Saudi Arabia Plans USD2 Trillion Sovereign Wealth Fund

The Indian Panorama

26 April 2016

While an expanded Saudi defense industry may provide competition to USA contractors, the Obama administration has urged Saudi Arabia and other Gulf Cooperation Council members to develop their own defense capabilities rather than depending on the U.S.as much as they have in the past.

“Shifting from an oil-based economy to something different is very hard”, said Gregory Gause, a professor at Texas A&M University.

“We can achieve this vision even if oil is lower than US$30”.

Presenting “Saudi Arabia’s vision for 2030”, deputy crown prince Mohammed bin Salman said the kingdom’s huge oil wealth was now holding the country back. But in nearly the next breath, he said that it’s nearly impossible for oil prices to fall below $30 because of global demand.

That would mark a big change.

… “The foremost challenge Mohammed bin Salman faces over time is the inevitable need to restructure the Al Sauds’ relationship with the Wahhabis”, said James Dorsey, a senior fellow in global studies at Nanyang Technological University in Singapore.

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Last updated on 26/04/2016