas about the Gulf and its the role in the global economy.
Governments in the region enacted vicious budget cuts in the wake of the 2014 price decline, removing subsidies and adding sales taxes in a way that’s fraying the edges of their sumptuous welfare states. If they fall to an even-lower ledge, there will be pressure to add further taxes and shrink bloated civil services. Neither will be popular with citizens who have never been allowed a democratic vote. Lavish defense and security spending, which accounts for nearly a third of Saudi Arabia’s budget, may have to shrink.
The era when the Gulf nations and their sovereign wealth funds were magic cash machines prepared to pay top dollar for assets on every continent may be coming to an end. They may even have to turn into net sellers. That will affect institutions from the U.S. Treasury market, where Saudi Arabia holds about $183 billion of securities; to Softbank Group Corp., which may find Riyadh a less generous partner for funding Masayoshi Son’s expansive visions.
The monarchies have surfed a remarkable tide of wealth over the past half-century or so, but every wave eventually crashes. Future generations will never again see the wealth that current subjects enjoy. Perhaps the Gulf wasn’t spared from oil’s curse, after all. That moment was only deferred.
This column does not necessarily reflect the opinion of Bloomberg LP and its owners.
David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.
©2020 Bloomberg L.P.
https://business.financialpost.com/...e-and-fall-of-the-gulfs-oil-empire-is-looming
The Decline and Fall of the Gulf's Oil Empire Is Looming
Bloomberg News
David Fickling
March 21, 2020
9:01 PM EDT
Filed under
- PMN Business
(Bloomberg Opinion) — For much of the world, oil wealth is a curse. Endowed with ample reserves of hydrocarbons, the likes of Nigeria, Angola, Kazakhstan, Mexico and Venezuela frittered the benefits away.
Only in the Persian Gulf has oil been a nation-building blessing. The discoveries of petroleum in the mid-20th century turned an anarchic, desperately poor region into one of the most affluent places on the planet. Qatar, Kuwait and the United Arab Emirates are all richer than Switzerland. Even Saudi Arabia, Bahrain, and Oman are on a par with Japan or the U.K.
The transformation has been so complete that it’s easy to believe the wealth derives from some eternal law of nature. That’s not true, though. The current price war in oil markets will only hasten the moment when the unsustainable nature of Gulf economies faces a brutal reckoning.
Right now, all six monarchies are joining with Russia in opening the taps to flood the crude market and flush out higher-cost producers. While the planned 2.5 million barrels per day increase from Saudi Arabia is by far the biggest wave in this tsunami, its neighbors aren’t holding back. The U.A.E. will daily add about 200,000 barrels or more, according to consultancy Rystad Energy, while Kuwait will lift output by 110,000 barrels. Russia will raise daily production by 200,000 barrels.
That splurge of supply isn’t due to geopolitics. Instead, it’s a mathematical result of the decline in the oil price. With fewer dollars coming in for each barrel of crude, Gulf monarchies need to pump much more to maintain something resembling current revenues.
In principle, there’s ample firepower to fight this war. It costs about as much to pump a barrel of oil from a Gulf oilfield as it does to buy a bottle of fancy mineral water. Even in an extreme scenario where crude prices fall as low as $10 a barrel and almost the entire global oil industry loses money, Gulf producers would remain in the black. The problem, as we wrote last week, comes for their economies, which need a far higher price to balance their budgets and support dollar-linked currencies.
The region’s central banks and sovereign wealth funds have assembled vast sums to see them through such a crisis, as well as the longer-term risk of declining demand. Faced with lower prices, however, these buffers could disintegrate quickly.
Take the net financial assets held by Saudi Arabia’s government — central bank reserves, plus sovereign wealth fund assets, minus government debt. These declined to just 0.1% of gross domestic product from 50% over the four years through 2018 as crude plunged from levels of around $100 a barrel at the end of 2014. The kingdom is now likely to be a net debtor for the foreseeable future, even if prices rise back above $80.
Over the same four years, net financial assets held by the six Gulf monarchies fell by around half a trillion dollars, to around $2 trillion, according to a study last month by the International Monetary Fund. Even if peak oil demand doesn’t hit until 2040, that remaining sum could be depleted by 2034, according to the Fund. Oil at $20 a barrel would run it down even faster, emptying the coffers as soon as 2027.
With oil prices in the range of $50 to $55 a barrel, Saudi Arabia’s international reserves would fall to about five months of import coverage as soon as 2024, according to an IMF report last year. That should be a deeply alarming prospect, bringing the kingdom within months of an unthinkable balance-of-payments crisis and the abandonment of the dollar peg, which has underpinned the global oil trade for a generation. Yet the prices we’re now seeing make this look almost like an optimistic scenario.
There’s still time to avert this future, but it will involve major changes to our ideas about the Gulf and its the role in the global economy.
Governments in the region enacted vicious budget cuts in the wake of the 2014 price decline, removing subsidies and adding sales taxes in a way that’s fraying the edges of their sumptuous welfare states. If they fall to an even-lower ledge, there will be pressure to add further taxes and shrink bloated civil services. Neither will be popular with citizens who have never been allowed a democratic vote. Lavish defense and security spending, which accounts for nearly a third of Saudi Arabia’s budget, may have to shrink.
The era when the Gulf nations and their sovereign wealth funds were magic cash machines prepared to pay top dollar for assets on every continent may be coming to an end. They may even have to turn into net sellers. That will affect institutions from the U.S. Treasury market, where Saudi Arabia holds about $183 billion of securities; to Softbank Group Corp., which may find Riyadh a less generous partner for funding Masayoshi Son’s expansive visions.
The monarchies have surfed a remarkable tide of wealth over the past half-century or so, but every wave eventually crashes. Future generations will never again see the wealth that current subjects enjoy. Perhaps the Gulf wasn’t spared from oil’s curse, after all. That moment was only deferred.
This column does not necessarily reflect the opinion of Bloomberg LP and its owners.
David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.
©2020 Bloomberg L.P.
https://business.financialpost.com/...e-and-fall-of-the-gulfs-oil-empire-is-looming
Oil price crash piles pressure on coronavirus-hit Saudi economy
0
SHARESShare it!
Published March 21, 2020, 10:00 PM
By Anuj Chopra
RIYADH (AFP) – From empty hotels to shuttered beauty salons, oil-dependent Saudi Arabia is bracing for a coronavirus-led economic slump on top of possible austerity measures as crude prices go into free fall.
Huge losses are expected after the Arab world’s biggest economy shut down cinemas, malls and restaurants, halted flights, suspended the year-round umrah pilgrimage and locked down eastern Qatif region – home to around 500,000 – in a bid to contain the deadly virus.
