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Saudi Arabia in 2024: Positive Expectations Underpinned by Political Will and Economic Capacities

Saudi Crown Prince Mohammed bin Salman and the South Korean President attend a session of the Future Investment Initiative (SPA)
Saudi Crown Prince Mohammed bin Salman and the South Korean President attend a session of the Future Investment Initiative (SPA)
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Saudi Arabia in 2024: Positive Expectations Underpinned by Political Will and Economic Capacities

Saudi Crown Prince Mohammed bin Salman and the South Korean President attend a session of the Future Investment Initiative (SPA)
Saudi Crown Prince Mohammed bin Salman and the South Korean President attend a session of the Future Investment Initiative (SPA)

In an increasingly uncertain world, constants remain our main reference for forecasting the near future. These constants, the factors upon which projections about the future are based, can be summarized into three factors: The first is political will, the primary determinant of the direction a state will take and the objectives it sets.

The second is economic capacity, which enables states to execute their political will and allows them to turn plans into tangible reality.

As for the third factor, it is global changes, which can either positively or negatively affect the implementation of these plans. This is the major cause for uncertainty regarding the future, and state policies play a crucial role in determining it. When applying this perspective to the Kingdom of Saudi Arabia, one can anticipate what the next year might look like.

Saudi Arabia 2023

Starting with political will, domestically, the Kingdom continues to pursue its ambitious Vision 2030 - a pursuit reinforced by the fact that it has achieved targets ahead of schedule. Many of these initiatives have certainly started to bear fruit, especially those that began early in restructuring some of the state's sectors.

The Kingdom did not stop at the programs it launched with the inception of its Vision. It pursued many projects and initiatives in sectors such as tourism, entertainment, and sports. In the latter, the implications of the state's determination to transform plans into reality are particularly evident. In just a few years, the Saudi football league has stolen the spotlight from globally followed football leagues, with the world turning its attention to the Kingdom after the sports sector was restricted and the role of the private sector in the sports system was invigorated.

Since the Vision is comprehensive and encompasses all vital sectors, the interconnections of its different projects and their mutual reinforcement of one another have become evident. For example, recognizing the need for logistical support in the tourism sector, the Public Investment Fund launched Riyadh Air to help the Kingdom reach tourism targets.

This principle of interconnectedness applies to many intersections within the Vision. The progress made in these various sectors is further enhanced by the direct oversight of the Kingdom's senior leadership over national strategies, which ensures the integration and staves off redundancies.

Political will in the Kingdom also has obvious implications for its foreign relations with other countries. For years, the Kingdom has built bridges of communication with the world under the banner of shared interests and the exchange of values. 2022 concluded with the visit of the Chinese President to Riyadh, and these high-level visits continued into 2023, with the Kingdom hosting several major summits, such as the Saudi-African Summit, the Gulf-ASEAN Summit, the Saudi-Caribbean Summit, the Arab Summit, and the Islamic Summit.

The objectives of these summits vary and include political, economic, and cultural aspects. However, the Kingdom takes the same approach to all countries with shared interests and mutual benefits.

The Kingdom also participated in global summits, notably the G20 Summit in India and the Summit for a New Financing Pact in Paris. The impact of these efforts and international visits became apparent when the Kingdom won the bid to host Expo 2030 by attaining the majority of votes from countries and leveraging its strong global relationships.

Economic capacity

The second factor is economic capacity, which may be represented by the state budget for the next year. The Kingdom has continued to expand spending, setting a budget of over 1.2 trillion Riyals, while making conservative revenue projections. The deficit in the state's general budget did not exceed 2 percent, and the government continues to spend on various sectors without making any significant changes, thereby ensuring the continuity of the state's strategies for these sectors and their alignment with the shifts all around us.

While oil revenues decreased due to OPEC's proactive policy to maintain market stability, non-oil revenues continued to increase, reaching 441 billion riyals - about 37 percent of the state's revenues, up from approximately 32.5 percent in 2018.

The Kingdom's capacity to keep up this spending reflects two things: first, it is confident that its economy is solid, and it can sustain this expansionary spending without increasing public debt relative to GDP or depleting its reserves; second, its commitment to pursuing the programs of Vision 2030 and its reassurance about their positive outcomes for the national economy.

Global changes

The third factor is global changes, which can either pose risks or create opportunities for the Kingdom. These changes could be geopolitical, such as the ongoing Russian-Ukrainian war, which affects the stability of oil prices, or changes in the course of Israel’s assault on Gaza, which impacts the entire region, or the Houthi attacks disrupting maritime navigation in the Red Sea.

