Saturday, April 2, 2016

Saudi Arabia’s dramatic plans will transform the country’s economy forever – Dagbladet.no

(Dagbladet): The day the oil runs out, anything that someday will do is plan for Norway to have secured its financial future through the Government Pension Fund.

As of this writing while Norway has, through investments in various sectors, slightly in excess of 7,000 billion Norwegian kroner in the bank. But not all countries have so far been just precautionary. One of them is Saudi Arabia.

With the oil price fall in recent years, also the country’s money server dwindled considerably in. Last October could the International Monetary Fund (IMF) report that country, associated with wealthy sheikhs, oil lubricated welfare and Sharia law, was about to steer towards an economic horror scenario.

This aft country’s royal family now to do anything. In a lengthy interview with Bloomberg, said Prince Mohammed Bin Salman about how to take action.



17,000 billion

About the Saudi royal family has taken insipirasjon directly from Norway is not known, but they will create his own fund. On staggering 17,000 billion Norwegian kroner. How will the country be less vulnerable in terms of oil prices in the future.

The way they shall obtain the enormous sums is that they will sell off five percent of the state-owned oil company Aramco. It will be the world’s most valuable company can run trading.

Speculation surrounding the sale have been swirling ever since The Economist first floated the possibility in January, but now it can therefore look like the prince himself confirms that this is the plan.

– When posting parts of the company for sale, and transfer the shares to the Fund, investments become the source of income, not oil. It remains only to diversify investments. Within 20 years we will be an economy and a state that no longer depend solely on oil, he said.



– The largest in the world

The prince says that the fund is already about to be created and that it is in possession of shares in Saudi Basic Industries, the world’s second largest chemical company, and the National Commercial Bank, one of the nation’s largest banks.

According to the plans, the Aramco will be listed in 2018, and in the same moment the Fund, which is more than twice as big as the Norwegian oil fund, see the light of day.

– there will no doubt be the largest fund in the world. This will happen as soon Aramco goes public, he said to Bloomberg.



Expensive operational

And it must be seized in the desert, there is no doubt. IMF warned that the economy could collapse as soon as in 2020 if nothing was done.

Monetary Fund pointed out that the foreign exchange reserves are shrinking day by day, and that precipice in oil prices seriously has exposed how dysfunctional and vulnerable fiscal policy in a country where oil has accounted for 90% of the country’s export earnings and nearly 75% of government revenue.

15,000 people, belonging to the six royal family branches in the country, pouring out huge sums to ensure Saudis good welfare – while strengthening its own positions and popularity.

A good example is King Salman Bind Abdualziz Al Saud. In connection with the coronation of himself on January 23 last year, bought me he generously 32 billion on the public to put people in real conviviality.

The country also has significant defense spending that makes a deep inroads into economy. With a budget of up to 700 billion, it is now only the US and China as spending more money on the military in the world.

Gone

It is not often the outside world gets a glimpse of what goes on in the corridors of power in Saudi Arabia. Neither the intrigues that unfold in one of the world’s most powerful royal families.

But last year it happened somewhat unusual when Prince Sultan bin Turki delivered a review of Prince Abdulaziz bin Fahd in Switzerland. The accusation was a kidnapping in 2003.

Now, Prince Sultan bin Turki disappeared, according to The Guardian.

The newspaper wrote this week that the prince has been taken back to Saudi Arabia against their will. February 1, he would, according to sources in the Prince follow, taken a flight from Paris to Cairo to visit a family friend. But the prince never came forward to Kempinski Hotel in Cairo.

– There was a Saudi plane with landing Cairo, but the plane flew not to Cairo. The plane had a Saudi Arabian flag on Plane Tail. The aircraft came from the Kingdom, said a person who was the Prince in Paris The Guardian .

Grandchildren

The prince is to be disappeared, son of Prince Turki and grandson of King Abdul Aziz Ibn Saud.

Power Fighting within the al-Saud family has always been big. King Abdul Aziz Ibn Saud, the founder of modern Saudi Arabia, had over 30 sons in 22 wives. It provides hundreds of princes and up to 15,000 Royal total.

When King Abdullah died on January 23 last year, took King Salman over. He has been a turbulent reign. Saudi Arabia’s economy has been turned upside down by oil prices, neighboring Yemen had disintegrated, Saudi Arabia supports wars in both Syria and Yemen and relations with Iran have been drastically deteriorating.

Meanwhile, a total of three princes disappeared, according to The Guardian.

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