The top crude exporter also faces plummeting oil prices, which slipped below $30 a barrel this week for the first time in four years, on the back of sagging demand and a price war with Russia.
The shock of this liquidity sapping cocktail of events has necessitated austerity measures which are likely to imperil grandiose diversification projects.
Adding to the chain of events are the recent arrests of King Salman’s brother and nephew, which triggered speculation of political instability amid the government’s public silence on the royal purge.
“It’s crisis time,” said a Saudi government employee, explaining why he had begun converting part of his salary into US dollars and gold coins.
“Everything is unpredictable and we should be ready for the worst.”
The central bank has shrugged off fears that plunging oil prices were straining the kingdom’s currency, pegged for decades to the US dollar.
A jeweller in Riyadh told AFP he had fielded a number of enquiries to convert “substantial amounts of cash” into gold bars and coins.
Spending cuts
Many government workers fear cuts to state allowances are coming despite rising living costs.
Some Saudis also worry that recruitment in the public and private sectors will freeze, just as unemployment was already high.
Meanwhile, Saudi students are worried that government scholarships for overseas education will take a hit.
The finance ministry has instructed government bodies to submit proposals to slash this year’s spending by 20 to 30 percent, the economic consultancy Nasser Saidi and Associates said in a research note.
“This will likely take the shape of postponed projects and delays in awarding contracts” among other economizing measures, the note said.
The kingdom is now preparing budget scenarios in which crude prices could drop as low as $12-$20 per barrel, according to the Energy Intelligence Group.
“Public confidence depends on government spending and oil sentiment – both are down,” said a consultant advising a Saudi ministry on a major project.
“We don’t know if we will have our jobs tomorrow.”
The once free-spending OPEC kingpin has instructed Saudi ministries that they need to account for “every penny” they spend, the consultant added.
Saudi authorities did not respond to requests for comment.
Several Riyadh hotels – many of them empty amid falling tourist numbers – have been forced to send their staff on unpaid leave.
But providing some support, the health ministry has booked multiple Riyadh hotels to quarantine people after the coronavirus scare, according to several staff and guests who were forced to empty the properties at short notice.
‘Survival of fittest’
The oil crash follows the crude exporter’s decision to hike production from April and offer the biggest price cuts in two decades, in retaliation for Russia’s refusal to tighten supply as the virus saps demand.
https://business.mb.com.ph/2020/03/...es-pressure-on-coronavirus-hit-saudi-economy/
0
SHARESShare it!
Published March 21, 2020, 10:00 PM
By Anuj Chopra
RIYADH (AFP) – From empty hotels to shuttered beauty salons, oil-dependent Saudi Arabia is bracing for a coronavirus-led economic slump on top of possible austerity measures as crude prices go into free fall.
Huge losses are expected after the Arab world’s biggest economy shut down cinemas, malls and restaurants, halted flights, suspended the year-round umrah pilgrimage and locked down eastern Qatif region – home to around 500,000 – in a bid to contain the deadly virus.
The top crude exporter also faces plummeting oil prices, which slipped below $30 a barrel this week for the first time in four years, on the back of sagging demand and a price war with Russia.
The shock of this liquidity sapping cocktail of events has necessitated austerity measures which are likely to imperil grandiose diversification projects.
Adding to the chain of events are the recent arrests of King Salman’s brother and nephew, which triggered speculation of political instability amid the government’s public silence on the royal purge.
“It’s crisis time,” said a Saudi government employee, explaining why he had begun converting part of his salary into US dollars and gold coins.
“Everything is unpredictable and we should be ready for the worst.”
The central bank has shrugged off fears that plunging oil prices were straining the kingdom’s currency, pegged for decades to the US dollar.
A jeweller in Riyadh told AFP he had fielded a number of enquiries to convert “substantial amounts of cash” into gold bars and coins.
Spending cuts
Many government workers fear cuts to state allowances are coming despite rising living costs.
Some Saudis also worry that recruitment in the public and private sectors will freeze, just as unemployment was already high.
Meanwhile, Saudi students are worried that government scholarships for overseas education will take a hit.
The finance ministry has instructed government bodies to submit proposals to slash this year’s spending by 20 to 30 percent, the economic consultancy Nasser Saidi and Associates said in a research note.
“This will likely take the shape of postponed projects and delays in awarding contracts” among other economizing measures, the note said.
The kingdom is now preparing budget scenarios in which crude prices could drop as low as $12-$20 per barrel, according to the Energy Intelligence Group.
“Public confidence depends on government spending and oil sentiment – both are down,” said a consultant advising a Saudi ministry on a major project.
“We don’t know if we will have our jobs tomorrow.”
The once free-spending OPEC kingpin has instructed Saudi ministries that they need to account for “every penny” they spend, the consultant added.
Saudi authorities did not respond to requests for comment.
Several Riyadh hotels – many of them empty amid falling tourist numbers – have been forced to send their staff on unpaid leave.
But providing some support, the health ministry has booked multiple Riyadh hotels to quarantine people after the coronavirus scare, according to several staff and guests who were forced to empty the properties at short notice.
‘Survival of fittest’
The oil crash follows the crude exporter’s decision to hike production from April and offer the biggest price cuts in two decades, in retaliation for Russia’s refusal to tighten supply as the virus saps demand.
https://business.mb.com.ph/2020/03/...es-pressure-on-coronavirus-hit-saudi-economy/
Gulf stock markets reel as COVID-19 cases surge
BY DAILY SABAH
ISTANBUL MID-EAST
MAR 22, 2020 6:23 PM GMT+3
AFP Photo
Stock markets in the Gulf experienced further losses as countries across the Middle East implemented new precautions such as restrictions on the movement of people and shutting public places amid the new coronavirus outbreak.
Markets in Dubai and Abu Dhabi saw losses on Sunday. The United Arab Emirates’ main equity index has fallen by 30% in March. Emirates NBD, the largest lender in Dubai, has lost more than 40% of its value this month, while First Abu Dhabi Bank, the largest lender in the UAE, has plunged by 37%, according to the Bloomberg data.
The worst-hit Middle Eastern country, Iran, alongside Saudi Arabia, announced new cases of COVID-19 on Sunday. The number of deaths in Iran reached 1,685, with the total number of infections at 21,638, while Turkey and Israel neared 1,000 cases.
Israel implemented new rules on Sunday prohibiting most Israelis from leaving their homes for the next seven days.
Saudi Arabia has recorded 119 new coronavirus cases, taking the country's total tally to 511.
Qatar restricted all forms of public gatherings and made a statement saying that individuals who violate these restrictions would be arrested.
The UAE also implemented precautions such as shutting beaches, parks and pools, and imposing new restrictions on restaurants.
