The economic trials currently facing Saudi Arabia – a fall in oil prices resulting in budget deficits, wars in Syria and Yemen, and social stresses stemming from increases in gas and other utility prices – in reality present opportunities as much as challenges. This is particularly the case because the government led by King Salman and his son, Deputy Crown Prince Mohammed Bin Salman, has demonstrated a clear understanding of these realities and shows promise in confronting them effectively.
The Saudi Arabian government is essentially looking to restructure its economic system and renegotiate its social contract. Prince Mohammed has let it be known that announcements regarding these changes will begin April 25, with specifics to follow over the following months. More details are thus forthcoming, but so far we know that the new vision involves opening up national wealth to more foreign investment as well as further liberalization, deregulation, and privatization. These changes not only promise greater economic stability to the Kingdom – a key regional and global energy, commercial, and security partner to the United States – but also present an opportunity for American companies to invest reliable long-term capital in a wide range of sectors and regions. The Kingdom seeks to maximize returns from these investments in the way that well-managed businesses do.