Poblem: Navigating the Complexities of Leadership and Reform
It was not until the rise to power of Saudi Crown Prince Mohammed bin Salman, known by his nickname, MBS, that a new chapter in the history of Saudi Arabia really began. These challenges come nailed down on the de facto ruler from the very nature of the country he is presiding over: a nation rich in oil and as deeply conservative as it is traditional, with customs largely unchanged for decades.
Saudi Arabia has been a nation far too dependent upon the revenues of oil for far too long a time. This creates the totally opposite effect of a fragile economy that is very susceptible to movements in global oils prices. Simultaneously, at the social level, the kingdom’s structure has been tightly dictated by its religious authorities, making any modern reforms hard to put in place. The challenge before MBS comes, therefore, in clear terms: how does a nation get modernized without losing its cultural identity and yet ensuring economic stability?
The stakes are high. On the one hand, the economy desperately needs diversification and to move away from oil. On the other, the people have an entrenched culture of change-aversion. This sets the stage for a situation where anything short might result in economic downturns, social unrest, or the worst—both.
Agitation: The Weight of Expectations and the Pressure to Succeed
The world is watching MBS. His ambitious Vision 2030 program, launched in 2016, aimed at turning Saudi Arabia into an international investment powerhouse, freeing the economy of dependence on oil, and introducing social reforms that could open up the Kingdom to the world. But the difficulties to be encountered in this batch of achievements are well understood.
Back at home, however, MBS has had to manage opposition from the royal family and the conservative religious establishment. His decision to allow women to drive, open cinemas, and clip the wings of the religious police have all been widely lauded and criticized. These changes, though welcomed by a substantial proportion of young Saudis and the international community, have been resisted by traditionalists who feel that the kingdom is being pulled away from its Islamic moorings.
Economically, the vision to diversify the economy is not an easy one. However, with asymptotic goals in mind, the Vision 2030 places non-oil revenue goal at $267bn in 2030 vis-à-vis $43.4bn in 2016. Achieving them would need big-time investment in areas like tourism, entertainment, and technology—sectors that have so far been in their babyhood in this country.
Moreover, controversies have not lacked for the leadership of MBS as well. The 2018 killing of journalist Jamal Khashoggi, believed to be ordered by the Crown Prince himself, not only shocked the world but placed Saudi Arabia at odds with most of its closest allies. This case has cast such a long shadow over the leadership of MBS that it becomes hard not to wonder if he really is committed to the preservation of human rights and the rule of law.
Solution: MBS’s Bold Vision and Relentless Drive for Reform
Against all odds, MBS, up to now, has been tight-fisted while keeping his eyes on the transformational vision for Saudi Arabia. His mode of reform is a great cocktail of pragmatism and boldness, and there is no mistaking his feverish drive to ensure the long-term sustainability of the kingdom.
Economic Reforms
Economic diversification lies at the very center of MBS’s Vision 2030. It is for this that the sovereign wealth fund of Saudi Arabia, Public Investment Fund, came out very strongly and invested billions in different diversified sectors at the global and local front. For instance, it has taken multi-billion-dollar interests in businesses such as Uber, Lucid Motors, and SoftBank’s Vision Fund, translating into a show of the same magnitude of Saudi Arabia’s interest in featuring as a global investment powerhouse.
The other aspect of MBS’s economic endeavor is settling with the development of NEOM, a $500 mega-city that will see it as a center of innovation and technology. NEOM will bring international investment and business in this area, acting as a base for the equipping of latest frontier technologies in renewable energy, biotechnology, and AI. This project is part of MBS’s ambitious program aimed at creating a more diversified and sustainable economy capable of prospering in a post-oil world.
Social Reforms
Modular social reformations from the MBS regime have been equally revolutionary. Solving the ban on driving for women since 2018 constitutes a hinge moment in the history of Saudi Arabia. Combined with relaxation of the male guardianship system, the participation of women in the workforce has been much improved. According to the Saudi government, after this, the rate of female labor force participation of 19 percent in 2016 had soared to 33 in 2020—an extremely impressive achievement for so small a time.
Entertainment and cultural activities are another domains in which MBS has made rapid progress. Reopening of the cinemas banned for the last 35 years, holding of international sporting events, and launching music festivals such as MDL Beast were all the part of strategy by MBS aimed at modernization of Saudi society and demarcation of space that would appeal to the tourists and expatriates.
Indeed, the reforms have been extraordinary, but they are not void of criticisms. Many believe that the changes are cosmetic and do not actually tackle the more important issues of political repression and lack of freedom of speech. Still, MBS’s supporters say the reforms are necessary steps in a larger course of modernization and change cannot happen overnight.
