Page 17 - Trends

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to join the GCC. The bombings and ci-
vilian casualties will mean damage and
civilian deaths will mean continuing
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men shows no signs of resolution in the
short-term, meaning Saudi Arabia fac-
es continuing expense and enmity. And
it is high time to reach on an amiable
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The Kingdom has also taken losses
in Syria. “They invested very heavi-
ly and transferred weapons and paid
insurgents and got basically nothing,”
Kubursi says, pointing out that the Syr-
ian army is increasing its control and
encroaching on rebel-held areas. At this
particular juncture, the country has two
choices, neither of them very appetiz-
ing, according to Kubursi.
“They can pull get out and cut their
losses, or remain embroiled and lose
more,” he explains.

Finding the answers
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more solutions to falling oil prices and
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tion than at present.
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not enough time has elapsed to grasp
whether it will eventually become suc- Politically, the full fallout continues from the arrests last November of more
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The new taxes will boost non-oil rev- than 200 prominent Saudi princes and businessmen on corruption charges.
enues but, at the same time, the govern-
ment plans to boost expenditures while DSSUR[LPDWHO\ SHUFHQW RI H[SHQGLWXUHV ´, KDYHQ·W VHHQ WKH NLQG RI ORFDO «
DFKLHYLQJ D EDODQFHG EXGJHW E\ go to government salaries. driving economic growth and employ-
Within the present outlook, the combina- Notwithstanding the eventual reso- ment.” Also unclear is the length of time
tion may not work. OXWLRQ RI WKHVH GLIÀFXOW GHFLVLRQV WKH necessary for Crown Prince Mohammed
´,I \RX ORRN DW WKHLU SODQV WR DFKLHYH country faces several uncertainties, in- bin Salman to complete his corruption
D EDODQFHG EXGJHW E\ WKH\ SODQ cluding its business relationships with FUDFNGRZQ VXIÀFLHQWO\ WR LQFUHDVH WKH
to increase expenditure every year un- outside companies. comfort level of foreign multinationals a
WLO µ *ULIÀWKV VD\V ´7KHLU SODQ WR “The biggest uncertainty to me is PDMRU NH\ WR WKH .6$·V DELOLW\ WR GLYHUVLI\
balance the budget depends on rising oil whether they can continue to invest in the the economy.
prices and oil will continue to be a very kind of ecosystem [necessary] for doing No less important is the fact that these
large part of government revenue for the EXVLQHVV LQ WKH NLQJGRP µ *ULIÀWKV VXJ- uncertainties include to what extent the
foreseeable future.” gests. This means making areas such as population will accept the new taxes
The new revenues will help but, at this regulations and legal infrastructure more DQG KRZ ZHOO WKH JRYHUQPHQW·V VWLPXOXV
time, the target of a balanced budget still responsive and transparent as the state SDFNDJH ZLOO ZRUN ,WV WKH SHUIHFW ZDLW
depends on rising oil prices. Meanwhile, continues to evolve. and watch situation.

February 2018 | TRENDS 17