Saudi Crown Prince behind the Destabilization of the Arab Region: Italian Newspaper

2017//Sep. Ibb news18:

The media circulated a report published by an Italian newspaper, which highlighted the extraordinary diplomatic activity witnessed by Saudi Arabia during this period, and the economic situation, which has become a source of state drowning, to the extent that it is impossible for anyone to save them even if Prince Mohammed bin Salman .

In the past few months, the Saudi crown prince has been destabilizing the region, escalating tensions between Saudi Arabia and other countries, including the crisis with Qatar, rejecting any attempt to talk to it, and his last secret visit to Israel.

The newspaper added that Riyadh faces significant diplomatic moves against the backdrop of Washington’s response to its request to establish a front of alliances for the response to Iran

The newspaper pointed out that these regional tensions were not the only factor that led to an economic crisis within the Kingdom. The decline in oil prices has weakened the economy, which is also an expected outcome of the Saudi government’s policy, which relies mainly on oil revenues.

The newspaper added that although Qatar’s economy is affected by the blockade, but the results of his performance is still much better than the figures recorded by Saudi Arabia and the UAE now.

Saudi Arabia’s oil revenues fell from $ 322 billion in 2013 to $ 134 billion in 2016. The kingdom also drained its reserves, withdrawing about $ 116 billion in 2015 and $ 81 billion Dollars in 2016.

The newspaper mentioned that the Saudi government has responded in a traditional manner initially to the various of these unpleasant developments, through the adoption of austerity policy included reductions in wages and pensions and the benefits of public servants and military, accompanied by taxation. For the Saudi people, this crisis has caused them to resent the government.

Saudi Arabia has devoted considerable efforts to offset declining oil revenues, the paper said. But these efforts seem to have had a major impact on public expenditure and social welfare, without compromising military spending

As an alternative plan to get out of the crisis with the slightest damage, Saudi Arabia planned to sell a stake in Aramco to raise more than $ 200 billion and pay off debt to private and institutional investors.

The plan has been counterproductive and has serious consequences for the ruling family. The crisis has cast a shadow over the private sector, with 65 percent of Saudi employees working in the public sector, while oil revenues account for 90 percent of the state treasury.

It should be noted that this crisis has begun to raise the concern of the Saudi people, especially private sector workers, despite reforms initiated by Ibn Salman in their implementation, a few months ago, such as the abolition of all cuts in wages, pensions and allowances.

The new economic policy set by the Saudi crown prince included Vision 2030, which was announced in April 2016, and aims to change the Saudi economy and make it less dependent on oil.

However, the Italian newspaper noted that the new policy, which is dominated by hesitation, will cause a kind of economic stalemate, which will overshadow the large military expenditures of Saudi Arabia, including those that are depleted in the aggression on Yemen, as well as oil prices, the social situation within the state, In the Middle East.

Mersad