The aviation industry in the Middle East is also being battered by the new coronavirus outbreak. Emirates airline announced the suspension of all passenger flights from March 25, while Abu Dhabi’s Etihad Airways also halted the majority of its flights.
Turkey's death toll due to COVID-19 rose to 21 Saturday, while the number of confirmed cases has surged since the first case was announced last week, reaching 947.
Turkey has taken several measures to stem the virus such as temporarily closing schools and universities, halting events and public activities, postponing foreign visits, and barring spectators from sports events.
Interior Ministry on Monday ordered all cafes, gyms, theaters, cinemas, performance centers, concert halls, wedding halls, music halls, beer halls, taverns, hookah lounges, internet cafes, all types of game centers, amusement parks, pools, Turkish baths, saunas and spas to be closed beginning Tuesday.
https://www.dailysabah.com/world/mid-east/gulf-stock-markets-reel-as-covid-19-cases-surge
BY DAILY SABAH
ISTANBUL MID-EAST
MAR 22, 2020 6:23 PM GMT+3
AFP Photo
Stock markets in the Gulf experienced further losses as countries across the Middle East implemented new precautions such as restrictions on the movement of people and shutting public places amid the new coronavirus outbreak.
Markets in Dubai and Abu Dhabi saw losses on Sunday. The United Arab Emirates’ main equity index has fallen by 30% in March. Emirates NBD, the largest lender in Dubai, has lost more than 40% of its value this month, while First Abu Dhabi Bank, the largest lender in the UAE, has plunged by 37%, according to the Bloomberg data.
The worst-hit Middle Eastern country, Iran, alongside Saudi Arabia, announced new cases of COVID-19 on Sunday. The number of deaths in Iran reached 1,685, with the total number of infections at 21,638, while Turkey and Israel neared 1,000 cases.
Israel implemented new rules on Sunday prohibiting most Israelis from leaving their homes for the next seven days.
Saudi Arabia has recorded 119 new coronavirus cases, taking the country's total tally to 511.
Qatar restricted all forms of public gatherings and made a statement saying that individuals who violate these restrictions would be arrested.
The UAE also implemented precautions such as shutting beaches, parks and pools, and imposing new restrictions on restaurants.
The aviation industry in the Middle East is also being battered by the new coronavirus outbreak. Emirates airline announced the suspension of all passenger flights from March 25, while Abu Dhabi’s Etihad Airways also halted the majority of its flights.
Turkey's death toll due to COVID-19 rose to 21 Saturday, while the number of confirmed cases has surged since the first case was announced last week, reaching 947.
Turkey has taken several measures to stem the virus such as temporarily closing schools and universities, halting events and public activities, postponing foreign visits, and barring spectators from sports events.
Interior Ministry on Monday ordered all cafes, gyms, theaters, cinemas, performance centers, concert halls, wedding halls, music halls, beer halls, taverns, hookah lounges, internet cafes, all types of game centers, amusement parks, pools, Turkish baths, saunas and spas to be closed beginning Tuesday.
https://www.dailysabah.com/world/mid-east/gulf-stock-markets-reel-as-covid-19-cases-surge
Saudi Arabia’s Oil Price War Is Backfiring
By Tsvetana Paraskova - Mar 22, 2020, 12:00 PM CDT
Join Our Community
Saudi Arabia and Russia must have anticipated an oil price crash when they broke up their three-year-long bromance to push up oil prices. Two weeks later and nearly 4 million bpd of total promised additional oil supply to the market next month, and Riyadh and Moscow are now counting the cost and trying to adjust government spending. The friends-turned-foes expect sharp drops in oil revenues in the near term, not only because Brent Crude is barely managing to cling to the $30 mark these days, but also because the coronavirus pandemic is leading to huge demand destruction.
Saudi Arabia announced this week that it is reducing government expenditures by US$133 billion (50 billion Saudi riyals), or nearly 5 percent of its budget spending for 2020 after the government approved “a partial reduction in some items with the least social and economic impact.”
These measures were approved “in light of the noticeable development in the public finance management, and the existence of the appropriate flexibility to take measures in the face of emergency shocks with a high level of efficiency,” says Saudi Minister of Finance and Acting Minister of Economy and Planning, Mohammad Al-Jadaan, the official Saudi Press Agency reported.
The Kingdom “has taken measures to reduce the impact of low prices of oil, and additional measures will be taken to deal with the expected drop in prices,” Saudi Arabia says, nothing that additional expenditures could be re-evaluated and potentially cut.
Related: The Reason Why Russia Refused To Cut Oil ProductionEven before the collapse of the OPEC+ talks, Saudi Arabia’s finance ministry had asked government agencies to propose a 20-30 percent cut in their budgets due to the oil price slide, Reuters reported last week, citing four sources with knowledge of the plans.
It looks like Saudi Arabia bets on tapping cash from its sovereign wealth fund to patch up government finances with oil prices three times lower than their break-even oil price.
According to Fitch Ratings, Saudi Arabia needs oil prices at $91 a barrel in 2020 to balance its budget, all else being equal.
“For countries in the Gulf Cooperation Council (GCC), we estimate that a change of USD10 in the price per barrel of oil tends to affect government revenues by 2%-4% of GDP,” Fitch said last week. The rating agency’s statement came a day after oil prices crashed by 25 percent as Saudi Arabia – a GCC member, OPEC’s top producer, and the world’s top oil exporter – vowed to significantly boost supply and slashed the price for its oil in a dramatic shift in its oil price-fixing policies of the past three years.
The Kingdom is signaling that it can adapt to today's lower oil prices, but analysts are not buying this claim.
At $30 a Brent barrel, the Saudi wealth fund will deplete fast and reduced government spending will stall projects, and the already suffering private non-oil sector will suffer further. That’s the near-term damage.
The longer-term damage is the lack of funds for the ambitious Vision 2030 plan of Saudi Crown Prince Mohammad bin Salman, which was already going downhill even before the oil price collapse as the promised multibillion foreign investment and Saudi investment in “diversifying away from oil” weren’t exactly flowing to the Kingdom.
“I think we are beginning to see that the vision 2030 is not going well,” Jean-François Seznec, Non-Resident Senior Fellow at Atlantic Council, said on an Atlantic Council press call last week.
There is a growing amount of tension among the population, even among the crown prince’s main supporters, Seznec said.
“But he needs to make a big impact. Now, his big impact is to force the Russians to give up and agree to the cuts, and if at the same time it destroys the U.S. shale industry so much the better,” Seznec noted.
Related: Big Oil Prepares To Suffer In 2020
The Russians are also bracing for an oil price war, promising up to a 500,000 bpd production increase and assuring the market they have enough resources to cover budget shortfalls at $25-30 oil for six to ten years.
