ALERT Is Saudi Arabia [about to be] the Middle East’s Next Failed State?

MinnesotaSmith

Membership Revoked
Many links in original.

https://www.lewrockwell.com/2018/10/no_author/is-saudi-arabia-the-middle-easts-next-failed-state/

By Daniel Lazare
October 5, 2018


Reports are growing that Muhammad bin Salman, Saudi Arabia’s hyperactive crown prince, is losing his grip. His economic reform program has stalled since his father, King Salman, nixed plans to privatize 5 percent of Saudi Aramco. The Saudi war in Yemen, which the prince launched in March 2015, is more of a quagmire than ever while the kingdom’s sword rattling with Iran is making the region increasingly jumpy.

Heavy gunfire in Riyadh last April sparked rumors that MBS, as he’s known, had been killed in a palace coup. In May, an exiled Saudi prince urged top members of the royal family to oust him and put an end to his “irrational, erratic, and stupid” rule. Recently, Bruce Riedel, an ex-CIA analyst who heads up the Brookings Institution’s Intelligence Project, reported that the prince is so afraid for his life that he’s taken to spending nights on his yacht in the Red Sea port of Jeddah.

Channeling Ibn Khaldun

What does it all mean? The person to ask is Ibn Khaldun, the famous Tunisian historian, geographer, and social theorist. You might have trouble getting him on the phone, though, since he died in 1406. But he’s still the single best guide to the deepening Saudi crisis.

If you do somehow channel him, the message might be grim. In a nutshell, it’s that if MBS goes, he’ll likely take the Al-Saud with him, and that the people waiting in the wings will not be the “moderates” beloved of Washington, but ISIS and al-Qaida. A modern state bristling with shopping malls, superhighways, and high-tech weaponry thus will succumb to a ragtag militia riding Toyota pickups and waving AK-47s.
Ibn Khaldun, a member of an upper-class Spanish-Muslim family that fled to North Africa after the fall of Seville in 1248, was one of the most remarkable personalities of the late Middle Ages on either side of the Christian-Muslim divide. He wrote The Muqaddimah, a book-length prologue to his six-volume world history, which British historian Arnold Toynbee praised “as undoubtedly the greatest work of its kind that has ever yet been created by any mind in any time or place.” The anthropologist Ernest Gellner described Khaldun as a forerunner of modern sociology. The Muqaddimah, a strange blend of faith, fatalism, and science, is best known for its musings on the subject of the urban-nomadic conflict and the process by which dynasties rise and decay.

As Ibn Khaldun put it:

[T]he life of a dynasty does not as a rule extend beyond three generations. The first generation retains the desert qualities, desert toughness, and desert strategy. … They are sharp and greatly feared. People submit to them. … [T]he second generation changes from the desert attitude to sedentary culture, from privation to luxury and plenty, from a state in which everybody shared in the glory to one in which one man claims all the glory for himself while the others are too lazy to strive for glory. … The third generation … has completely forgotten the period of desert life and toughness, as if it never existed…. Luxury reaches its peak among them, because they are so much given to a life of prosperity and ease.

Decadence leads to collapse as fierce nomadic fundamentalists gather in the desert and prepare to mete out punishment to the city dwellers for their religious laxity. “[A] new purge of the faith is required,” summed up Friedrich Engels, who evidently read Ibn Khaldun, “a new Mahdi [i.e., redeemer] arises, and the game starts again from the beginning.”

It’s a recurrent cycle that has held true for a remarkable number of Muslim dynasties from the seventh century on.

Evidence of Instability

The big question now is whether the pattern will hold true for the Saudis.

The answer so far is that it will. Events are proceeding on course. Ibn Saud, the founder of the modern Saudi state, by allying himself with Wahhabism, the local version of Islamic ultra-fundamentalism, embodied Ibn Khaldun’s concept of a ruthless desert warrior who uses religion to mobilize his fellow tribesman and battle his way to the throne in 1932. Once Saud took power, he proved to be a tough and cagey politician who put down rebellion and expertly played Britain and America off against one another to solidify his throne.

But the half-dozen sons who followed were different. The first, Saud, was a heavy spender who brought the kingdom to the brink of bankruptcy. The second, Faisal was an autocrat who was so out of his depth that he believed Zionism somehow begat communism. Khalid, who took power in 1975, was an absentee monarch who was gripped by paralysis when hundreds of rebels took over Mecca’s Grand Mosque in November 1979 and had to be rescued by French commandos flown in specially for the occasion. Fahd, who succeeded to the throne in 1982, was obese, diabetic, and a heavy smoker who ultimately fell victim to a massive stroke. Abdullah, his successor, also was sickly and obese, while Salman, who assumed the throne in 2015 at age 79, has suffered at least one stroke and is said to exhibit “mild dementia.” A video of the king landing in Moscow in 2017 shows a doddering old man who can barely descend a staircase.