Political Maneuvering
MBS’s rise to power was marked by a leadership style that combined decisiveness with ruthless political maneuvering. His anti-corruption drive of 2017, which involved detaining hundreds of princes, government officials, and business leaders, signaled that he would not hesitate to remove any rival claims to his power. While some saw it as a real drive against corruption, others read it as a way to strengthen his hold on power.
Controversy aside, MBS’s moves have cemented his status as the most powerful person in Saudi politics. He succeeded in sidelining his previous power-sharing arrangements with senior members of the royal family who were seen as obstacles to his reform agenda. He has surrounded himself with younger technocrats who share his vision of how the kingdom should move forward into the future.
Navigating International Relations
Internationally, he has conducted a more aggressive foreign policy. The decision to intervene in Yemen may be controversial, but it was taken to check Iranian influence and has become well known for all the criticisms it has faced on humanitarian grounds. Yet not a step back or to a halt. Indeed, MBS has always depicted the war in Yemen as the next inevitable step he had to take to protect the security of Saudi Arabia and his interests in the region.
MBS has also tried to establish better ties with the rest of the world powers: first of all, with the United States and China. Indeed, his relationship with former U.S. President Donald Trump was very close, and Trump’s administration gave strong support to both MBS’s policy at home and his foreign policy. In the meantime, MBS is incrementally building the Saudi relationship with China, understanding that in this progressively multipolar world, the kingdom needs to further diversify its alliances.
Case-in-Point: MBS’s Reforms and Their Impact on the Economy and Society of Saudi Arabia
How is the story of the change happening in Saudi Arabia with the direction of MBS? To get that, get through the specific case study on how MBS’s reforms have radically transformed Saudi Arabia’s entertainment industry.
Before MBS
Before MBS took charge, Saudi had a non-existent entertainment sector. Cinemas were banned, public concerts were rarity, and cultural activities were tightly controlled by religious authorities. The kingdom was often criticized for not having recreational options which lead many Saudis to travel abroad for their pastimes.
This also had economic implications arising from such a lack of entertainment infrastructure. The absence of a vibrant entertainment sector meant that the country was losing massive revenue streams that would otherwise have accrued from tourism and other events-based industries.
The Post-MBS Transformation
Since MBS introduced his Vision 2030 plan, there has been a massive and radical change regarding the entertainment scene in the kingdom of Saudi Arabia. General Entertainment Authority was set in 2016 and has represented the major change. It’s charged with the development and regulation of the entertainment regarding what is suitable in the kingdom. The country has seen a trend where they have been organizing monumental events, fun, and bringing international stars for entertainment.
One of the momentous changes is the re-opening of cinemas in the year 2018 that would mean much more than just providing avenues for the people to get some entertainment. It was a clear indicator that the kingdom had provided for more exceptional doors for change. Since then, cinemas have experienced a boom. International giant chains like AMC and VOX considered the opening of the market, and today, one can get a cinema anywhere in the country.
The game literally changed when large-scale events entered, as is the example of the Riyadh Season that includes concerts, sports events, and cultural exhibitions over a span of several months. During the just-ended year of 2019, the Riyadh Season drew over 7 million people from all over the Kingdom and realized economic returns of around $2.6 billion, according to the GEA. This has really boosted the spirit of the government in continuing to invest in this sector, where it aims at making such an investment a primary engine of growth in the economy.
Broader Impact on Society and Economy
The growth in the entertainment industry, among others, has been felt through a domino effect on associated businesses. In particular, the vast tourism industry is set to benefit from the increased number of events and attractions developed on Saudi soil. The Saudi administration has already announced its target to increase the number of visitors to the country annually to 100 million by 2030, from 41 million as in 2018. The infrastructure development alongside the eventful ease in the visa process is vital in achieving the goal.
Socially, this large offering expanded the opportunities for entertainment. Young Saudis observed new ways of stylizing, approaching, and relating in a way that eventually led to slow changes in norms. Even if conservative segments of society still resist certain changes, there is no denying that MBS’s changes have really created a new spirit of dynamism and openness in the kingdom.
Conclusion: THE LEGACY OF SAUDI CROWN PRINCE MOHAMMED BIN SALMAN
Where Saudi Crown Prince Mohammed bin Salman strives as becoming the one in charge of his country’s dynamics, his thoughts are equally lucid on what Saudi Arabia has to be, on the future. Through ambitious economic and social overhauls, MBS looks to position the Kingdom as a modernized, diversified, and globally competitive nation.
However, that road to the vision stands not free of challenges.
