Kingdom of Illusions: Saudi Arabia’s Oil Empire Falters as Royals Splurge

Lower-for-longer oil prices significant Saudi blow

Lower-for-longer oil prices are dealing a significant blow to the Saudi economy, exposing its ongoing vulnerability to oil market swings despite years of diversification efforts. As oil revenues remain the backbone of Saudi Arabia’s finances—comprising over 60% of government income—the recent plunge in prices has triggered a cascade of negative economic consequences. Of course, the kingdom remains immensely wealthy—on paper. But that wealth is only sustainable if spending is brought under control. The question remains - is Saudi austerity even a possibility?