As oil prices plummet, media reports give the impression that Saudi Arabia is comfortable with the situation. The International Monetary Fund (IMF) report released in October urged Gulf states, led by Saudi Arabia, to reform their economies, cut their spending and government support, create jobs in the private sector and address their domestic energy consumption. knowing that Saudi Arabia had stopped the exportation of 1 million barrels of oil during the past five years.
However, the IMF is simply ignoring the elephant in the room, exemplified by the Saudi social contract. Oil accounts for approximately 90% of the state's income, supporting the entire Saudi economy. In Saudi Arabia, the rentier state is the guarantor of political stability. Government projects constitute the backbone of the economy and ensure the income of the wealthy classes as well as well-paid jobs for low- and middle-income classes. On the other hand, the state is the ultimate arbiter of the distribution of wealth.