Saudi dominance of oil market to fade by 2020

Ali

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.

All comments are subject to approval before appearing

Features & Analysis
Dubai's smart palm tree technology revealed

Dubai's smart palm tree technology revealed

Smart Palms harness the sun's energy to allow people to look...

Decision time looms for Saudi on nuclear power?

Decision time looms for Saudi on nuclear power?

As other countries push ahead with their plans for conventional...

1
With crude at $50, oil firms fear deeper crisis than in 1980s

With crude at $50, oil firms fear deeper crisis than in 1980s

After slashing spending by $180 billion to deal with one of the...

Most Discussed