The coronavirus pandemic and the lower economic activity, coupled with oil prices half the level before Russia and Saudi Arabia broke up the OPEC+ pact, will weigh on Russia’s revenues and budget, too.
Russia’s revenues from oil and gas will be US$39.5 billion (3 trillion rubles) lower than planned, Russian Finance Minister Anton Siluanov said this week, adding that Moscow now expects a budget deficit.
Analysts argue that Russia is in a better fiscal, financial, and political leadership position than Saudi Arabia to win the oil price war.
Yet, there will undoubtedly be economic pain for both sides in this war, which is already claiming the first collateral victims—U.S. shale, Canada’s oil industry, and the UK’s offshore oil and gas sector.
It’s now a game between Saudi Arabia and Russia of who will blink first, and in this game, the Saudis seem to have overestimated their fiscal buffers and underestimated the coronavirus-hit enormous demand destruction.
By Tsvetana Paraskova for Oilprice.com
https://oilprice.com/Energy/Crude-Oil/Saudi-Arabias-Oil-Price-War-Is-Backfiring.html
By Tsvetana Paraskova - Mar 22, 2020, 12:00 PM CDT
Join Our Community
Saudi Arabia and Russia must have anticipated an oil price crash when they broke up their three-year-long bromance to push up oil prices. Two weeks later and nearly 4 million bpd of total promised additional oil supply to the market next month, and Riyadh and Moscow are now counting the cost and trying to adjust government spending. The friends-turned-foes expect sharp drops in oil revenues in the near term, not only because Brent Crude is barely managing to cling to the $30 mark these days, but also because the coronavirus pandemic is leading to huge demand destruction.
Saudi Arabia announced this week that it is reducing government expenditures by US$133 billion (50 billion Saudi riyals), or nearly 5 percent of its budget spending for 2020 after the government approved “a partial reduction in some items with the least social and economic impact.”
These measures were approved “in light of the noticeable development in the public finance management, and the existence of the appropriate flexibility to take measures in the face of emergency shocks with a high level of efficiency,” says Saudi Minister of Finance and Acting Minister of Economy and Planning, Mohammad Al-Jadaan, the official Saudi Press Agency reported.
The Kingdom “has taken measures to reduce the impact of low prices of oil, and additional measures will be taken to deal with the expected drop in prices,” Saudi Arabia says, nothing that additional expenditures could be re-evaluated and potentially cut.
Related: The Reason Why Russia Refused To Cut Oil ProductionEven before the collapse of the OPEC+ talks, Saudi Arabia’s finance ministry had asked government agencies to propose a 20-30 percent cut in their budgets due to the oil price slide, Reuters reported last week, citing four sources with knowledge of the plans.
It looks like Saudi Arabia bets on tapping cash from its sovereign wealth fund to patch up government finances with oil prices three times lower than their break-even oil price.
According to Fitch Ratings, Saudi Arabia needs oil prices at $91 a barrel in 2020 to balance its budget, all else being equal.
“For countries in the Gulf Cooperation Council (GCC), we estimate that a change of USD10 in the price per barrel of oil tends to affect government revenues by 2%-4% of GDP,” Fitch said last week. The rating agency’s statement came a day after oil prices crashed by 25 percent as Saudi Arabia – a GCC member, OPEC’s top producer, and the world’s top oil exporter – vowed to significantly boost supply and slashed the price for its oil in a dramatic shift in its oil price-fixing policies of the past three years.
The Kingdom is signaling that it can adapt to today's lower oil prices, but analysts are not buying this claim.
At $30 a Brent barrel, the Saudi wealth fund will deplete fast and reduced government spending will stall projects, and the already suffering private non-oil sector will suffer further. That’s the near-term damage.
The longer-term damage is the lack of funds for the ambitious Vision 2030 plan of Saudi Crown Prince Mohammad bin Salman, which was already going downhill even before the oil price collapse as the promised multibillion foreign investment and Saudi investment in “diversifying away from oil” weren’t exactly flowing to the Kingdom.
“I think we are beginning to see that the vision 2030 is not going well,” Jean-François Seznec, Non-Resident Senior Fellow at Atlantic Council, said on an Atlantic Council press call last week.
There is a growing amount of tension among the population, even among the crown prince’s main supporters, Seznec said.
“But he needs to make a big impact. Now, his big impact is to force the Russians to give up and agree to the cuts, and if at the same time it destroys the U.S. shale industry so much the better,” Seznec noted.
Related: Big Oil Prepares To Suffer In 2020
The Russians are also bracing for an oil price war, promising up to a 500,000 bpd production increase and assuring the market they have enough resources to cover budget shortfalls at $25-30 oil for six to ten years.
The coronavirus pandemic and the lower economic activity, coupled with oil prices half the level before Russia and Saudi Arabia broke up the OPEC+ pact, will weigh on Russia’s revenues and budget, too.
Russia’s revenues from oil and gas will be US$39.5 billion (3 trillion rubles) lower than planned, Russian Finance Minister Anton Siluanov said this week, adding that Moscow now expects a budget deficit.
Analysts argue that Russia is in a better fiscal, financial, and political leadership position than Saudi Arabia to win the oil price war.
Yet, there will undoubtedly be economic pain for both sides in this war, which is already claiming the first collateral victims—U.S. shale, Canada’s oil industry, and the UK’s offshore oil and gas sector.
It’s now a game between Saudi Arabia and Russia of who will blink first, and in this game, the Saudis seem to have overestimated their fiscal buffers and underestimated the coronavirus-hit enormous demand destruction.
By Tsvetana Paraskova for Oilprice.com
https://oilprice.com/Energy/Crude-Oil/Saudi-Arabias-Oil-Price-War-Is-Backfiring.html
ArabianEmpires&Caliphates
SENIOR MEMBER
- Joined
- Aug 2, 2016
- Messages
- 2,377
- Reaction score
- 4
- Country
- Location
LOL, this impoverished Arabized Anatoli and his fairytale dreams and constant trolling.
KSA alone has a bigger economy than 80 million big Turkey and the GCC has an GDP (nominal) economy 2.5-3 times larger than Turkey and a GDP per capita LIGHTYEARS ahead of Turkey which is comparable to that of Lebanon.
A few quick facts:
1) KSA/GCC is the richest area of the world in hydrocarbon and mineral wealth. KSA alone has a mineral and hydrocarbon wealth in the trillions upon trillions of USD and only second to 6.5 times larger and 145 million big Russia and 4 times larger and 330 million big USA.
2) KSA/GCC have some of the largest sovereign wealth funs in the world worth over 1 trillion USD combined.
3) KSA/GCC is one of the least indebted countries on the planet with the lowest debt-to-earnings ratio.
4) KSA/GCC non-oil/gas sector is booming and last year's record high budget for KSA (almost 250 billion USD) was 40% made up of non-oil revenue.
5) KSA/GCC has no taxation which is one of the main income sources of every state.
6) Every future economic prognosis (2030, 2040, 2050) puts KSA in the top 20 in the world in terms of economic size.
7) Oil/gas/minerals are going nowhere. KSA can withstand an oil prices as low as 10 USD and still make a profit all it requires is changing the budget and restructuring the economy further away from oil which is an ongoing process. Most of KSA's oil export go to China, India and the developing world which are many decades away from moving away from oil.
8) KSA/GCC have some of the youngest and quickest growing populations in the world. Large populations = large economies (long-term speaking) by default.
9) Some of the best educated populations in the developing world.
10) Untold and untapped potential left to be discovered in KSA alone with women (now changing) barely making 15% of the workforce.
11) KSA alone having the by far biggest potential for alternative energy in the region (solar, wind, nuclear) while Saudi Arabian ACWA already being one of the solar/wind/alternative energy leaders in the region.
12) KSA/GCC has the largest petrochemical sector in the world and crude oil is just out of many elements of that industry.
13) IMF and other largely useless outlets have been projecting the imaginary collapse of KSA/GCC for 40+ years and they have ALWAYS been proven wrong. This will be no different and by that time (2030), KSA will have undergone the successful Saudi Vision 2030 anyway, so their worst case scenario is not going to be relevant by all accounts.
@Slav Defence @Horus this is a troll thread created by an Arab-obsessed troll and a duplicate thread since there already exists a thread about the Saudi Arabian economy and this thread is only created based on distorted information and only created with trolling in mind as can be seen by the user history of the thread starter and his comments.
Last edited:
Slav Defence
THINK TANK VICE CHAIRMAN: ANALYST
- Joined
- Oct 30, 2010
- Messages
- 7,574
- Reaction score
- 117
- Country
- Location
The poster has shared a news and interestingly I can see combination of remarks over this. However, if you read the posts carefully you will see that many posters are themselves denying what op is claiming. In addition to that, strong nations make backup plans when they even know that it will take at least a century for hard times to come. Arab and ME countries have strong reserves and oil production, alhamdullilah and no doubt these claims by op are not right in many ways. However, you can clearly learn that how certain business or investment can be useful for Saudi Arabia. I would be enjoying if I were you
LOL, this impoverished Arabized Anatoli and his fairytale dreams and constant trolling.
KSA alone has a bigger economy than 80 million big Turkey and the GCC has an GDP (nominal) economy 2.5-3 times larger than Turkey and a GDP per capita LIGHTYEARS ahead of Turkey which is comparable to that of Lebanon.
A few quick facts:
1) KSA/GCC is the richest area of the world in hydrocarbon and mineral wealth. KSA alone has a mineral and hydrocarbon wealth in the trillions upon trillions of USD and only second to 6.5 times larger and 145 million big Russia and 4 times larger and 330 million big USA.
2) KSA/GCC have some of the largest sovereign wealth funs in the world worth over 1 trillion USD combined.
3) KSA/GCC is one of the least indebted countries on the planet with the lowest debt-to-earnings ratio.
4) KSA/GCC non-oil/gas sector is booming and last year's record high budget for KSA (almost 250 billion USD) was 40% made up of non-oil revenue.
5) KSA/GCC has no taxation which is one of the main income sources of every state.
6) Every future economic prognosis (2030, 2040, 2050) puts KSA in the top 20 in the world in terms of economic size.
7) Oil/gas/minerals are going nowhere. KSA can withstand an oil prices as low as 10 USD and still make a profit all it requires is changing the budget and restructuring the economy further away from oil which is an ongoing process. Most of KSA's oil export go to China, India and the developing world which are many decades away from moving away from oil.
8) KSA/GCC have some of the youngest and quickest growing populations in the world. Large populations = large economies (long-term speaking) by default.
9) Some of the best educated populations in the developing world.
10) Untold and untapped potential left to be discovered in KSA alone with women (now changing) barely making 15% of the workforce.
11) KSA alone having the by far biggest potential for alternative energy in the region (solar, wind, nuclear) while Saudi Arabian ACWA already being one of the solar/wind/alternative energy leaders in the region.
12) KSA/GCC has the largest petrochemical sector in the world and crude oil is just out of many elements of that industry.
13) IMF and other largely useless outlets have been projecting the imaginary collapse of KSA/GCC for 40+ years and they have ALWAYS been proven wrong. This will be no different and by that time (2030), KSA will have undergone the successful Saudi Vision 2030 anyway, so their worst case scenario is not going to be relevant by all accounts.
@Slav Defence @Horus this is a troll thread created by an Arab-obsessed troll and a duplicate thread since there already exists a thread about the Saudi Arabian economy and this thread is only created based on distorted information and only created with trolling in mind as can be seen by the user history of the thread starter and his comments.
Regards
xDDDDD
Saudi Arabia losing at oil price war with Russia
Russia is in a better position than Saudi Arabia fiscally, financially, and politically to win the battle
by Has
2020-03-23
in Current Affairs, Economics
4 min read
0
Photo: pexels.com
Saudi Arabia must have known that an oil crash was imminent as they severe their three-year-long cooperation to push up oil prices. After two weeks and with almost 4 million barrels per day (bpd) of total promised supply of oil due for the market next month, Riyadh and Moscow are currently tallying up the cost as they adjust state spending.
The two countries, who went from friend to foe, now anticipate sharp declines in oil revenues in the short term, due to the Covid-19 pandemic wrecking demand as well as Brent crude oil barely remaining at USD$30 (S$43.75 ) recently. The Saudi Arabia government approved “a partial reduction in some items with the least social and economic impact” as it announced this week that it will cut government spending by SAR50 billion (S$19.42 billion) which is almost 5 per cent of its budget expenditure for 2020.
Saudi Press Agency reported that Mohammad Al-Jadaan, the Saudi Minister of Finance and Acting Minister of Economy and Planning stated that the approval was “in light of the noticeable development in the public finance management, and the existence of the appropriate flexibility to take measures in the face of emergency shocks with a high level of efficiency.”
Saudi Arabia stated that extra expenditures could be re-evaluated and possibly reduced as the country has adopted “measures to reduce the impact of low prices of oil, and additional measures will be taken to deal with the expected drop in prices”.