These changes may also be reflected in the global economy. Global economic growth remains slow due to factors such as inflation, the austere monetary policies adopted by central banks to curb it, and the aftermath of the pandemic, which has had an impact on global supply chains.

Saudi Arabia 2024

The forecasts for the Saudi economy in the next year are generally positive. Fitch predicted that the Saudi economy would grow between 2.6 and 3.3 percent, while Moody's expects growth of around 4.6 percent. The International Monetary Fund (IMF) raised its growth projections for the Kingdom to 4 percent in a short period. The preliminary budget statement from the Ministry of Finance has said that real GDP is expected to grow by 4.4 percent.

These forecasts are driven by several factors, including the events of 2023 and the policies being pursued by the Kingdom. Despite reducing its oil production, the Kingdom's revenues increased this year. This increase was driven by rising non-oil revenues, and these revenues are expected to continue to rise next year, as they have over the past five years.

This increase is due to the increasing role of the private sector, which has been invigorated by various government measures and programs tied to Vision 2030. This approach taken by the Saudi government is to mitigate potential risks in global oil markets. That is among the major axes of Vision 2030, which aims to diversify revenue sources in order to ensure sustainable growth and development in the Kingdom.

The developments seen in 2023 reflect a number of projections. For example, it would not be surprising if Saudi Arabia launched several projects related to its hosting of Expo 2030. These could include determining the location of the event, holding activities such as conferences tied to the Expo, like exhibitions, and strategic plans, and possibly establishing a governmental body tasked with overseeing this major event.

Moreover, we can also expect changes in the Saudi sports sector next year. Given that Saudi Arabia began privatizing clubs by transferring the ownership of four clubs to the Public Investment Fund, this trend could continue next year, with more clubs being transferred to major Saudi companies.

An increase in pace at the Ministry of Sports can also be anticipated in preparation for the expected announcement of its successful bid to host the 2034 FIFA World Cup. This preparation might involve submitting a proposal that includes constructing new stadiums and infrastructure to ensure that the Kingdom provides fans with a distinguished experience and that the sports sector meets the high aspirations that have been set for it.

With Saudi Arabia hosting Expo 2030 and the 2034 World Cup, many infrastructure projects are anticipated. These include ongoing large-scale infrastructure projects in Riyadh, such as King Salman Airport, the Qiddiya Project, King Salman Park, and other significant initiatives. Other cities in the Kingdom that may play an important role, especially in organizing the World Cup, are also expected to see major projects.

Those following the progress being made on Vision 2030 projects can see that it started with several ambitious projects like NEOM, Red Sea, Amaala, and Qiddiya. It began with the launch of numerous projects in Riyadh at the start of Vision 2030, and then we saw other projects in other cities, such as Jeddah Central, Rua Al Medina, and the Sudah and Abha Airport projects.

This might indicate that more projects will be seen in other cities across the Kingdom, whether broad infrastructure projects or sight-specific ones, like agricultural projects suited to cities and their geography and environment. This means that the next year will see the persistence, God willing, of Vision 2030, and the expansion of its initiatives to more Saudi cities that align with their cultural and geographical characteristics.

Flexibility of the Kingdom

The Kingdom has shown itself to be flexible through how it has dealt with economic and political events in recent years. It was not significantly affected by the inflation generated by the pandemic, unlike other countries, and it managed to stave off the negative repercussions of global geopolitical conflicts. Rather, it launched global initiatives aimed at addressing the ramifications of these developments, as it had with its initiatives for global supply chains.

It is not surprising that this approach will continue next year, with precautions being taken to avoid any changes that could negatively impact its economic and strategic interests. The Kingdom will leverage the robustness of its economy and global relationships to find solutions that ensure prosperity, all while maintaining its national project aimed at elevating its strategic and vital sectors.

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25 Years of Unanswered Questions in Iraq

A Saddam Hussein mural is seen in Baghdad in 1991. (Getty Images)
A Saddam Hussein mural is seen in Baghdad in 1991. (Getty Images)
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25 Years of Unanswered Questions in Iraq

A Saddam Hussein mural is seen in Baghdad in 1991. (Getty Images)
A Saddam Hussein mural is seen in Baghdad in 1991. (Getty Images)

People in Iraq often wonder dejectedly: What if Saddam Hussein were alive and ruling the country today? Many will reply with fantastical answers, but Saddam’s era would have responded: Iraq is isolated, either by siege or by a war that he launched or was being waged against him.

Many people cast doubt on whether actual change has been achieved in Iraq since the US invasion in 2003. The invasion ousted the Baath version of Iraq and Saddam was executed in December 2006, leaving questions to pile up over the years with no one having any answers.

