SHAKEUP IN THE DESERT! Saudi Arabian Businesses BRACE for a CRUNCH as Oil Prices PLUMMET!
OIL CRISIS STRIKES: Can Saudi Arabia Survive the FREEFALL?
HOLD ON TO YOUR CAMELS! Saudi companies are scrambling to protect themselves as the kingdom faces an ominous economic slowdown! Geopolitical chaos has sent oil prices CRASHING from over $80 a barrel down to a shocking $60—a devastating drop that shakes the very foundations of the nation’s wealth!
KINGDOM IN TURMOIL: Government Spending in Jeopardy!
For too long, the Saudi economy has lived and died by the whims of oil—swings that have left it vulnerable and unsteady. Now, with crude prices at their LOWEST since 2021, businesses are on HIGH ALERT, gearing up for a tough ride ahead!
One tech entrepreneur, who learned the hard way the consequences of government cutbacks after the 2016 oil collapse, is making drastic moves. His first company shut its doors, but his latest venture—tied to customer loyalty programs—has pivoted fast! With an eye on resilience, he’s reduced reliance on government clients and dove into food and beverages, riding the wave of rising tourism!
DOOMSDAY FORECAST: Will Government Contracts Dry Up?
“We’ve diversified to survive!” he declared, revealing that government contracts now account for a mere 10% of revenue. However, the worry doesn’t end there—his second company, reliant on government contracts, is facing bleak prospects. “If oil prices take another dive, we’re DEAD IN THE WATER,” he warned. YIKES!
VISION 2030: A PIPE DREAM in SHAMBLES?
Back in 2016, Crown Prince Mohammed bin Salman unveiled his ambitious Vision 2030 plan—designed to kick the kingdom’s oil habit and invest in everything from glittering tourism to the wildest infrastructure dreams! But now? As government officials scramble to rein in spending, those grand plans face delays and revisions.
Despite some success in boosting non-oil exports, the fact remains—oil still ruled the roost, making up 61.6% of state revenues!
AUSTERITY ALERT: Contractors Worry as Spending Tightens!
Government departments are tightening their belts, which means PAIN for businesses relying on contracts to survive! The memories of last oil slump austerity measures are still fresh, and the anxiety is palpable. Will THIS slump be as damaging?
One foreign executive running a popular restaurant chain admits the slowdown hasn’t hit hard yet, but the specter of global supply chain disruptions looms large. “People are still spending, but I’m watching the supply chain like a hawk!” he exclaimed.
STAND BY FOR IMPACT: The LONG ARM of Oil Prices!
As Saudi Arabia’s leaders boost oil production, the message is clear: They’re ready to weather low prices for market dominance. Yet, for businesses across the desert, this is just the beginning of a turbulent ride! Will they adapt fast enough? Stay tuned!
photo credit: www.ft.com