According to Reuters’ report last week, with its four sources regarding the matter, Saudi Arabia’s finance ministry had suggested to the government a 20-30 per cent reduction in their budgets because of the oil price decline. As oil prices were three times less than its break-even oil price, Saudi Arabia intends to utilise cash from its sovereign wealth fund to prop up the battered government finances.
To balance its budget, Saudi Arabia requires that oil prices be at USD$91 (S$132.63) per barrel in 2020, with all else being equal.
Fitch stated last week, a day following the oil price crash by 25 per cent, “For countries in the Gulf Cooperation Council (GCC), we estimate that a change of USD$10 in the price per barrel of oil tends to affect government revenues by 2%-4% of GDP.”
Saudi Arabia, which is the global top oil exporter, an OPEC top producer and a GCC member, promised to cut oil price by substantially increasing supply as part of its dramatic shift in its oil price-fixing policies of the last three years. Analysts are not trusting the claim that The Kingdom can adjust to the lower oil prices of today.
Lower government expenditure will cripple projects and the Saudi wealth fund will rapidly deplete if oil prices remain at USD$30 (S$43.72) per Brent barrel. In addition to this, the already-battered private non-oil sector will be damaged further in the short-term.
In achieving the ambitious Vision 2030 plan of Saudi Crown Prince Mohammad bin Salman, the lack of funds poses a long-term damage on the vision. Prior to the oil price crash, the vision was already not panning out well because Saudi investment in “diversifying away from oil” and the promised multibillion foreign investment were not coming to the Kingdom.
Last week, Non-Resident Senior Fellow at Atlantic Council, Jean-François Seznec spoke on an Atlantic Council press call: “I think we are beginning to see that the vision 2030 is not going well.” Mr Seznec noted that tension is rising among the population, even amidst the primary supporters of the crown prince.
“But he [crown price] needs to make a big impact. Now, his big impact is to force the Russians to give up and agree to the cuts, and if at the same time it destroys the U.S. shale industry so much the better,” he added.
Russia is also preparing for an oil price war as it assures markets that it has sufficient resources for six to ten years to compensate for budget shortfalls at USD$25-USD$30 (S$36.44- S$43.73) oil. Russia also promises up to 500,000 bpd higher production.
The lower economic activity, the COVID-19 pandemic as well as the low oil prices that is half the level before the OPEC+ pact was broken by Russia and Saudi Arabia, will also put pressure on Russia’s revenues and budget.
Anton Siluanov, the Russian Finance Minister stated this week that Russia’s revenues from oil and gas will be less by ₽3 trillion (S$55 billion) than planned and budget deficit is incoming for Moscow.
According to analysts, Russia is in a better position than Saudi Arabia fiscally, financially and politically to triumph in the oil price war.
However, both countries will inevitably suffer economic damages, as is the case for the first collateral victims which are the UK’s offshore oil and gas sector, U.S. shale and Canada’s oil industry.
As of now, it is a game of who makes the move first between Saudi Arabia and Russia. The former may have underestimated the demand contraction from COVID-19 and also overestimated their fiscal foundations.
https://www.theonlinecitizen.com/2020/03/23/saudi-arabia-losing-at-oil-price-war-with-russia/
Saudi Arabia losing at oil price war with Russia
Russia is in a better position than Saudi Arabia fiscally, financially, and politically to win the battle
2020-03-23
in Current Affairs, Economics
4 min read
0
Photo: pexels.com
Saudi Arabia must have known that an oil crash was imminent as they severe their three-year-long cooperation to push up oil prices. After two weeks and with almost 4 million barrels per day (bpd) of total promised supply of oil due for the market next month, Riyadh and Moscow are currently tallying up the cost as they adjust state spending.
The two countries, who went from friend to foe, now anticipate sharp declines in oil revenues in the short term, due to the Covid-19 pandemic wrecking demand as well as Brent crude oil barely remaining at USD$30 (S$43.75 ) recently. The Saudi Arabia government approved “a partial reduction in some items with the least social and economic impact” as it announced this week that it will cut government spending by SAR50 billion (S$19.42 billion) which is almost 5 per cent of its budget expenditure for 2020.
Saudi Press Agency reported that Mohammad Al-Jadaan, the Saudi Minister of Finance and Acting Minister of Economy and Planning stated that the approval was “in light of the noticeable development in the public finance management, and the existence of the appropriate flexibility to take measures in the face of emergency shocks with a high level of efficiency.”
Saudi Arabia stated that extra expenditures could be re-evaluated and possibly reduced as the country has adopted “measures to reduce the impact of low prices of oil, and additional measures will be taken to deal with the expected drop in prices”.
According to Reuters’ report last week, with its four sources regarding the matter, Saudi Arabia’s finance ministry had suggested to the government a 20-30 per cent reduction in their budgets because of the oil price decline. As oil prices were three times less than its break-even oil price, Saudi Arabia intends to utilise cash from its sovereign wealth fund to prop up the battered government finances.
To balance its budget, Saudi Arabia requires that oil prices be at USD$91 (S$132.63) per barrel in 2020, with all else being equal.
Fitch stated last week, a day following the oil price crash by 25 per cent, “For countries in the Gulf Cooperation Council (GCC), we estimate that a change of USD$10 in the price per barrel of oil tends to affect government revenues by 2%-4% of GDP.”
Saudi Arabia, which is the global top oil exporter, an OPEC top producer and a GCC member, promised to cut oil price by substantially increasing supply as part of its dramatic shift in its oil price-fixing policies of the last three years. Analysts are not trusting the claim that The Kingdom can adjust to the lower oil prices of today.
Lower government expenditure will cripple projects and the Saudi wealth fund will rapidly deplete if oil prices remain at USD$30 (S$43.72) per Brent barrel. In addition to this, the already-battered private non-oil sector will be damaged further in the short-term.
In achieving the ambitious Vision 2030 plan of Saudi Crown Prince Mohammad bin Salman, the lack of funds poses a long-term damage on the vision. Prior to the oil price crash, the vision was already not panning out well because Saudi investment in “diversifying away from oil” and the promised multibillion foreign investment were not coming to the Kingdom.
Last week, Non-Resident Senior Fellow at Atlantic Council, Jean-François Seznec spoke on an Atlantic Council press call: “I think we are beginning to see that the vision 2030 is not going well.” Mr Seznec noted that tension is rising among the population, even amidst the primary supporters of the crown prince.
“But he [crown price] needs to make a big impact. Now, his big impact is to force the Russians to give up and agree to the cuts, and if at the same time it destroys the U.S. shale industry so much the better,” he added.
Russia is also preparing for an oil price war as it assures markets that it has sufficient resources for six to ten years to compensate for budget shortfalls at USD$25-USD$30 (S$36.44- S$43.73) oil. Russia also promises up to 500,000 bpd higher production.
