Interpreting Middle East Economic News and Analyzing Market Trends

Category: Saudi Arabia

Another sign that the situation in Saudi Arabia is getting out of control

As if the world needed another sign that life in Saudi Arabia is miserable for millions of Saudis (not to mention foreign laborers).  Here’s a story from Al Arabiya:

 

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Proverty in Saudi Arabia: The number of poor keeps growing

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It’s well-known in the Gulf that if you are rich in Saudi Arabia you are very very rich, but not many know that if you are poor in Saudi Arabia you are very very poor.  Unlike the rest of the oil exporting countries in the Middle East, Saudi Arabia is somewhat of an anomaly because it’s social welfare/benefit system is not as generous as say, Kuwait or the UAE, and not even close to Qatar.  One of the main reasons is because Saudi Arabia has a much larger population than the rest of the Gulf.  With a population of 27 million, it’s more than double the rest of the GCC countries put together.  As such, solving it’s going poverty problem is not an easy challenge.

 

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World’s top oil exporter set to import record amount of diesel

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Source:  The Telegraph

Saudi Arabia, the world’s top oil exporter and key OPEC member, is set to import a record amount of diesel fuel as local demand continues to rise.  This is nothing new for Saudi Arabia or the rest of the oil exporting countries.  These countries face two issues, which they have been slow to address; above average energy consumption and slow investment into expanding local refining capacity.

 

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Saudi Arabia’s decision to tax expat labor will prove to be a bad decision down the road

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Photo: Construction Week Online

  Saudi Arabia’s decision last year to impose a levy of SR 2,400 ($640) per year, per expat worker, will prove to be a very poor decision in the years to come.  The main justification for this levy is to discourage Saudi companies from bringing in low skilled labor and help reduce the rising unemployment problem in the country.

 

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US shale ‘revolution’ over-hyped as Saudi Arabia considers getting in the game

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Source: Global Research

Not a week goes by without another exciting story about the shale revolution taking place in the US and how it’s going to change the world.  There is also talk of the US becoming in independent for the first time in decades.  However, a closer look at this revolution and you will see that it’s all hype.

 

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