Lengthy Oil Slump Could Force Saudi Arabia’s Hand on Economic Reforms

Lengthy Oil Slump Could Force Saudi Arabia’s Hand on Economic Reforms
Saudi Arabia's Minister of Petroleum and Mineral Resources Ali Ibrahim Naimi at the 10th Arab Energy Conference, Abu Dhabi, United Arab Emirates, Dec. 21, 2014 (AP photo by Kamran Jebreili).

Editor’s note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries.

In a recent interview with The Economist, Saudi Arabia’s deputy crown prince, Mohammed bin Salman, talked about the kingdom’s plans to roll out avalue-added tax, as well as the possibility of privatizing Aramco, the state oil company, as ways to increase non-oil revenues in the face of the drop in global energy prices. In an email interview, Robert Looney, distinguished professor in the Department of National Security Affairs at the Naval Postgraduate School, discusses the economic and political impact of the oil slump on Saudi Arabia.

WPR: What impact has the ongoing oil slump had on the Saudi budget and public spending, and what are the implications for economic and political stability?

Keep reading for free!

Get instant access to the rest of this article by submitting your email address below. You'll also get access to three articles of your choice each month and our free newsletter:

Or, Subscribe now to get full access.

Already a subscriber? Log in here .

What you’ll get with an All-Access subscription to World Politics Review:

A WPR subscription is like no other resource — it’s like having a personal curator and expert analyst of global affairs news. Subscribe now, and you’ll get:

  • Immediate and instant access to the full searchable library of tens of thousands of articles.
  • Daily articles with original analysis, written by leading topic experts, delivered to you every weekday.
  • Regular in-depth articles with deep dives into important issues and countries.
  • The Daily Review email, with our take on the day’s most important news, the latest WPR analysis, what’s on our radar, and more.
  • The Weekly Review email, with quick summaries of the week’s most important coverage, and what’s to come.
  • Completely ad-free reading.

And all of this is available to you when you subscribe today.

More World Politics Review