Bloomberg’s Alaa Shahine reports on Saudi Arabia’s great remake and modernization challenges.
Saudi Arabia’s reform process as outlined in 2016 with the announcement of Vision 2030, gave the country up to 15 years to achieve these aims. Shahine argues that if the country doesn’t find a balance between fiscal challenges and economic modernization, then it will struggle to win investor confidence.
He said that recent promises to slow down austerity measures, coupled with a more gradual process of raising petrol and energy prices, would remind everyone of the old Saudi. He awaits to see if the PIF, the Saudi soverign wealth fund, will be capable of reinvigorating the slow growth of the non-oil economy, which was a result of the country’s spending cuts as a reaction to low oil prices.