Saudi Arabia, reform or retrenchment?

Saudi Arabia’s new monarch, King Abdullah, is praised by some for his open-mindedness, while others criticize him for being illiberal. With al-Qaida on the run and skyrocketing oil prices, the kingdom and the royal family may be overcoming the crises of recent years. But some observers say that the new oil boom and the possibly receding terrorist threat may mask the importance of growing social problems and prevent urgently needed reforms.

…Analysts say that a degree of mutual aversion remains, while many fear that the new oil boom will encourage the monarchy to return to its traditional complacency, neglecting the urgent need for reform.

Although the budget surplus of US$82 billion, will be partly used to repay Saudi Arabia’s huge US$126.7 billion public debt and to improve infrastructure and the national educational system, analysts note an apparent lack of desire for movement on democratization and social innovation.
Moreover, although they praise these fiscal plans, many observers say that, aside from members of the ruling family, hardly anyone in the kingdom knows the amount of money which goes directly into the bank accounts of Saudi princes and is not registered within the official budget.

Steinberg says that when Abdullah was ruling the country as crown prince, during the long illness of the late King Fahd, he only initiated reforms at a time of low oil prices and al-Qaida threats. He did so because he feared that financial strains and security problems might threaten the traditional powerbase of the monarchy.

ISNS Security Watch