“The $2 Trillion Project to Get Saudi Arabia’s Economy Off Oil” (Peter Waldman, Bloomberg)
“‘From the first 12 hours, decisions were issued,’ says Prince Mohammed. ‘In the first 10 days, the entire government was restructured.’ He spoke for eight hours over two interviews in Riyadh that provide a rare glimpse of the thinking of a new kind of Middle East potentate -- one who tries to emulate Steve Jobs, credits video games with sparking ingenuity, and works 16-hour days in a land with no shortage of sinecures. Last year there was near-panic among the prince’s advisers as they discovered Saudi Arabia was burning through its foreign reserves faster than anyone knew, with insolvency only two years away. Plummeting oil revenue had resulted in an almost $200 billion budget shortfall -- a preview of a future in which the Saudis’ only viable export can no longer pay the bills, whether because of shale oil flooding the market or climate change policies. Historically, the kingdom has relied on the petroleum sector for 90 percent of the state budget, almost all its export earnings, and more than half its gross domestic product.”
“‘From the first 12 hours, decisions were issued,’ says Prince Mohammed. ‘In the first 10 days, the entire government was restructured.’ He spoke for eight hours over two interviews in Riyadh that provide a rare glimpse of the thinking of a new kind of Middle East potentate -- one who tries to emulate Steve Jobs, credits video games with sparking ingenuity, and works 16-hour days in a land with no shortage of sinecures. Last year there was near-panic among the prince’s advisers as they discovered Saudi Arabia was burning through its foreign reserves faster than anyone knew, with insolvency only two years away. Plummeting oil revenue had resulted in an almost $200 billion budget shortfall -- a preview of a future in which the Saudis’ only viable export can no longer pay the bills, whether because of shale oil flooding the market or climate change policies. Historically, the kingdom has relied on the petroleum sector for 90 percent of the state budget, almost all its export earnings, and more than half its gross domestic product.”
President Obama said on Thursday that the United States would continue to enhance security cooperation with its allies in the Persian Gulf, while encouraging them to carry out domestic reforms and bolster their ability to defend themselves. – New York Times
President Barack Obama tried his best to paper over differences between his administration and Saudi Arabia on Thursday as he concluded a two-day summit in Riyadh with the heads of six Persian Gulf countries. But the growing chasm between Washington and the oil-rich Sunni monarchy — inflamed by a fresh wave of criticism from lawmakers of both parties — overshadowed the summit’s scripted displays of camaraderie and unity. – Foreign Policy’s The Cable
A Senate Democrat on Thursday warned the Obama administration against providing increased military firepower to Saudi Arabia in order to smooth over relations following the nuclear agreement with Iran. – The Hill
A U.S. citizen who had been sentenced in Bahrain to 10 years in jail in 2013 has been granted a royal pardon and was freed on Thursday after paying a fine, he and his lawyer said. - Reuters
Talks aimed at ending Yemen's war opened in Kuwait on Thursday, with Kuwait's top diplomat appealing to both sides to "turn war into peace" after more than a year of conflict which has killed more than 6,200 people and caused a humanitarian crisis. - Reuters
Lee Smith writes: Our partners in the Middle East and elsewhere must think that Washington has lost its mind. The reality is worse—America is not able or willing to lead at this point because for the last seven years we've been governed by a man consumed with contempt for the rest of the world, and especially for America's allies. – The Weekly Standard
David Daoud and David Weinberg write: The religious messages Saudi Arabia promotes at home and abroad have implications for international security, whether by helping to radicalize Muslims in places such as Belgium or through intolerant material in official textbooks. – WSJ’s Think Tank
President Barack Obama tried his best to paper over differences between his administration and Saudi Arabia on Thursday as he concluded a two-day summit in Riyadh with the heads of six Persian Gulf countries. But the growing chasm between Washington and the oil-rich Sunni monarchy — inflamed by a fresh wave of criticism from lawmakers of both parties — overshadowed the summit’s scripted displays of camaraderie and unity. – Foreign Policy’s The Cable
A Senate Democrat on Thursday warned the Obama administration against providing increased military firepower to Saudi Arabia in order to smooth over relations following the nuclear agreement with Iran. – The Hill
A U.S. citizen who had been sentenced in Bahrain to 10 years in jail in 2013 has been granted a royal pardon and was freed on Thursday after paying a fine, he and his lawyer said. - Reuters
Talks aimed at ending Yemen's war opened in Kuwait on Thursday, with Kuwait's top diplomat appealing to both sides to "turn war into peace" after more than a year of conflict which has killed more than 6,200 people and caused a humanitarian crisis. - Reuters
Lee Smith writes: Our partners in the Middle East and elsewhere must think that Washington has lost its mind. The reality is worse—America is not able or willing to lead at this point because for the last seven years we've been governed by a man consumed with contempt for the rest of the world, and especially for America's allies. – The Weekly Standard
David Daoud and David Weinberg write: The religious messages Saudi Arabia promotes at home and abroad have implications for international security, whether by helping to radicalize Muslims in places such as Belgium or through intolerant material in official textbooks. – WSJ’s Think Tank
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