Saudi dominance of oil market to fade by 2020


@ali, sorry I just posted a comment complaining about the lack of reaction!
You are essentially right, well you forgot the 3rd option that is bury your head on the sand and deny, deny, deny
However I don't think option 1 needs to be traumatic, it will be tough, and it will test the allegiances of people, but it is the only sustainable alternative. I think Oman has moved farther down that road, even if out of necessity, and it offers a more balanced path
The big question, specially in Saudi is to which point certain groups are willing to reduce their privileges in order to maintain stability. I think for the smaller countries (specially Qatar and UAE) it should be easier as they have a smaller population, and higher resources per capita. What I fail to see is the willingness to change on a personal level and accept that once you move down that road some people will thrive while others will not

I may certainly be wrong, as my experience is always as an outsider


A nice piece, well documented and touching on what should be a critical issue. Surprisingly (or maybe not) no comments.
That says a lot.


Social spending will certainly impact the government's abilities to meet its financial obligations as oil prices or reserves take a dip. That leaves the government with two options:1) cut social spending and force people to depend on themselves, maybe pay taxes as well and 2) continue with the current commitments of social spending and find alternatives to fund deficits.

The first option is certainly going to ignite the public and call for demonstration while the 2nd option will aggregate the burden on public finance and eventually would force the government to take measures such as currency devaluation and other unpleasant quick fixes. This in turn will ignite further public anger and demonstration.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Features & Analysis
Back in business

Back in business

Iran’s tankers are back on the oceans as sanctions on the Islamic...

A new future for Saudi Arabia?

A new future for Saudi Arabia?

The vast Wadd Al Shimal phosphate mine in the north of Saudi...

Will shale shake the Middle East?

Will shale shake the Middle East?

The debate over shale’s impact on the GCC continues. Will this...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams