▻https://www.forbes.com/sites/ellenrwald/2018/07/25/signs-point-to-trouble-ahead-for-saudi-economy/#3591ae46635d
Signs Point To Trouble Ahead For Saudi Economy
The lasting impact of that crackdown (or purge, depending on how you see it) has been a stifling of the Saudi private sector, with many wealthy Saudis unwilling to invest domestically despite Prince Mohammad bin Salman’s centralized push for business growth . The government, under the direction of the prince, is trying to compel economic growth and diversification, primarily through the Vision2030 program. This has left the Saudi government as the major source of investment in the Saudi economy, which, ultimately, defeats the objectives of diversification and privatization. Government investment can make Saudi economic numbers look good on paper, but it is a risky strategy. When oil prices fall so does government spending (meaning government spending does not lead to diversification).
This also sends a troubling signal to foreign investors and foreign businesses considering opportunities in the kingdom. If Saudis are trying to move their money out of the country—and if the government is concerned enough to prevent them from doing so—foreign investors or companies looking to open businesses in Saudi Arabia will hesitate. Without assurances that the rule of law is respected in Saudi Arabia, foreign businesses will consider Saudi Arabia too risky to enter. Capital flight from Saudi citizens is a key indicator.
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