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    Can Saudi Arabia Balance Social and Economic Change?

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    The World Bank issued a stark warning in its 2018 outlook for the Saudi economy: “The Kingdom likely faces a looming poverty problem.” The bank has since noted in its 2019 and 2020 outlooks that “while no official information is available on poverty, identifying and supporting low-income households is challenging.” Dependent on world oil prices, the curve of gross domestic product (GPD) per capita in Saudi Arabia was never a straight line upward. Instead, it ebbed and flowed.

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    In one example, Saudi GDP per capita dropped by almost half from a peak of $17,872 in 1981 to $8,685 in 2001, the year in which 15 Saudi middle-class nationals constituted the majority of jihadists who flew airplanes into New York’s World Trade Center towers and the Pentagon in Washington. It was also the year in which many Saudis struggled to make ends meet amid depressed oil prices and then-King Abdullah’s efforts to introduce a measure of Saudi fiscal restraint. Many people held two to three jobs.

    “Prior to the Gulf War, we didn’t pay rent in student dormitories — now we do,” a Saudi student enrolled in Saudi Arabia’s prestigious King Fahd Petroleum and Minerals University told this writer at the time. “In the past, it didn’t matter if you didn’t complete your studies in five years. Now you lose your scholarship if you don’t. Soon we’ll be asked to pay for tuition. Before the Gulf War, you had 10 job offers when you graduated. Now you’re lucky if you get one,” the student said referring to the US-led reversal of the Iraqi invasion of Kuwait in 1990.

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    “There’s nothing to do here but sit around, watch television and smoke shisha,” added Abdulaziz, one of the student’s friends. “There’s nothing we can do to change things. That’s why we get married early, only to discover that it was a mistake.”

    Saudi GDP per capita has dropped again, although less dramatically, from $23,337 in the year that the World Bank warned about looming poverty to $20,110 in 2020. On a positive note, the bank reports that while “poverty information and access to survey data to measure welfare conditions have been limited,” Saudi Arabia has seen “gains in administrative capacity to identify and support low-income households.” It warned, however, that the middle class could be most exposed to the pains of austerity and fiscal restraint.

    A Different Saudi Arabia

    To be sure, the Saudi Arabia at the turn of the century is not the same kingdom as today. Saudis made up one of the largest contingents of foreign fighters in the Islamic State group that seized territory in Syria and Iraq in 2014. Despite this, Saudi citizens are unlikely to respond to a unilateral rewriting of a social contract that promised cradle-to-grave-welfare and potential economic hardship by drifting toward militancy and extremism at a time that a young crown prince has promised massive change and delivered some.

    Crown Prince Mohammed bin Salman has liberalized social mores, rolled back the influence of ultra-conservative clerics, created greater leisure and entertainment offerings, and enhanced women’s rights and professional opportunities. This forms part of his plan to wean Saudi Arabia off its dependency on oil exports and diversify the economy. He has simultaneously tightened the political aspect of the kingdom’s social contract involving the public’s absolute surrender of all political rights, including freedom of expression, media and assembly.

    In exchange, Mohammed bin Salman’s Vision 2030 reform plan promises, according to the World Bank, to protect citizens from the pain of economic change by “modernizing the social welfare system, redirecting price subsidies toward those in need, preparing and training those unable to find employment, and providing tailored care and support to the most vulnerable citizen.” In doing so, the government has sought to soften the impact of higher energy prices and the tripling of value-added tax and expatriate levy.

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    More than social protections, Vision 2030 is about creating jobs for Saudis in a country where unemployment was 11.7% in the first quarter of this year. In the last three years, the Saudi private sector reportedly created a third of the 1.2 million jobs the kingdom needs to generate by 2022 to meet its unemployment target. The country’s statistics agency said the first-quarter unemployment was Saudi Arabia’s lowest in nearly five years. But the decline was partly driven by people dropping out of the labor force rather than new job creation.

    Jobs for Saudis

    In May, Mohammed bin Salman asserted in a wide-ranging interview that “we have 200,000 to 250,000 people getting into the job market each year and public sector jobs are limited.” Taking tourism as an example, he said the development of the industry would create 3 million jobs, 1 million of which would be for Saudis who, over time, could replace expats who would initially fill two-thirds of the openings.

    “Once we create three million jobs, we can Saudize them in the future. There are also jobs in the industrial sector and so on,” Prince Mohammed said. He predicted at the same time that the percentage of foreigners in the kingdom could increase from a third of the population today to half in the next decade or two.