The upshot is a group study in decrepitude. MBS, who all but took over the throne in 2015, meanwhile personifies all the foolishness and decadence that Ibn Khaldun attributed to the third generation. He’s more energetic than his father. But as one would expect of someone who has spent his entire life cosseted amid fantastic wealth, he’s headstrong, impractical, and immature. Appointed minister of defense by his father at the ripe old age of 29, he declared war on Yemen, Saudi Arabia’s neighbor to the south, two months later and then disappeared on a luxury vacation in the Maldives where a frantic Ashton Carter, Barack Obama’s secretary of defense, was unable to reach him for days.

A year later, MBS unveiled Vision 2030 a grandiose development plan aimed at bringing Saudi Arabia into the 21st century by diversifying the economy, loosening the grip of the ultra-intolerant Wahhabiyya,and putting an end to the country’s dual addiction to oil revenue and cheap foreign labor. In a country in which young men routinely wait years for a comfortable government sinecure to open up, the goal was to rejigger the incentives to encourage them to take private-sector jobs instead.

It hasn’t worked. In a rare moment of candor, a pro-government newspaper recently reported that thousands of employers are evading government hiring quotas by paying Saudi workers not to show up. “Employers say young Saudi men and women are lazy and are not interested in working,” it said, “and accuse Saudi youth of preferring to stay at home rather than to take a low-paying job that does not befit the social status of a Saudi job seeker.”

Some 800,000 foreign workers have left the country while capital is fleeing in the wake of last November’s mass roundup in which hundreds of princes and businessmen were herded into the Riyadh Ritz-Carlton and forced to turn over billions in assets. Foreign direct investment has plummeted from $7.5 billion to $1.4 billion since 2016 while a series of super-splashy development projects are in jeopardy now that Saudi Aramco privatization, which MBS was counting on as a revenue source, is on hold.

While granting women permission to drive, MBS has imprisoned women’s rights advocates, threatened a dissident cleric and five Shiite activists with the death penalty, and cracked down on satirical postings on social media. He preaches austerity and hard work, yet plunked down $500 million for his yacht, $450 million for a painting by Leonardo da Vinci, and $300 million for a French chateau. The hypocrisy is so thick that it’s almost as if he wants to be overthrown.

Fundamental Enemies

As for the lean and hungry fundamentalists whom Ibn Khaldun said would administer the final blow, there’s no doubt who fits that bill: ISIS and al- Qaida. Both are fierce, warlike, and pious, both inveigh against a Saudi regime drowning in corruption, and both would like nothing more than to parade about with the crown prince’s head on a pike.

In May, al-Qaida denounced Saudi religious reforms as “heretical” and urged clerics to rise up against a “moderate, open Islam, which all onlookers know is American Islam.”

In July, Islamic State took credit for an attack on a Saudi security checkpoint that claimed the life of a security officer and a foreign resident.

In August, ISIS chief Abu Bakr al-Baghdadi accused Saudi Arabia of “trying to secularize its inhabitants and ultimately destroy Islam.”

These are fighting words. Both groups meanwhile enjoy extensive support inside the kingdom. Prior to the attack on the World Trade Center, wealthy Saudis, including members of the royal family, helped fund al-Qaida to the tune of $30 million a year, according to Anthony Summers and Robbyn Swan’s 2011 best seller, .

In 2009, then-Secretary of State Hillary Clinton confided in a diplomatic memo that “donors in Saudi Arabia constitute the most significant source of funding to Sunni terrorist groups worldwide.” More than three thousand Saudis have traveled to Syria and Iraq to join up with al-Qaida, ISIS and other Islamist forces. Once they return home, such jihadis might constitute a fifth column threatening the royal family as well. A crumbling royal family could fall like a ripe date into their outstretched palm.

Could Saudi Arabia become the Middle East’s next failed state?

Washington is filled with so-called Middle East experts contributing to one disaster after another. Could it be that the best Mideast hand worth listening to is a North African scholar who died more than six centuries ago?
 

MinnesotaSmith

Membership Revoked
Unintended consequences of failed Saudization of many jobs

http://www.gulf-insider.com/800000-expats-left-saudi-arabia-creating-hiring-crisis/

Expat exodus from Saudi Arabia as more than 800,000 leave in 18 months

By: Christopher Copper
12 Apr 2018


Saudi Crown Prince Mohammed bin Salman may have portrayed himself as a moderniser rolling back the country’s stultifying social restrictions — but he is struggling to turn the country’s financial fortunes around, with the economy suffering a crisis of confidence.

Hit hard by the oil-price collapse, the kingdom is now experiencing a plunge in foreign investment and high levels of capital outflow.