After a quarter century, Iraq is accumulating questions. It casts them aside and forges ahead without addressing them. At best, it reviews itself and returns to that moment in April 2003 when the US launched its invasion. Or it asks new questions about the 2005 civil war, the armed alternatives that emerged in 2007, how ISIS swept through the country in 2014, or the wave of protests that erupted in 2019. It also asks new questions about Iran’s influence in the country that has persisted for decades.

The questions are many and none of the Iraqis have answered them.

A US marine wraps the American flag around the head of a Saddam Hussein statue in Baghdad. (Reuters file)

Saddam and the alternative

The September 11, 2001, attacks shook the United States and the entire world. They struck fear in Baghdad. Saddam had that year claimed that he had written a book, “The Fortified Castle”, about an Iraqi soldier who is captured by Iran. He manages to escape and return to Iraq to “fortify the castle”.

The terrifying Saddam and the terrified Iraqis have long spun tales about escaping to and from Iraq. It is a journey between the question and the non-answers. That year, when Baghdad was accused of being complicit in the 9/11 attacks, Saddam’s son Uday was “elected” member of the Baath party’s leadership council. The move sparked debate about possible change in Iraq. Bashar al-Assad had a year earlier inherited the presidency of Syria and its Baath party from his father Hafez.

The US invaded Iraq two years later and a new Iraq was born. Twenty-five years later, the country is still not fully grown up. Twenty-one years ago, on April 9, 2003, a US marine wrapped the head of a Saddam statue in Baghdad with an American flag. The Iraqis asked: why didn’t you leave us this iconic image, but instead of an American flag, used an Iraqi one?

Baghdad’s question and Washington’s answer

As the Iraqis observe the developments unfold in Syris with the ouster of Bashar from power, they can’t help but ask how this rapid “change” could have been possible without US tanks and weapons. Why are the Syrians insisting on celebrating “freedom” every day? They are also astonished at the Syrians who scramble to greet Abu Mohammed al-Golani, who has not yet managed to put this image behind him and fully assume his original identity of Ahmed al-Sharaa. The Iraqis wonder how the Syrians are managing this transition so far without a bloodbath.

They ask these questions because the Iraqis view and judge the world based on their own memories. They keep asking questions and await answers from others instead of themselves.

The Iraqis recall how in August 2003, after four months of US occupation, that the Jordanian embassy and United Nations offices were attacked, leaving several staff dead, including head of the UN mission Sergio de Mello. The Americans arrested Ali Hassan al-Majid, or “chemical Ali”, Saddam’s cousin, and 125 people were killed in a bombing in al-Najaf, including Shiite cleric Mohammed Baqer al-Hakim.

During that bloody month, the Iraqis asked questions about security, forgetting about Saddam’s alternative, democracy and the promised western model. Later, the facts would answer that the question of security was a means to escape questions about transitional justice.

Sergio de Mello (r) and Paul Bremmer (second right) attend the inaugural meeting of the Iraqi Governing Council in Baghdad on July 13, 2003. (Getty Images)

The question of civil war

Paul Bremer, the American ruler of Iraq, once escorted four opposition figures to Saddam’s prison cell. They flooded him with questions. Adnan al-Pachachi, a veteran diplomat, asked: “Why did you invade Kuwait?” Adel Abdul Mahdi, a former prime minister, asked: “Why did you kill the Kurds in the Anfal massacre?” Mowaffak al-Rubaie, a former national security adviser, asked: “Why did you kill your Baath comrades?” Ahmed al-Halabi simply insulted the former president. Saddam recoiled and then just smiled.

Saddam’s opponents left the prison cell with answers that should have helped them in running the transitional justice administration, but they failed.

The following year, Washington appointed Ayad Allawi to head the interim Iraqi Governing Council (IGC) that had limited jurisdiction so that it could be free to wage two fierce battles: one in Najaf against the “Mahdi Army”, headed by Moqtada al-Sadr, and the other against armed groups comprised of “resistance fighters” and “extremists” in Fallujah.

The opposition in the IGC got to work that was already prepared by the Americans. They outlined the distribution of Shiites, Sunnis and Kurds in the country, with historic questions about the majority and minority, and the “oppressed” now assuming rule after the ouster of the “oppressors”.

On the ground, the Ghazaliya neighborhood in western Baghdad with its Shiite and Sunni residents was in store for a bloodbath. On a winter night in 2005, an entire family was massacred and an enfant strangled to death. Soon after, lines drawing the Shiite and Sunni sections of the neighborhood emerged. The popular market became the tense border between the two halves. Two new rival “enemies” traded attacks, claiming several lives.

