Economic security

How much power does Saudi Arabia wield over the global economy?

Up until Saudi journalist Jamal Khashoggi's killing on October 2, the Saudis were on a charm offensive - building brand new megacities, investing in tech start-ups and letting women drive.

The world's biggest oil exporter did everything it could to convince the world it was serious about change, and investor confidence was growing. This plan for the future was the brainchild of Crown Prince Mohammed bin Salman who was feted as a reformer.

But then Khashoggi was killed and now Saudi Arabia and its crown prince are facing international scrutiny. At an investment conference this week the crown prince rejected any idea his economic ambitions would be curtailed. But as things stand Saudi Arabia's greatest strength, oil, is also its greatest weakness.

So, how seriously should the world take Saudi threats to curtail oil output and how much influence does it really have over the global economy?

Saudi oil is "actually quite important, particularly in the short-run," according to Chris Garcia, CEO of Vicar Financial and former deputy director of the US Department of Commerce under US President Donald Trump. "This is why when we look at some of the potential retaliation tactics that the Saudis have threatened, we have to take them seriously."