featuresMiddle east

Collapse of Saudi-Gulf economy in the war of Yemen

Collapse of Saudi-Gulf economy in the war of Yemen

Jan, 3 \NewNewss

The war on Yemen has toppled Saudi-Gulf economy through military spending and arms deals with Britain, Zionist entity and the United States, and Saudi Arabia has tried to pump billions of dollars to buy UN and humanitarian organizations to take the silence about the war crimes in Yemen.

Saudi Arabia also spent huge sums of money to its mercenaries – Sudanese, Senegalese, Eritreans, and others – to fight instead of Saudi army, and the salaries for its hypocrites in Yemen have also formed a harsh blow to the Saudi economy over the past three years, which made him resort to cover this deficit through imposition of taxes on food commodities and oil derivatives. This step comes after the reduction of reserve budget of the Kingdom.

According to observers, this money comes in order to preserve Western-American-Israeli interests in the region. Today, what is happening in Saudi economic sector, unlike to what Saudi media published about 2030 vision of Mohammed bin Salman.

Saudi Arabia announced in 2016 the features of a broad plan for economic reform and development under the title “Saudi Arabia Vision 2030” to promote the economy of Kingdom and to liberate it from dependence on oil.

The main points of this plan, as announced by Prince Mohammed bin Salman, who heads the Council of Economic Affairs and Development in the Kingdom, the conversion of Sidi Fund for public investment and put Aramco in stock exchange to finance Saudi sovereign fund and the green card to improve investment climate and military industry and restructuring the housing sector to contribute in raising the rate of Saudi ownership and fighting corruption, but this vision was only a slogan to arrive bin Salman to the power, and today we see the opposite of what was published by the media at that time.

According to some economic information in Saudi Arabia that the war in Yemen cost Saudi Arabia high amounts of money. Most effects of war on Saudi economy since March 2015 as follows:

Benzene prices rose by 127%, and an added tax (sales tax) 5% was applied to everything in order to provide $ 17 billion. The water and electricity bill will be raised, as well as the sale of some sectors with different names including Saudi airports, hospitals, highways and others. Saudi economic situation is heading towards collapse.

Bin Salman sought with several ways to compensate the costs of war by applying economic doses, sometimes by blackmailing his family such as Al-Walid Bin Talal and other traders with the pretext of fighting corruption, and sometimes by selling a number of private sectors. Of the Saudi budget deficit.

These doses, which added unprecedented burdens on Saudi citizen comes when bin Salman bin live a state of luxury and his desire to buy a lot of property in order to fame as his purchase Louis XIV Palace in France (more than 300 million dollars), and a yacht (500 Million dollars), and Leonardo da Vinci’s “Christ the Savior” (450 $ million).

In May 2017, Saudi monarch signed a number of cooperation agreements with US President Donald Trump in Riyadh, which was the largest deal in world history. The deal also included tanks, combat ships, missile defense systems, radars, communications technology and cyber-security. The news agencies said that this deal is an “important” and “historic” development in US relations with Saudi Arabia. The White House announced the signing of military cooperation agreements with Riyadh with 460 billion dollars. Saudi Trade Minister Majed Al-Qasabi said that his country had granted licenses to invest in Saudi Arabia to 23 of largest American companies.

Saudi Arabia bears the biggest load in the war on Yemen. This comes under the increase in arming’s cost. No one can yet provide accurate numbers about the cost of Saudi-led war on Yemen under the name of “Firmness Storm”. The war in Yemen pressures on the economies of oil-producing Gulf states, especially Saudi Arabia and UAE, after more than 1,000 days of aggression. Economic experts said that the ongoing war is a financial drain for the Gulf states. The war left dire humanitarian situation in Yemen, as well as the sharp deterioration in the economy of the poor country, while it is estimated that 21 million Yemenis (80% form the population) need help.

Tags
Show More

Related Articles

Close