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Saudi Arabia and the rentier regime trap: A critical assessment of the plan Vision 2030

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  • Faudot, Adrien

Abstract

The oil price drop which occurred in international markets in 2014 has revived concerns about the economic situation of Saudi Arabia. The country is at a crossroads, as evidenced by both its unsustainable economic model and the plan that the government proposed in spring 2016 to overcome dependence on oil, Vision 2030. This article examines the country's ability to achieve this objective by analysing the Vision 2030 plan and the socio-economic challenges that Saudi Arabia is facing. The economic problems of Saudi Arabia do not stem from the weakness of its institutions. Quite the opposite, forged by oil exports, the structures of its rentier economy are well-established and difficult to push forward. To understand such a state of affairs, this article provides an analysis of the Saudi economy's accumulation regime. Furthermore, the article questions development economics regarding oil-rich countries which are concerned by the Dutch disease issue.

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  • Faudot, Adrien, 2019. "Saudi Arabia and the rentier regime trap: A critical assessment of the plan Vision 2030," Resources Policy, Elsevier, vol. 62(C), pages 94-101.
    • Handle: RePEc:eee:jrpoli:v:62:y:2019:i:c:p:94-101
    DOI: 10.1016/j.resourpol.2019.03.009
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    1. Firoz Alam & Shahid Alam & Mohammad Asif & Umme Hani & Mohd Naved Khan, 2023. "An Investigation of Saudi Arabia’s Ambitious Reform Programme with Vision 2030 to Incentivise Investment in the Country’s Non-Oil Industries," Sustainability, MDPI, vol. 15(6), pages 1-19, March.
    2. Sweidan, Osama D. & Elbargathi, Khadiga, 2022. "The effect of oil rent on economic development in Saudi Arabia: Comparing the role of globalization and the international geopolitical risk," Resources Policy, Elsevier, vol. 75(C).
    3. Suheela Shabir & Jabir Ali, 2022. "Determinants of early‐stage entrepreneurship in the Kingdom of Saudi Arabia: Evidence from the Global Entrepreneurship Monitor Database," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1566-1578, July.

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