In Baghdad’s Green Zone, the IGC drew up a draft of the transitional rule. In January 2005, 8 million Iraqis voted for the establishment of a National Assembly.

Meanwhile, different “armies” kept on emerging in Baghdad. The media was filled with the death tolls of bloody relentless sectarian attacks. Checkpoints manned by masked gunmen popped up across the capital.

Those days seemed to answer the question of “who was the alternative to Saddam.” No one needed a concrete answer because the developments spoke for themselves.

Nouri al-Maliki came to power as prime minister in 2006. He famously declared: “I am the state of law” - in both the figurative and literal sense. Iraqis believed he had answers about the “state” and “law”, dismissing the very pointed “I” in his “manifesto”.

Nouri al-Maliki. (Getty Images)

The Maliki question

The American admired Maliki. Then Vice President Dick Cheney had repeatedly declared that he was committed to the establishment of a stable Iraq. Before that however, he had dispatched James Steele - who was once complicit in running dirty wars in El Salvador in the mid-1980s - to Baghdad to confront the “Sunni rebellion”. Steele set up the Shiite “death squads”. Steele was the man in the shadows behind Ahmed Kazim, then interior minister undersecretary, and behind him stood the new warlords.

In 2006, the political process was shaken by the bombing of the Al-Askari Shrine in Samarra. Questions were asked about the “need” to draw up new maps. Shiite high authority Ali al-Sistani said in February 2007 that the Sunnis were not involved in the attack. In July 2013, Maliki denied an American accusation that Tehran was behind it.

In those days, Maliki’s ego was growing ever bigger, and Steele’s death squads were rapidly growing greater in numbers.

The Iran and ISIS questions

Maliki tried to save himself as one city after another fell into the hands of ISIS. On June 9, 2014, as ISIS was waging battles in Mosul, Maliki met with senior Sunni tribal elders based on advice he had not heeded earlier and which could have averted the current disaster.

It was said that he made reluctant pledges to them and a third of Iraq later fell in ISIS’ hands. Sistani later issued a fatwa for “jihad” against the group, which later turned out not be aimed at saving the premier.

Maliki left the scene and Qassem Soleimani, commander of Iran’s Revolutionary Guard Corps’ (IRGC) Quds Force, took over. Successive prime ministers would know from then on what it is like to be shackled by Tehran’s pressure as IRGC officials made regular visits to their offices.

Soleimani reaped what Steele sowed. By 2017, armed factions were the dominant force in Iraq. Running in their orbit were other factions that took turns in “rebelling” against the government or agreeing with its choices.

Today, and after 14 years, Iran has consolidated what can be described as the “resistance playground” in Iraq that is teeming with armed factions and massive budgets.

Protesters in Baghdad’s Tahrir Square in October 2019. (AFP)

The October question

The Iraqis were unable to answer the ISIS question and the armed factions claimed “victory” against the group. Many ignored Sistani’s “answer” about whether the Popular Mobilization Forces (PMF) was there to protect Iraq or just its Shiites.

Exhausted Iraqis asked: “What next?”

Next came Adel Abdul Mahdi’s government in October 2018. It was weighed down by unanswered questions and a year later, thousands of youths took to the streets to protest the state of affairs in Iraq, specifically the dominance of armed groups.

They were met with live bullets. Many were abducted and others were silenced. Abdul Mehdi acquitted the killers, saying instead that a “fifth column” had carried out the bloody crackdown on protesters.

After he left office, some Iraqi politicians were brave enough to tell the truth, dismissing former PM’s acquittal and pinning blame on the factions.

Sistani called for PMF members to quit their partisan affiliations. His demand was left unheeded. Mustafa al-Qadhimi became prime minister in May 2020. He left office months later, also failing in resolving the issue of the PMF and armed factions.

By 2022, everyone had left the scene, but Iran remained, claiming the Iraqi crown for itself, controlling everything from its finances to its weapons.

Question about post-Assad Syria

On December 8, Syria’s Bashar fled the country. Everyone in Iraq is asking what happens next. The whole system in Iraq is at a loss: Do we wait for how Tehran will deal with Ahmed al-Sharaa, or do we ask Abu Mohammed al-Golani about his memories in Iraq?

The Iraqi people’s memories are what’s ruling the country, more so than the constitution, political parties and civil society because they are burdened with questions they don’t want to answer.

And yet they ask: What if we weren’t part of the “Axis of Resistance”? Iraq’s history would reply that it has long been part of axes, or either awaiting a war or taking part in them.