Dawn to dusk, Dust to Dust,
even the finest of them, time will rust.
It is 2030 and you are reading this to reminisce about the historical shake up in the ‘desert kingdom’. So how did it happen? How did one of the most richest (in terms on per capita GDP) oil-selling nations of the Middle East which bank rolled their excesses and doled out cheap oil, free education and no tax regime to their citizens became a paranoid cost-cutting, privatising, divesting, culling, mulling pygmy state.
It can be simplified as follows:
2008 – 2020 BIG Global Financial crisis
Ensuing global culls in productions and hence a demand for all basic raw-materials
Saudi Arabia has its major revenue from Oil…but now oil prices are falling…oh they are from $130 (2014) a barrel to $30 now (Jan 2016). And we have to keep producing to get these cheap shale oil American companies out of business. Oh what a tragedy…
And then, Saudi does some ironic things…raising prices of oil to its own citizens while it sells oil to the rest of the world…culling government support programs for the citizens, putting more taxes on tobacco.
Meanwhile, this guy, who is the second in command of the country and the heir to the throne after his daddy is covertly engaging in international operations to keep neighbours like Yemen, Syria and Libya in a Limbo.
And these days we have news that they are selling out part of their biggest asset, the Aramco company, to the public…means they are listing this company on the international stock exchanges around the world to get money and share ownership from general public, institutional investors, etc.
The beauty and significance of Aramco is that its value is roughly estimated to be $10 trillion. (in perspective, GDP of the USA in 2013 was around $16.5 trillion).
So, that’s how it all happened. Poor leadership, bad foresight, inadequate planning and some unlucky shots…the kingdom has changed forever.