The uncertainty has been stoked by Saudi Arabia’s apparent struggle to fill private sector jobs vacated by a growing exodus of expats. As of April, more than 800,000 had left the country since late 2016, alarming domestic companies concerned that the foreigners cannot be easily replaced.

Their departure is part of Saudi Crown Prince Mohammed bin Salman’s (MBS’s) attempt to wean the country off its dependence on oil through economic diversification, a significant element of which involves trying to persuade Saudis in undemanding state sector jobs — which make up two-thirds of domestic employment — and those out of work to take up the new vacancies. The authorities want to generate 450,000 openings for Saudis in the private sector by 2020.

MBS has sought to expedite the exodus of foreign workers, who constitute about a third of the population, by stepping up the process of so-called Saudisation — essentially the creation of a more productive local workforce. He is hiking up levies on companies employing non-Saudis, requiring foreigners to pay fees for dependents, and restricting the sectors in which they can work, with employment in many areas of the retail and service industries now strictly confined to Saudis. The measures are said to be driving the expat exodus, evident in the marked downturn in the rental real estate market and empty shopping malls.

While among high-earning Western professionals Saudi Arabia has long been viewed as a hardship posting compensated by their tax-free status, the majority of foreigners in the country are from the Middle East and Asia, many employed in low-paid jobs in the sectors now earmarked for Saudis.

But Saudi business owners are having difficulty getting locals, accustomed to undemanding work in the state sector and generous unemployment benefits, to work for them. Reports suggest many Saudis are put off by what they regard as poorly paid, low-status jobs. The recruitment problems have seemingly sparked so much concern that they have been played out on the pages of the Saudi Gazette, the government’s mouthpiece, which normally features anodyne stories about life in the kingdom.

In February, the publication reported that a number of heads of chambers of commerce and industry had called on the government to exempt the private sector from “100%” — or full — Saudisation, especially posts that are hard to fill, such as in construction, amid concerns that many businesses may close down. In May, an item revealed that over a three-month period over 5,000 fines were issued to businesses flouting Saudisation rules in sectors ranging from telecoms to hotels to car rental.

Many companies are reported to be circumventing the policy’s local employee quota requirement by hiring Saudis and paying them small salaries for what are in effect bogus jobs — a process termed “fake Saudisation” — prompting some to call for the nationalisation of the jobs market to be reconsidered. In December, columnist Mohammad Bassnawi provided an intriguing insight into private sector concerns over the policy and its possible consequences.

“Employers say young Saudi men and women are lazy and are not interested in working and accuse Saudi youth of preferring to stay at home rather than to take a low-paying job that does not befit the social status of a Saudi job seeker,” Bassnawi said, adding that fake Saudisation “could create a generation of young men and women who are not interested in finding a job and who prefer to get paid for doing nothing.”

Nonetheless, the authorities seem unlikely to row back on Saudisation. MBS hopes to generate some $17.33 billion through the new expat taxes by 2020 in order to help address the budget deficit — projected to be $52 billion in 2018 — and finance new economic projects. Yet critics question whether the projected tax haul will compensate for the loss of consumer spending resulting from foreigners’ departure, as even those who remain are likely to send their relatives home because of the fees on dependents.

“Taxation of expatriates, before Saudi Arabia turns into a productive economy that depends on industry, is like putting the cart before the horse,” Tariq A. Al Maeena, a Jeddah-based commentator, said in Gulf News in October. Karen E. Young of the Arab Gulf States Institute in Washington, writing in the institute’s blog in February, said it will take a decade or more to create a working class of Saudis willing to do service sector, retail, and construction jobs.

In the meantime, MBS’s hopes of raising capital elsewhere, and making public expenditure savings, are dimming, and a plan to slash public subsidies has had to be curbed in the face of public grumblings.

Foreign direct investment slumped from $7.5 billion in 2016 to $1.4 billion last year, a fourteen-year low, UN figures show. Moreover, in November, a paper by the Institute of International Finance projected capital outflows in 2017 at $101 billion, 15% of GDP. The IIF said capital flight from Saudi Arabia has contributed to the sizeable decline in official reserves. There are strong anecdotal indications that a proportion of these outflows represent concerned businessmen shifting as much of their liquid assets abroad.

Fortunately, a rebound in the price of oil has provided some financial respite. Foreign reserves, which have in part been used to finance the budget deficit, experienced a month-on-month rise of just over $13 billion, to nearly $499 billion, in April, still way down from their peak four years ago, when they stood at $737 billion.

While he may have more funds at his disposal, MBS can’t continue indefinitely to draw them down, nor rely on bond issues, to plug budgetary shortfalls. Yet he might have no choice. With Saudi business and foreign investor confidence in the economy at such a low ebb, and Saudisation under strain, it will be a while before private sector wealth-generation will be able to help Saudi Arabia balance the books.
 