    Writing about the changing social contract in Saudi Arabia, Mira al-Hussein and Eman Alhussein cautioned that the government needs to manage rapid economic and social change, in part by providing clearer information to the public. The scholars identified issues involving rights of foreigners versus rights accorded children of mixed Saudi and non-Saudi marriages, the rollback of religion in public life and austerity measures as potential points of friction in the kingdom. “The ramifications of existing grievances and the increasing polarization within Gulf societies … as well as the extensive social engineering programs have pitted conservatives against liberals. Arab Gulf States’ ability to redefine their social contracts without turbulence will depend on their tactful avoidance of creating new grievances and on solving existing ones,” the authors wrote.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      What Will It Take for MBS to Rehabilitate His Image?

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      On April 10, the Saudi Ministry of Defense announced the execution of three soldiers after what it called a “fair trial” in a specialist court. The men were convicted and sentenced to death for the crimes of “high treason” and “cooperating with the enemy.” Aside from the men’s names, no further details were provided.

      Ali al-Ahmed, a Washington-based critic of the regime, tweeted a video — which has not been independently verified — of what appears to be soldiers burning and stamping on a picture of the Saudi crown prince, Mohammed bin Salman (MBS). In the tweet, Ahmed says he was “told this video was behind executing the 3 Saudi soldiers.”

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      Given the opacity of the Saudi regime, the soldiers could have been executed for any number of reasons, such as being involved in the illicit sale of weapons to Houthi rebels in Yemen (the trial and executions were carried out in the military’s Southern Command close to the Yemeni border). Or it may have been a case of lèse-majesté — the burning of the photograph — that enraged MBS.

      If it is the latter, it gives further credence to the image of an unstable and violence-prone leader, whom the CIA blames for ordering the murder of Saudi journalist Jamal Khashoggi in 2018. Try as he might, Mohammed bin Salman cannot put that one crime behind him. He was angered that Khashoggi — at one time a close associate of senior members of the ruling family — had departed from the kingdom and had the temerity to criticize the prince in columns he wrote for The Washington Post.

      Throwing Critics in Prison

      Western businessmen and politicians, anxious to do business with Saudi Arabia, could set aside many of the actions of this unruly and impulsive prince. These include the Saudi-led war in Yemen, which MBS thought he would win in a few weeks but has now entered its seventh year; the blockade of Qatar in June 2017, which did not end until January 2021; the seizure and forced resignation of the then-Lebanese prime minister, Saad Hariri, in November 2017; and the arrest and detention of more than 400 Saudi businessmen and senior members of the royal family, some of whom were allegedly tortured and only released when they signed over companies and surrendered millions of dollars in a mafia-style shakedown.

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      Even the imprisonment of Loujain al-Hathloul, a Saudi women’s rights activist, caused barely a flicker of concern in Western boardrooms and corridors of political power. Hathloul and her family allege that since her arrest in May 2018, she was tortured in detention and subjected to electrocution, flogging, sexual abuse and waterboarding in secret prisons before she was finally brought to trial. Among those responsible for the torture, she claims, was Saud al-Qahtani, a confidante of the crown prince who was heavily implicated in the Khashoggi murder. Hathloul was finally released but under strict conditions in February of this year. The allegations of torture were never investigated by Saudi authorities.

      The arrival of Joe Biden in the White House took away the protection that his predecessor had provided to the crown prince. In February, President Biden released a declassified CIA report on the killing of Khashoggi. He has also withheld arms sales to the Saudis to pressure MBS to end the war in Yemen. Biden has also signaled that human rights issues — having been kicked into the long grass by Donald Trump, the former US president — are now back on the agenda. Thousands of political prisoners are languishing in the Saudi prison system. This includes the scholar and author Salman al-Odah, against whom the public prosecutor is seeking the death penalty, and the aid worker Abdulrahman al-Sadhan, who in March was sentenced to 20 years in prison after being convicted of writing anonymous tweets critical of the regime.

      PR Will Not His Image

      Biden’s stance on Saudi Arabia is a problem for MBS, but just how much of a problem remains to be seen. Biden is, after all, a pragmatist who may, in the end, not exact much of a price on the human rights front before waving through the weapons deal. But with every step MBS takes to rehabilitate his image and rebrand the kingdom as a modern, open society where “moderate Islam” flourishes, he is shadowed by a remarkable and doggedly courageous woman: Hatice Cengiz, the fiancé of the murdered Jamal Khashoggi.

