Why the Recent Saudi Arabia Crisis Matter – Introduction
Saudi Arabia is the second biggest oil producing country in the world after the United States. It produces more than 12 million barrels every day, which is 2 million lower than the 14 million produced by the United States. It is also the biggest countries in the Middle East with a GDP of more than $650 billion. It is followed by the United Arab Emirates, Egypt, and Iran which have a GDP of more than $348 billion, $336 billion, and $393 billion respectively.
The Middle East is one of the most important regions in the world. This is because of the valuable crude oil reserves in the region. As you know, crude oil is the most important commodity in the world. It is used to produce all the other commodities. For example, without it, it would be impossible to produce soybeans and corn in large scale. In addition, crude oil is used in the processing and transporting of the commodities. The Middle East is also an important region because of the instabilities that exist there. The region is home to many terror organizations.
The de facto leader of Saudi Arabia is Mohammed Bin Salman. Salman is the son of the current king and is known as the crown prince. He is a young man in his early thirties. After ascending to power, he was hailed by foreign media as a change agent. He was a moderate who started to allow women to drive. Women were also given more freedoms. He was also praised for his anticorruption credentials. As you recall, last year, he arrested some of the most powerful businessmen and accused them of corruption. In addition to this, he hosted the first investors conference in the country. This was known as the Davos in the desert.
The crown prince is also known for his thin skin. A few months ago, he severed ties with Canada after a tweet. He then withdrew all investments that Saudi Arabia had committed to in Canada.
Saudi is also a big investor in the world. It has committed hundreds of billions of dollars in global investments. For example, it has committed more than $100 billion in the Softbank vision fund. This is a fund that has invested in large technology companies like Uber and wework.
The country is an important ally of the United States in the region. This friendship has attracted a lot of criticism in the United States mostly because of the role it played during the 911 attacks. It was revealed that most of the attackers were the from Saudi Arabia. It was also revealed that the country had helped fund the operations.
Two weeks ago, a Saudi journalist went to the Saudi consulate in Turkey. The journalist was a very important critic of the crown prince. He had penned a number of articles in Washington Post. After going to the consulate, he didn’t come back and it is believed that he was murdered. Turkey has obtained the recordings of the interrogation.
This has created a lot of political pressure in the United States. The president has said that he will punish Saudi if it is proven that they killed the journalist. In addition, most of the participants in the upcoming event in the country have cancelled their participation.
A conflict between Saudi Arabia and the United States will be difficult for the market. It will lead to higher oil prices and volatility in the world markets.