Key internal and external challenges of Saudi Arabia
The Saudi government is facing both internal and external challenges. Mainly, these challenges belong to two major spheres of the Saudi Kingdom that include:
- Internal Politics
Currently the Saudi government has substantial security and economy crisis. Moreover, the internal politics of the Saudi Arabia is also posing challenges for the country. The security of the Saudi Arabia is a major external threat that needed to be eliminated. There are five common internal and external threats in the realm of security, economy and internal politics and these threats include:
- War in Yemen
- War in Syria
- Rivalry with Iran
- Falling oil prices
- Disputes in domestics politics
There is an ongoing war in Yemen and the rebels wanted to occupy Saudi land. Therefore, the armed forces of the Saudi Arabia are in the position of war. A substantial amount of the budget is being used in the war crisis that also poses substantial challenges to the economy. Moreover, Saudi Arabia is also threatened with the Syria regime. This is in the favor of the Saudi Arabia to eliminate the Syrian regime to put an end to the security threats from Syria. The Saudi government has difficulties in relations with Iran. The Iran is striving to achieve nuclear power and it is against the security of the Saudi Arabia (Pant & Behar, 2015).
Although the Saudi Arabia economy has grown very strongly, the major challenges are the substantial oil prices since 2014 it is an important risk towards the economy. The Saudi Arabian economy depends on the oil revenue. The revenue comes of export of the 80 percent oil sales export. The lower oil prices will have the impact on the fiscal and external balances. The reliance on the oil makes issues for the policy makers. The first is how to deal with the dependency on the oil and initiate the domestic economy. Therefore, this is an important economic challenge for Susi Arabia.
The internal politics of the Saudi Arabia is also troublesome. The appointment of young defense minister Mohammad bin Salman is not liked by the key people in internal political structure of the Saudi Arabia. The current crown prince is 55-year old Mohammed bin Nayef who is favorable for western allies. Moreover, Mohammad bin Salman is likely to expand its own poer base and willing to appoint his key people in key positions. Therefore, political disputes are severe and it could weaken the country internally (Dan, 2015).
Consequences of internal and external challenges of Saudi Arabia
The major consequences of the internal and external challenge are the weak security situation, economic condition and internal politics. The ongoing war in Yemen, Syria and abrupt relations with Iran has posed significant challenges for Saudi Kingdom. Therefore, the Saudi government is worried about the security situation in the country. Moreover, the economy is the dependant on the oil prices, which grows with the oil prices growing and decreases with the oil prices decreased.
The economy is of the type to be known to be diverse from the oil. The oil is the thing, which is there for the economy majority, which needs to be diversifying. The oil prices are to be initiated from the economy and should be dealt in the economical issues (Dan, 2015). These challenges will affect the fiscal and the external balance. The fluctuations to the oil will be diversifying the fiscal policy and will be different issues as if the prices will grow with the economy and decrease with the oil prices.
The disputes in internal politics of the Saudi Arabia and power struggle have led to the weak political condition in the domestic politics. The weak internal politics also poses threats to the external security of the kingdom. Therefore, the internal political struggle and power sharing must be settled down. The political appointments in the royal families needed to settle down appropriately without any problems (Husein, 2006).
Remedial measures to overcome challenges
The ongoing war must be put an end. The more will be the scale of the war, the more will be the security threats for the Saudi Arabia. Therefore, disputes with Yemen and Iran must be put to an end. The role of Pakistan is important and recently the Saudi delegation visited Pakistan to get the support. This is an important step. Such efforts must be carried out in future as well. In addition, the relations with Iran also needed to be settled. The longer will be the dispute with Iran, the more it will be problematic with Saudi Arabia. The oil will be needed to be leaving the dependency, which needs to be changed over time (Pant & Behar, 2015).
The Saudi Arabian economy needs to be changing the factor, which 80% part of their economy, which is laid down in the fiscal and external balance, which should be removing the dependency. The dependency over oil must be reduced. Currently, the 80% of revenues of the Saudi Arabia comes from the oil. Therefore, this is not a god sign for the economy. Other sectors of the economy must need to be promoted in that regard. The fiscal policies dependency should be changed with changing the economy factor, which should evolve the economy. The change are in the economic factor should be diversified and should be leading the economy with the different style of economy the dealing in the verdict to be taken (Husein, 2006).
Responsibility of decision makers
The decision makers need to be dealing in the scenario of mitigation and resolving the issue, which need to be mitigated. The security council of the Saudi Arabia makes the relations better with the Yemen and Iran and also play its role in the settlement of disputes with Syria. The Oil dependency need to be changed because the economy is to be fluctuate and will result in the form of the fiscal and external balance to be dealt in the form of the exports of the country (Pant & Behar, 2015). Saudi Arabia needs to differentiate the factors, which should come to the economic factors.
The dependency should be removed and should be dealt in the format that the economy is resolved and worked over the scenario. The scenario is which will deal in the factors to be removed dependency to another level. The decision maker should be thinking of the scenario that the issues of the oil dependency should be put to another place. The dependency should be revealed and other factors will be adjusted to the fiscal and external balance. Moreover, internal political landscape needed to be improved with compromise over the power sharing.
Dan. (2015). Saudi Arbia facing many challanges. Retrieved April 30, 2016, from http://tradinggods.net/trading-gods-blog/saudi-arabia-facing-many-challenges/
Husein, A. T. (2006). Construction and projects in Saudi Arabia. Construction and projects in Saudi Arabia , 1-11.
Pant, M., & Behar, A. (2015). Saudi Arabia: Tackling Emerging Economic Challenges to Sustain Growth. Saudi Arabia: Tackling Emerging Economic Challenges to Sustain Growth , 1-94.