Luddite

Veteran Member
Maybe completely unrelated to the OP, or not...

Fair USE
https://www.reuters.com/news/world

Exclusive: Turkish police believe Saudi journalist Khashoggi was killed in consulate - sources

Turkish authorities believe that prominent Saudi journalist Jamal Khashoggi, who disappeared four days ago after entering Saudi Arabia's consulate in Istanbul, was killed inside the consulate, two Turkish sources said on Saturday.
 

Faroe

Un-spun
I thought that AI Sophia was supposed to fix everything.
What happened to her?

An exodus of ex-pats?
They are missing out on that big new smart-everything, all interconnected high tech city (IIRC, Neom?) that is supposed to have the world's best and brightest flocking in to help run it (while Saudis sit around sipping coffee).

The leader needs to have another big press conference with Honey Money-what's-her-name.
 

Zagdid

Veteran Member
Maybe completely unrelated to the OP, or not...

Fair USE
https://www.reuters.com/news/world

Exclusive: Turkish police believe Saudi journalist Khashoggi was killed in consulate - sources

Turkish authorities believe that prominent Saudi journalist Jamal Khashoggi, who disappeared four days ago after entering Saudi Arabia's consulate in Istanbul, was killed inside the consulate, two Turkish sources said on Saturday.

Think definitely related along with Trump's warning that the King might not last 2 weeks without US protection.
 

Cardinal

Chickministrator
_______________
I keep thinking about the Nostradamus prediction that "mabus will soon die" in connection with a comet and great devastation. Any comets due soon?
 

mzkitty

I give up.
Hmmm, which liars to believe, eh?


Rudaw English
‏Verified account @RudawEnglish
3m3 minutes ago

#BREAKING: Turkish security officials tell state media 15 #Saudis who arrived on two chartered flights are linked to disappearance of #JamalKhashoggi and Saudis took CCTV footage from inside consulate when they left #Turkey
 

Randy in Arizona

Senior Member
What worries the soup out of me is the megabucks the Saudis
and UAE are spending on some of our highest tech weapon systems!

If those countries go fundamentalist their neighbors (and Israel) will be in deep kimchee.

284 :gaah:
 

Ragnarok

On and On, South of Heaven
What worries the soup out of me is the megabucks the Saudis
and UAE are spending on some of our highest tech weapon systems!

If those countries go fundamentalist their neighbors (and Israel) will be in deep kimchee.

284 :gaah:

The House of Saud has always doled out for the best and prettiest military weaponry. They sorely lack in competent soldiers to run said machinery, though...

The Arabs are born and bred in a tribal setting and are simply unable to put those inter-tribe differences aside and gel as an army
 

Ragnarok

On and On, South of Heaven
The House of Saud has always doled out for the best and prettiest military weaponry. They sorely lack in competent soldiers to run said machinery, though...

The Arabs are born and bred in a tribal setting and are simply unable to put those inter-tribe differences aside and gel as an army

( 8:42 ) Why Arabs Lose Wars
Arabic-speaking armies have been generally ineffective in the modern era. Egyptian regular forces did poorly against Yemeni irregulars in the 1960s. Syrians could only impose their will in Lebanon during the mid-1970s by the use of overwhelming weaponry and numbers. Iraqis showed ineptness against an Iranian military ripped apart by revolutionary turmoil in the 1980s and could not win a three-decades-long war against the Kurds. The Arab military performance on both sides of the 1990 Kuwait war was mediocre. And the Arabs have done poorly in nearly all the military confrontations with Israel. Why this unimpressive record? There are many factors—economic, ideological, technical—but perhaps the most important has to do with culture and certain societal attributes which inhibit Arabs from producing an effective military force
https://www.youtube.com/watch?v=cZk4Yu42g0I
 

Dosadi

Brown Coat
I despise those camel jockey sand ******s and have zero use for them.

They have funded more harm to CONUS than I can say without big bro repercussions, but they are a picture of evil.

What they get is what they have earned, many times over.

Now if mecca n messina would just glow in the dark it would be all good.

Never , ever, ever trust a motslime, esp one from the middle east and more especially from a place like saudia arabia which is a horror show beyond something anyone needs to ever put into their minds.

I'll hush up now, just so ya know I wouldn't give em a drink of water if I had it for em.

Let em drink oil and walk a mile for a camel burger while dogs gnaw on their intestines and pigs eat the rest of em
 

NoMoreLibs

Kill Commie's, Every Single One Of Them!
Hope the nation would be ready for 8, 9, 10 dollar a gallon gas if the house of Saud falls. Especially if they turn into another Iran and go very radical IsLame.
 
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