In a bid to position itself as an emerging economic power, Saudi Arabia, in collaboration with the International Monetary Fund (IMF), is hosting the AlUla Emerging Markets Conference. Riyadh aims to showcase itself as a rising economic force in the region. However, this event comes at a time when the Saudi economy is grappling with serious challenges, including the IMF’s recent downgrade of Saudi growth projections. This raises crucial questions: is this conference a genuine step toward economic reform, or just another PR stunt to distract from the kingdom’s mounting economic failures?
Lower Growth Forecasts: The Harsh Reality Behind Saudi Propaganda
According to the latest IMF report, Saudi Arabia’s economic growth forecast for 2024 has been significantly downgraded due to plummeting oil revenues, widening fiscal deficits, and the failure of Vision 2030 investments to yield promised returns. Despite Mohammed bin Salman’s pledges to transform Saudi Arabia into a diversified and sustainable economy, recent economic indicators expose the widening gap between grand announcements and actual progress.
Vision 2030: A Mirage of Mega-Projects and a Growing Deficit
When Vision 2030 was first announced, bin Salman promised a tech-driven, tourism-heavy, innovation-led economy. Yet, eight years later, Saudi Arabia remains far from achieving these goals. Instead of emerging as a global investment hub, the kingdom is witnessing:
- Capital flight as foreign investors retreat due to a lack of economic stability.
- Stalled mega-projects like NEOM, Qiddiya, and The Line, which continue to face funding shortages and execution delays without delivering meaningful returns.
- A rising fiscal deficit, forcing the government to introduce new taxes and cut subsidies, placing additional strain on citizens.
According to Bloomberg, many of the high-profile projects under Vision 2030 remain financially unstable, with no clear strategy for revenue generation. John Peterson, an emerging markets analyst, states:
“Saudi Arabia is throwing billions into grandiose projects with no tangible returns, while youth unemployment is rising, and new taxes are imposed to cover an ever-growing fiscal deficit.”
Economic Conferences as a Smokescreen for Systemic Failures
The AlUla conference is just the latest in a series of Saudi investment summits, designed to rebrand the kingdom as a global business hub. However, previous summits have failed to produce real investment and are widely viewed as reputation-laundering efforts to overshadow human rights abuses and economic mismanagement.
Deteriorating Economy, Rising Living Costs
With the sharp decline in global oil prices, Saudi Arabia is facing a deepening economic crisis that directly impacts its citizens. Despite the kingdom’s vast oil wealth, declining revenues have forced the government to impose austerity measures, increase borrowing, and implement harsh economic policies.
- The value-added tax (VAT) was tripled to 15%, significantly increasing the cost of living.
- The price of essential goods and services has surged, eroding consumer purchasing power.
- Public sector wages have been stagnant, while inflation continues to rise.
While the government claims that these policies aim to ensure “financial sustainability,” the reality is quite different:
- Youth unemployment remains high.
- Foreign investment is declining.
- The economic burden on ordinary Saudis is increasing.
- With a widening deficit and no substantial diversification away from oil, Vision 2030 is failing to create a sustainable economic future.
Selling Investment Amidst Repression and Human Rights Violations
As bin Salman seeks to rebrand Saudi Arabia as a prime investment destination, his regime continues to face global condemnation for gross human rights violations. While the kingdom hosts lavish economic summits, it simultaneously carries out mass arrests, enforced disappearances, and death sentences against activists and dissidents.
A recent Human Rights Watch report confirms that Saudi Arabia is:
“Using mega-projects and investment campaigns as a distraction, while continuing its crackdown on human rights, free speech, and civil liberties.”
Analyst David Hearst further highlights:
“Investment requires legal stability and transparency. But in Saudi Arabia, investors could find themselves jailed overnight if they challenge the regime’s interests. How can global businesses trust a country that doesn’t even respect the rights of its own people?”
This stark contradiction between Saudi Arabia’s economic ambitions and its authoritarian practices makes it a high-risk environment for investors. No economy can thrive in a climate of fear, censorship, and legal unpredictability.
Can PR Campaigns Conceal Economic Collapse?
As Saudi Arabia prepares to host the AlUla Emerging Markets Conference, the real question remains: can flashy conferences and billion-dollar PR campaigns truly mask the kingdom’s deepening economic troubles?
The facts remain unchanged:
- The Saudi economy is faltering.
- Vision 2030 has failed to deliver meaningful progress.
- The fiscal deficit is growing.
- Human rights violations continue to damage Saudi Arabia’s global reputation.
Bin Salman can host as many glamorous summits as he likes, but that won’t change the reality that Saudi Arabia is struggling to achieve genuine economic transformation. Without fundamental reforms, the kingdom risks long-term economic stagnation and increasing political instability.
The question remains: Will Saudi Arabia continue selling illusions through PR conferences, or will it finally confront its economic reality and implement real change?