      When MBS attempted to use the Saudi Public Investment Fund (PIF) to purchase Newcastle United, a football club in the UK, Cengiz was there to challenge the takeover bid. It failed, to the great chagrin of the crown prince. When more recently he dangled a $100-million purse to secure the heavyweight fight between Anthony Joshua and Tyson Fury for the kingdom, Cengiz used The Telegraph newspaper to express her anger. “I cannot believe after all this time, and all the evidence showing his guilt, that the Saudi Crown Prince is still being considered as a ‘host’ for such world sporting events, which he is using for political reasons and to clean his image,” she said in a statement. 

      Indications are that Saudi Arabia will host the fight, but MBS may have to pull even more than $100 million out of the PIF to do so. But sports events and expensive PR campaigns will not take away the stain of the killing of Khashoggi. To rehabilitate his image, MBS would have to give justice to Hathloul, drop the charges and release Odah, end the unjust incarceration of Sadhan and release thousands of other prisoners of conscience. Mohammed bin Salman would have to take responsibility for his actions and acknowledge his crimes — which he cannot do. 

      What he can and will do is to play for time and hope that Trump or one of his lackeys returns to the White House in 2025.

      *[This article was originally published by Gulf House.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in World Politics

      Mohammed bin Salman’s Shaky Legacy in a Troubled Saudi Kingdom

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      Una Galani is the associate editor of Reuters’ Breakingviews division, which the news agency describes as “the world’s leading source of agenda-setting financial insight.” Last week, Breakingviews published her review of the book “Blood and Oil” by Wall Street Journal reporters Bradley Hope and Justin Scheck.

      The book tells the story of the rise to power of Saudi Crown Prince Mohammed bin Salman. It focuses on his audacious game plan for remodeling the Saudi economy. While presenting MBS, as the crown prince is commonly known, as a reformer ready to break with tradition, the authors reveal the darker side of his character and weigh the significant risks this entails for his own future and that of Saudi Arabia. 

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      Galani seems to go one step beyond the authors’ critical judgment when, in the title of her article, she refers to Mohammed bin Salman as “Saudi Arabia’s sharpest prince.” The epithet appears justified at least in the comparative sense that previous Saudi leaders had a reputation for being seriously dull and plodding. By way of contrast, “sharp” may seem appropriate as a description of MBS. Or perhaps Galani was thinking of the well-sharpened cutting edge of the bone saw that MBS allegedly provided to the hit squad that was sent to Istanbul to dismember journalist Jamal Khashoggi in October 2018.

      Galani writes that “it’s tempting to see [Mohammed bin Salman’s] ruthlessness as a broom to the kingdom’s problems, even as admirable,” but she avoids the temptation and entertains no illusions about his errors and failures. She lists the obvious ones: “a war in Yemen, the role of his close confidantes in the killing of journalist Jamal Khashoggi, the blockade of Qatar, and the effective kidnapping of Saad Hariri, who was Lebanon’s prime minister at the time.” Galani then highlights the fatal character flaw that explains those human disasters, explaining that “the prince’s inability to tolerate dissent and black-and-white view of the world may lie at the root of his multiple misadventures.”

      Here is today’s 3D definition:

      Misadventures:

      A serious and even dreadful crime committed by someone with money and power, just as the misadventure of a citizen with neither money nor power (especially if black) will be deemed a crime worthy of incarceration  

      Contextual Note

      Galani was undoubtedly being ironic when she characterized Mohammed bin Salman’s crimes and brazen assaults on people, nations, colleagues, family and journalists as “misadventures,” to say nothing of human rights advocates who have no place in Saudi society. At another point, she mentions his “adventures in power.” Her image of the crown prince is clearly that of a hyperreal antihero, not far from that of a cartoon character.

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      Galani rightly reserves her judgment of Mohammed bin Salman’s place in history, which she nevertheless predicts will be a “highly disruptive legacy.” At the same time, she points to his failure to achieve his primary non-controversial goal, when she observes that he “hasn’t secured the inward investment needed to underwrite his economic transformation plans.” The simple truth is that Saudi Arabia today finds itself in a deep crisis aggravated by the coronavirus pandemic.