The lower economic activity, the COVID-19 pandemic as well as the low oil prices that is half the level before the OPEC+ pact was broken by Russia and Saudi Arabia, will also put pressure on Russia’s revenues and budget.
Anton Siluanov, the Russian Finance Minister stated this week that Russia’s revenues from oil and gas will be less by ₽3 trillion (S$55 billion) than planned and budget deficit is incoming for Moscow.
According to analysts, Russia is in a better position than Saudi Arabia fiscally, financially and politically to triumph in the oil price war.
However, both countries will inevitably suffer economic damages, as is the case for the first collateral victims which are the UK’s offshore oil and gas sector, U.S. shale and Canada’s oil industry.
As of now, it is a game of who makes the move first between Saudi Arabia and Russia. The former may have underestimated the demand contraction from COVID-19 and also overestimated their fiscal foundations.
https://www.theonlinecitizen.com/2020/03/23/saudi-arabia-losing-at-oil-price-war-with-russia/
Sigh... I dont want to reply to the bullshit u project but anyway
God beware, im not an arab.
Turkey economy is bigger then KSA both nominal and PPP. And the GCC doesnt grow, u are a bunch of nations which rely on Oil and that is vanishing, this is the purpose of this thread to observe this
No facts, projections, fairy tales.
No, under current (or not) u have the 2nd largest with most of it oil, this oil is going to vanish in 10 years and this is fact.
You are busy keeping ur oil-economy intact. A fund of 1 trillion isnt going to help there. A fund is supposed to add to the wealth, u are using that fund to keep ur natural recource reliant economy running. #Facts and u will only continue doing that for 10-15~years because the money dries up
Ur not, this is another fakes you have some oil which at stable prices frees u from that debt the reality is that ur debt is skyrocketing in an alarming rate: Source :
https://www.statista.com/statistics/531914/national-debt-of-saudi-arabia/
https://www.ceicdata.com/en/indicator/united-arab-emirates/forecast-government-net-debt
Furthermore Dubai is going to need a bailout very soon
https://www.forbes.com/sites/simonc...i-billion-dollar-debt-crisis-looms-for-dubai/
And Abu dhabi wont sustain this forever since - who would have guessed- the oil runs out
This is fake again, who are you fooling here lol
Lol
They are litteraly projecting that u will have an economic crisis and a falldown of ur whole economy lol
Thats also wrong, you cant sustain this because it eats up ur savings at a very fast rate and u dont have unlimited savings There is limited money for big projects.
Nope, if ur population is useless -wich urs is, then u will remain at the bottom. Ur not going to sustain a population which works 90% in the gov. sector. Nope. Ur futureless.
Also wrong, the OECD says something entirely different
https://www.oecd.org/education/education-at-a-glance/EAG2019_CN_SAU.pdf
That alone is pathetic lol They are allowed to drive by now- impressive
U are irrelevant, the only innovative country which is advanced is Israel besides us Turks lol
Thats also wrong ur ranked #6 and even there ur loosing on ranks
https://en.wikipedia.org/wiki/Petrochemical_industry
You dont have an economy, ur economy is OIL and in order to change that ur vision was- to use that OIL money to fund a new economic direction, since that oil money dries up. With the current state however and the fact that corona will probably have its effects in the world for maybe 1.5 years this becomes very problematic for you.
This is a thread for rational, well educated and interested people who want learn about the economic crisis in the gulf region, everyone is invited to engage here in rational discussions about the gulf economic crisis.
God beware, im not an arab.
Turkey economy is bigger then KSA both nominal and PPP. And the GCC doesnt grow, u are a bunch of nations which rely on Oil and that is vanishing, this is the purpose of this thread to observe this
No facts, projections, fairy tales.
No, under current (or not) u have the 2nd largest with most of it oil, this oil is going to vanish in 10 years and this is fact.
You are busy keeping ur oil-economy intact. A fund of 1 trillion isnt going to help there. A fund is supposed to add to the wealth, u are using that fund to keep ur natural recource reliant economy running. #Facts and u will only continue doing that for 10-15~years because the money dries up
Ur not, this is another fakes you have some oil which at stable prices frees u from that debt the reality is that ur debt is skyrocketing in an alarming rate: Source :
https://www.statista.com/statistics/531914/national-debt-of-saudi-arabia/
https://www.ceicdata.com/en/indicator/united-arab-emirates/forecast-government-net-debt
Furthermore Dubai is going to need a bailout very soon
https://www.forbes.com/sites/simonc...i-billion-dollar-debt-crisis-looms-for-dubai/
And Abu dhabi wont sustain this forever since - who would have guessed- the oil runs out
This is fake again, who are you fooling here lol
Lol
They are litteraly projecting that u will have an economic crisis and a falldown of ur whole economy lol
Thats also wrong, you cant sustain this because it eats up ur savings at a very fast rate and u dont have unlimited savings
There is limited money for big projects.Nope, if ur population is useless -wich urs is, then u will remain at the bottom. Ur not going to sustain a population which works 90% in the gov. sector. Nope. Ur futureless.
Also wrong, the OECD says something entirely different
https://www.oecd.org/education/education-at-a-glance/EAG2019_CN_SAU.pdf
That alone is pathetic lol They are allowed to drive by now- impressive
U are irrelevant, the only innovative country which is advanced is Israel besides us Turks lol
Thats also wrong ur ranked #6 and even there ur loosing on ranks
https://en.wikipedia.org/wiki/Petrochemical_industry
You dont have an economy, ur economy is OIL and in order to change that ur vision was- to use that OIL money to fund a new economic direction, since that oil money dries up. With the current state however and the fact that corona will probably have its effects in the world for maybe 1.5 years this becomes very problematic for you.
This is a thread for rational, well educated and interested people who want learn about the economic crisis in the gulf region, everyone is invited to engage here in rational discussions about the gulf economic crisis.
Slav Defence
THINK TANK VICE CHAIRMAN: ANALYST
- Joined
- Oct 30, 2010
- Messages
- 7,574
- Reaction score
- 117
- Country
- Location
Gentlemen,
As long as the thread and post is a news posted by neutral source and aims it's direction for meaningful discussion, I have absolutely no issue to let it being continued and having a mature discussion is always welcomed. However, please make sure that you all stay civil and do not mock anyone's culture, tradition, faith and other things.
I will issue warnings or even bans if required.
Saudi Arabia is a beautiful country with no doubt lots of untouched resources. It has beautiful culture and hospitable people around who treat guests nicely. Saudis are open people and they are brave in many ways. Political affiliations and certain agreement or disagreement or inclination towards certain disagrrable or agreeable things is a natural phenomena. Nobody has a right to ridicule Arabs for their certain views and mock their culture for no reason. Before pointing out Arabs , look at the politics of your country first and see how your country have effectively taken measures in resolving global crisis.
