The low oil prices and the corona pandemic are exacerbating the financial crisis in Saudi Arabia. Due to the slowdown in the global economy, the relevant oil price fell from around $ 60 to less than $ 20 per barrel and has not recovered completely since then. The annual average price is around $ 40. For a balanced national budget, however, Saudi Arabia needed an oil price almost twice as high.

In addition to oil exports, pilgrimage tourism to the holy sites of Islam in Mecca and Medina also brings a lot of money into the conservative kingdom every year. The income of more than $ 20 billion corresponds to almost 3% of the annual national income. But because of the Corona crisis, Riyadh closed the borders to foreign pilgrims for seven months. Since November, travel to Mecca has been possible again with restrictions.

The Saudi Ministry of Finance announced on Tuesday, December 15, 2020 that the budget deficit for 2020 is the equivalent of $ 79 billion. This corresponds to around 12% of the annual economic output. The hole in the state treasury is more than twice as large as in the previous year. Without tax increases and austerity measures, the deficit would have been even higher this year. In the summer, the Saudi government tripled VAT from 5 to 15%. The Saudi state has been in the red for six years. Previously it was practically free from debt, but it now amounts to 35% of economic output.

Saudi Arabia urgently needs to expand its economy. The state can simply no longer afford to be the largest employer in the country. The private sector must therefore create more jobs. Mohammed bin Salman has long recognized these connections. The 35-year-old Crown Prince has promised to modernize the country economically and socially. The Crown Prince implemented some reforms. At the same time, bin Salman has proven to be a ruthless ruler with an absolute claim to power who does not accept any criticism and thus discourages investors. According to the Crown Prince, fighting corruption has raised funds worth $ 66 billion over the past three years. Critics, however, doubt the criminal proceedings.

Is Saudia-Arabia to the way to a statement like in Ezekiel 38:13 Sheba and Dedan and the merchants of Tarshish and all her villages will say to you, “Have you come to plunder? Have you gathered your hordes to loot, to carry off silver and gold, to take away livestock and goods and to seize much plunder?” ’