      The image of MBS that emerges from Galani’s review and Hope and Schenck’s book contrasts singularly with the points made last week in an article on Fair Observer by award-winning Iranian journalist Kourosh Ziabari. Seeking to develop a contrast between Saudi successes and Iranian failures, Ziabari believes that “the future Saudi king has undoubtedly scored significant gains both domestically and internationally.”

      Ziabari doesn’t call MBS “sharp,” but he deems him “a strong social reformer.” He cites the “notable steps the crown prince has taken to socially liberalize a conservative country.” He mentions in passing but seriously minimizes the “misadventures” Galani ironically mentions. 

      To justify Mohammed bin Salman as a model to be emulated, Ziabari cites a statistic from May 2018, months before the assassination of Khashoggi. As he recounts it, “more than 90% of young people in Saudi Arabia between the ages of 18 and 24 endorse the crown prince’s leadership.” In terms of journalistic accuracy, Ziabari should have written “endorsed” in the past tense. He may be unaware that the level of “trust” in MBS has since seriously deteriorated throughout the region as a recent Pew poll shows (even if the poll did not sample Saudi Arabia, for the obvious reason that it would not have been allowed to conduct its survey in the kingdom). Recent events have undoubtedly shaken the confidence of a lot of young Saudis.

      Had Ziabari been interested in more recently observed trends, he might have noticed one expert’s assessment in May: “The erosion of the social contract between the rulers and the ruled will lead to serious problems, especially in a tribal society.” The expert in question, Colin Clarke of the Soufan Center think tank, described MBS in these terms: “He’s not the sophisticated operator that he portrays himself to be. He’s less like a businessman or politician and more like a gangster.”

      Historical Note

      Most people acknowledge that 2020 has become a watershed moment in history. The year 2019 now appears to represent an unrecoverable past and 2021 an utterly unpredictable future. This is true everywhere in the world, even in a despotic kingdom ruled with an iron hand by an authoritarian prince with the capacity to imprison or execute at will members of his own family. And yet, Kourosh Ziabari relies on testimony from what now appears to be the distant past to highlight the success of Mohammed bin Salman.

      He approvingly reports that “The New York Times has described the measures [MBS] introduced as ‘Saudi Arabia’s Arab Spring.’” He fails to point out two important facts: that the article was posted in November 2017 — nearly a year before the assassination of Jamal Khashoggi — and, more tellingly, that the author of that article was the comically unreliable, ever mistaken Thomas Friedman, a celebrity writer who still seems to believe the world is flat because US technology and the economic culture associated with it has become the universal parasite of state economies.

      To justify Mohammed bin Salman’s image as a reformist, Ziabari offers several quotes, all of which predate not just the current health and economic crisis, but also the Khashoggi affair. On the basis of those by now ancient remarks, he concludes that MBS has “introduced reforms that are meaningful and important in a troubled region riddled with conflict and the absence of democracy.”

      Skipping forward, he cites as proof of progress the recent decision of the supreme court to abolish flogging, as reported by the BBC. But he neglects to cite the damning conclusion in the same article: “But waves of arrests of every type of dissident under the king and the crown prince – including of women’s rights campaigners – undercut this claim, our reporter says.” 

      Ziabari’s real focus is on Iran, not Mohammed bin Salman. His wish for radical change in Iran makes perfect sense. But suggesting that the model MBS provides might be, as he claims, a “benchmark” would seem to be wishful thinking if not dangerous folly. As a point of comparison, it is historically accurate to call Benito Mussolini and Adolf Hitler modernizing reformers with ambitious programs, who were adored by a majority of their people. But no one today would treat them as role models.

      Concerning Iran, Ziabari is right to hope for a development that might “put an end to decades of hostility with the US and the West.” But, isn’t that exactly what had begun to take place when Barack Obama pushed through the Iran nuclear deal in 2015, which MBS opposed and US President Donald Trump canceled at the first opportunity?

      More realistically, Una Galani offers this assessment: “One positive for [MBS] is that it’s unclear how much of a difference the Khashoggi affair has really made. Investors were quick to mingle again with the prince, albeit somewhat more in private, but still with the hope of extracting funds.”

      Galani recognizes that it’s all about the decisions people with money make, not about the wise policies of political leaders. Ziabari seems to agree when he remarks that Mohammed bin Salman “has a favorable public image in the eyes of Western political and business elites.” Still, success with people who control piles of money should not turn him into a role model.

      *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More