Middle East

Saudi Arabia On The Brink

The persistence of low oil prices is wreaking havoc in oil-producing nations, and no country is as vulnerable to the crude crunch as the Kingdom of Saudi Arabia. With almost three quarters of the government’s budget originating from oil revenues, the prolonged plunge in prices is a mortal threat to the Saudi monarchy.

Leaders are scrambling to secure a prosperous and stable future for the country. But are these maneuvers too late?

The blunt reality is that Saudi Arabia has grown accustomed to high oil prices. At their current level, the regime is facing a $100 billion budget deficit. The gap has forced the Kingdom to cut subsidies and secure its first outside loan in over a decade. Popular sentiment is rapidly shifting as citizens who once enjoyed cushy jobs are facing uncertain futures. Given the state employs two-thirds of native workers and youth unemployment is approaching 30 percent, the risk of social unrest is rising.