Muhammad bin Salman Faces Interlocking Crises as Saudi Initiatives Stall
· World · Hindustan Times, The Economist
Saudi Crown Prince Muhammad bin Salman is facing a severe convergence of security and economic challenges as the Future Investment Initiative summit in Riyadh is postponed until next year. The Houthi militia has intensified missile and drone attacks on Riyadh, effectively shutting down the airport and prompting Western governments to issue travel warnings. Prince Muhammad's decade-long wagers on defeating the Houthis, reshaping the domestic economy, and relying on Donald Trump as a dependable ally have all faltered simultaneously. A sputtering economic programme, driven by shelving large projects and wages lagging behind inflation, has led the IMF to forecast a 3.3% economic contraction for the kingdom. Foreign direct investment remains at roughly one-third of the crown prince's $100 billion target, while future growth depends heavily on Middle East peace and relations with the US.
Why it matters
The escalation of regional conflict and economic contraction in Saudi Arabia threatens the crown prince's ambitious reform agenda and disrupts investment flows across the Middle East.
Read the original report — Hindustan Times
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