The Public Investment Fund is supposed to be Saudi Arabia’s sovereign wealth fund, but the prince, who heads its board, runs it like his own business. In April, it acquired 129 square miles of state land for a sports and entertainment city. In August, it announced plans for a tourist resort bigger than Belgium. And in October, Prince Mohammed unveiled Neom, his $500 billion robot city, at an international conference.
.. Far from diversifying wealth, he seeks to centralize it in his hands.
.. the Saudi economy dropped into recession more sharply than predicted in the last quarter. The gross domestic product dipped 0.7 percentin 2017, substantially down on pre-purge predictions of growth of 0.1 percent, and worryingly below population growth of 2 percent.
.. Saudi Arabia’s ranking on the World Bank’s ease of doing business index has fallen from 26 in 2014 to 92 in 2017. Unemployment continues to increase, in part because of the influx of women into the job market.
.. A direct sale to Chinese state-owned oil companies is also being mentioned.
.. Investors and neighbors crave predictability, stability and the confidence that comes with a sound regulatory system. All three are what made Dubai. Properly carried out, such a system would please bankers who might welcome the chance to retrieve debts or land from princes that act like robber barons.
.. A new House of Lords would lessen the risk that wounded egos will spawn an opposition. Subject to his elders’ scrutiny, the crown prince might be more prudent about spending money, particularly on defense and security, which documents indicate was 43 percent over budget in 2016.
.. For now Prince Mohammed is offering more personal liberty and relief from the scowls of the religious police as compensation for the introduction of taxes.
But as Abdullah, the previous king, recognized, more taxation — whether direct or indirect — will stoke demands for broader representation.