Saudi Vision25 Apr 2020 08:48
MikeGP -
There are some more up to date journalist ramblings on the possible oil price impact on the socio-economic plans. The simple claim made by DHC, which I reject, is that a budgetary deficit will mean those plans are suddently csncelled, unimportant and unnecessary. Nothing could be more wrong. Indeed the Saudi Finance Minister is committed to borrowing to fund any shortfall. The picture is clearly more nuanced than it was before, for obvious reasons, and so it is likely that some things will be impacted - e.g. projects with least socio economic.impacts, but broadly one must remember that this whole plan was born from the last oil price crisis, and those reasons will have solidified now:-
"Arguably, Vision 2030 was catalyzed by the nearly 50% global price drop in oil in 2016, bringing it from $100.00 a barrel to $50.00 and emphasizing the cruciality of economic diversity. Its urgency was further highlighted when COVID-19 and its unintended economic consequences brought oil prices down to $30.00 on March 20th, the lowest price since 2003. Since this article was published, oil prices have dropped below zero. This fluctuation combined with record-breaking low oil rates is further pressing the need for Saudi Arabia to develop additional and reliable streams of income. https://www.mironline.ca/how-covid-19-will-impact-saudi-arabias-patronage-based-economy/
No-one is saying Covid 19 won't make things a little.bumpy but a certain 'you know fool' should have spoken to William Jackson, Capital Economics:
"Even if oil prices were to fall to $25pb, Saudi Arabia might be able to finance a current-account deficit for up to a decade " article: https://www.euromoney.com/article/b1kwsyr21vw5qs/saudi-arabias-vision-2030-faces-its-biggest-test?copyrightInfo=true