Saudi Arabia is grappling with a projected budget deficit of 101 billion riyals for the upcoming fiscal year, an unprecedented financial strain attributed to the policies of Crown Prince Mohammed bin Salman. This alarming economic shortfall highlights the kingdom’s struggle to reconcile massive spending on ambitious yet unproductive ventures with a mounting public debt that is expected to reach 1.3 trillion riyals by 2025.
Since ascending to power, bin Salman has embarked on a spending spree, directing the country’s wealth toward grandiose projects and image-building exercises. Critics argue these expenditures, while garnering global attention, fail to address the urgent needs of the Saudi population. Instead, they have exacerbated poverty, unemployment, and economic inequality within the kingdom.
One of the most contentious moves has been the Crown Prince’s decision to sell off public healthcare assets. Over the next five years, Saudi Arabia plans to privatize over 1,000 hospital beds, 200 pharmacies, and 20 medical centers. Earlier this year, a prominent hospital was sold for $763 million, signaling the start of a trend that many fear will limit access to affordable healthcare. These sales come at a time when the country is already struggling to meet basic health and welfare needs for its citizens, with many relying on charitable organizations for sustenance.
Adding to the controversy, bin Salman has channeled billions of dollars into extravagant entertainment ventures. Among these is a $10 billion “Zombie City” theme park in Riyadh, part of the kingdom’s push to position itself as a global entertainment hub. However, these projects have faced widespread criticism for their irrelevance to the average Saudi citizen, who is more concerned with rising living costs and economic instability. Reports indicate that many Saudis cannot afford entry to these lavish attractions, further fueling resentment toward the Crown Prince’s spending priorities.
The Crown Prince’s financial mismanagement has extended to international investments. Recently, bin Salman allocated $51 billion to a Japanese firm to oversee his private investments. Critics view this as a reflection of his mistrust in local firms and a sign of misplaced priorities at a time when the country is grappling with significant economic challenges.
The ambitious Vision 2030 initiative, which aims to diversify the Saudi economy away from oil dependency, has also contributed to the nation’s financial woes. Projects under Vision 2030 have faced delays and scaling back due to funding shortages. Finance Minister Mohammed Al-Jadaan acknowledged the challenges in securing sufficient financing, which has necessitated borrowing and the reallocation of resources. However, these measures have not been enough to bridge the growing budgetary gaps.
Despite its vast oil wealth, Saudi Arabia is witnessing growing economic inequality. Over 13,000 families in Riyadh alone rely on charity to meet their daily needs. Critics argue that bin Salman’s policies, which prioritize global prestige over domestic welfare, have left the nation ill-prepared to address the challenges faced by its citizens.
As public debt rises and essential services like healthcare face privatization, many Saudis are questioning the sustainability of the Crown Prince’s economic strategies. Observers warn that the burden of repaying these debts will fall on future generations, jeopardizing the country’s long-term stability.
Bin Salman’s critics accuse him of prioritizing his international image over the needs of his people. With a growing budget deficit, rising poverty, and public discontent, Saudi Arabia stands at a crossroads. Whether the Crown Prince’s vision will lead to a prosperous future or deepen the nation’s economic struggles remains a question that looms large over the kingdom.
