What do you think will happen to SA if there is a global recession?
4 replies (most recent on top)
Oil will be oil!
@1wzx i think a ton more is going into infastructure projects. yeah, yachts are being bought but when you think about it our billionaires also have excesses, starting from $100M+ homes to buying Twitters for $10s of billions. I think the kingdom has a bigger problem on the cultural side, many changes will be needed to be able to fire up the econmy and I am not sure if they can do it. It's just hard. I wish them all the best, I've spent three great years here and I hope they improve and become better.
The magic Kingdom just doesn't know how to manage the windfall cash that + $100 oil brings to the King's coffers. Sad that they choose to buy Yachts and expensive art for the privileged class, as opposed to providing education and health care for all the less privileged Saudi's.
In a global recesion 100 USD barrel is not feasible, demand will be restricted but if price is reduced with more offer, demand could be maintained. In other words, Aramco needs to keep the pace to be able to continue pumping money to the projects in kingdom.