Costs of Saudi economic failures show up in electric bills
Saudis are complaining openly about their electricity bills that have doubled overnight, a dire sign for their economic future.
In the lead-up to the Sept. 4-5 G-20 summit in which Saudi Arabia will participate, Deputy Crown Prince and head of the Council for Economic and Development Affairs Mohammed bin Salman arrived in China Aug. 29 for an official two-day visit. His trip came at the invitation of Vice Premier of the People's Republic of China Zhang Gaoli for the purpose of promoting economic integration and trade exchange, which reached $51 billion between the two countries in 2015.
Chinese Ambassador to Saudi Arabia Li Huaxin reiterated on Aug. 29 China’s interest in Salman’s visit and in supporting the kingdom’s Vision 2030, a plan prepared by the consulting firm McKinsey & Company that calls for nonoil investment expansion. During the visit, 15 agreements were signed in the sectors of energy, oil storage, minerals and housing.
Salman’s foreign visits succeeded in attracting international interest in the kingdom’s Vision 2030 and in convincing several industrial states like Russia, France, the United States and Japan of the usefulness of economic partnership with Saudi Arabia. His efforts have resulted in several investment agreements with these countries this year. Ambitious and progressive economic promises accompanied the introduction of Vision 2030, including cutting unemployment rates from over 11% to 7% and climbing to a top position in the Global Competitiveness Report.
Despite the media campaign praising Vision 2030, many Saudi citizens are worried by the state imposing new tariffs and increasing old ones. There is also a financial crisis that has hit several companies operating in Saudi Arabia, caused by the general budgetary deficit and the decline in governmental spending on development projects.
