Saudi Arabia Says Days of Unconditional Foreign Aid Are Now Ove
Comment of the Day

January 18 2023

Commentary by Eoin Treacy

Saudi Arabia Says Days of Unconditional Foreign Aid Are Now Ove

This article from Bloomberg confirms what I was hearing at the Future Minerals Forum last week. Here is a section: 

As part of its deal with the IMF, Egypt agreed to shrink the footprint of all state-run enterprises, including “military-owned companies,” and committed to allow for a more flexible exchange rate.

“We are also looking at our region, and we want to be a role model for the region,” Al-Jadaan said. “We are encouraging a lot of the countries around us to really do reforms,” he said.

 

Eoin Treacy's view

The UAE’s reluctance to offer donations but attach support to investments is a model Saudi Arabia is now also following. The big oil exporters want regional stability. This change of policy suggests they now appear to believe that will best be achieved through economic reforms.

The Arab Spring shook up the Middle East more than a decade ago and resulted in significant turmoil. It now appears that the policy suite developed in response to those events has matured. Large young populations need to be offered a route to a productive life or rebellion is inevitable. 

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