Economists refer to a group of factors that negatively affect the economies of countries. The first of these factors is the phenomenon of institutional uncertainty, which means the uncertainty of governments of countries in the decisions they take regarding some issues.
The Saudi Crown Prince’s policy in dealing with the issues under the pretext of diversifying its economy and protecting its sovereignty is a clear example of this.
Looking at the reality of the Kingdom, including the blockade on Qatar, then withdrawing from this decision, the gains and losses from such decision; one can reach the conclusion that this decision was not thoroughly studied, and this is not how politics between countries work.
Vision 2030 of MBS on which he spent millions of dollars on promoting it, especially the NEOM project, the largest of his vision projects, follow a plan of unstudied decisions, with unclear goals, and therefore that vision was not carried out and a large part of its implementation is still unfinished, for many reasons, the most important of which is the cost, and the imaginary vision and goals.
The war in Yemen, led by Saudi Arabia, and for which it gave the former US President billions in order to remain silent over its record of violations there, resulted in the loss of billions of dollars with which it destroyed Yemen.
Currently, after MBS failed in Yemen which affected the position of Saudi Arabia and threatened its economy due to the strikes directed by the Houthis at Aramco, the Saudi oil company, show that the country’s decisions regarding Yemen are ill-considered decisions, and the leadership in Saudi Arabia does not have the slightest degree of certainty in it.
All these examples prove that Saudi Arabia no longer has political power, as its decisions are controlled by a young teenager who does not have the political experience and is not allowing those with experience to participate in political decision-making power.
The leadership uncertainty is applied to the majority of the decisions taken by the bin Salman government, which always results in countless economic losses.
By reviewing Saudi Arabia’s record in politics, its relationship with its neighbors in Yemen, the rest of the Gulf states, Iran, Turkey, and others, is in decline, as it takes unwise hostile decisions that harm the history and position of Saudi Arabia.
As for its economic record, it is the first time in its history where Saudi Arabia faces all these economic losses with a budget suffering from deficit under the leadership under MBS.