Saudis are biggest donors in many cases and I always admired them for their fascinating culture. I absolutely love their food, language and open mindedness. Saudis or any other country having their own values and are free to practise and implement. Nobody has a right to tell them what to do but we can if willing to help them can recommend them that how they can utilize their resources for more profitable business.
Saudi oil fields or ME oil fields are very important. Almost every war fought till now in the beginning of 20th century was meant for oil in the disguise. Be it Iraq war or any other war, all were fought for oil, natural resources and geopolitical edge and dominance.
Due to immense reliance upon oil, world is also trying to struggle by making tech that is more dependant on electricity but again affordability, comfort, environmental impact and other factors are involved.
Besides oil is not just needed for machines but it's byproducts are used for several other things. Saudi Arab surely has rich deposits of gemstones and has more potential for tourism : Ab excellent place for hiking as well.
Nope! I am not upon anyone's payroll except my lord. Most of the posts are result of difference of opinion, sectarian difference, Arab phobia. Where as some posters are genuinely making remarks to help.
Please help each other. I cannot vision oil crisis right now as we are already fighting a pandemic. Whether some od you like it or not Arabs are important in thia global arena , like Turks or Chinese or American or by other country.
Whether you like it or not Arabs have oil and you need oil.
Regards
As long as the thread and post is a news posted by neutral source and aims it's direction for meaningful discussion, I have absolutely no issue to let it being continued and having a mature discussion is always welcomed. However, please make sure that you all stay civil and do not mock anyone's culture, tradition, faith and other things.
I will issue warnings or even bans if required.
Saudi Arabia is a beautiful country with no doubt lots of untouched resources. It has beautiful culture and hospitable people around who treat guests nicely. Saudis are open people and they are brave in many ways. Political affiliations and certain agreement or disagreement or inclination towards certain disagrrable or agreeable things is a natural phenomena. Nobody has a right to ridicule Arabs for their certain views and mock their culture for no reason. Before pointing out Arabs , look at the politics of your country first and see how your country have effectively taken measures in resolving global crisis.
Saudis are biggest donors in many cases and I always admired them for their fascinating culture. I absolutely love their food, language and open mindedness. Saudis or any other country having their own values and are free to practise and implement. Nobody has a right to tell them what to do but we can if willing to help them can recommend them that how they can utilize their resources for more profitable business.
Saudi oil fields or ME oil fields are very important. Almost every war fought till now in the beginning of 20th century was meant for oil in the disguise. Be it Iraq war or any other war, all were fought for oil, natural resources and geopolitical edge and dominance.
Due to immense reliance upon oil, world is also trying to struggle by making tech that is more dependant on electricity but again affordability, comfort, environmental impact and other factors are involved.
Besides oil is not just needed for machines but it's byproducts are used for several other things. Saudi Arab surely has rich deposits of gemstones and has more potential for tourism : Ab excellent place for hiking as well.
Nope! I am not upon anyone's payroll except my lord. Most of the posts are result of difference of opinion, sectarian difference, Arab phobia. Where as some posters are genuinely making remarks to help.
Please help each other. I cannot vision oil crisis right now as we are already fighting a pandemic. Whether some od you like it or not Arabs are important in thia global arena , like Turks or Chinese or American or by other country.
Whether you like it or not Arabs have oil and you need oil.
Regards
Last edited:
@Slav Defence
Take a sip of coffee or tea and have a nice read of the academic articles which display the economic crisis in the gulf. Its important to have solid, toughtful and rational discussions in this Forum and the reality is,- this thread is mostly peaceful, it simply shows us that there are certain things where the Saudis and their emirati brethren are failing and posting articles about that is not a crime I think, that might a crime in Saudi arabia or the emirates where they want to project that everything is good and if someone disagrees gets jailed or kiked out of the country but in order to have a succsesfully country also critical points need to be adressed.
Take a sip of coffee or tea and have a nice read of the academic articles which display the economic crisis in the gulf. Its important to have solid, toughtful and rational discussions in this Forum and the reality is,- this thread is mostly peaceful, it simply shows us that there are certain things where the Saudis and their emirati brethren are failing and posting articles about that is not a crime I think, that might a crime in Saudi arabia or the emirates where they want to project that everything is good and if someone disagrees gets jailed or kiked out of the country but in order to have a succsesfully country also critical points need to be adressed.
Slav Defence
THINK TANK VICE CHAIRMAN: ANALYST
- Joined
- Oct 30, 2010
- Messages
- 7,574
- Reaction score
- 117
- Country
- Location
Arabs are simple people. They don't realize how fun it is to have "oil fields" . I mean this is so fun that some posters are crying over oil resources to be "depleted" soon.I dont see any troll or obsessed posting and no evil or sligthly bad attitude.. except one person
everyone is acting with behavior like english gentlemen drinking together a cup of tea
Oh no! not at all. I would in fact encourage you.However, some posters are amusing me. I am not saying anything to you or Arabs but just reminding to have kind intentions and have serious discussion to preserve and multiply resources for mutual benefits.
Regards
Blacklight
BANNED
- Joined
- Apr 9, 2017
- Messages
- 2,490
- Reaction score
- 10
- Country
- Location
@Slav Defence @Horus this is a troll thread created by an Arab-obsessed troll and a duplicate thread since there already exists a thread about the Saudi Arabian economy and this thread is only created based on distorted information and only created with trolling in mind as can be seen by the user history of the thread starter and his comments.
You need to address the baseless rhetoric with facts, and then move on. Stooping to their level only achieves a ban, and hence unabated senseless regurgitation by them.
Given that there are no Arabs left on this forum, a new strategy from your end would be pertinent.
Best Wishes!
P.S. Being Pakistanis we are all very well aware of what IMF is, and whose agenda it serves. So dont worry about what they say, we all know how much "Gospel truth" they propagate.
Oh no! not at all. I would in fact encourage you.However, some posters are amusing me. I am not saying anything to you or Arabs but just reminding to have kind intentions and have serious discussion to preserve and multiply resources for mutual benefits.
Regards
Im at times serious and times not so serious, the reality is that our arab friend here tried to project something very different from the reality and a good example is post no. #51 where wrong facts, wrong numbers and alltogether a very different reality was written. This is already the basis for not so serious discussions because when someone tries to project lies trough and trough to make himself look better- even tho nothing from it is a truth then this becomes problematic, there are people who would have believed him, if I didnt refute his questionable claims for example and if he was still here, he would probably start to go on a rampage in this thread
Similar threads
