English
Today Dubai is emerging as the financial capital of the world where the world’s billionaires have their homes and offices. While Saudi Arabia is working on mega projects under Vision 2030, a big tension has come Crown Prince Mohammed bin Salman’s way. The Crown Prince has started the construction of Neom city in his dry desert near the Red Sea under Vision 2030. Billions of riyals are being spent like water to build this city.
Neom city is the dream project of the Saudi Prince. Saudi Arabia is spending billions of dollars earned from oil to develop this city. Engineers and laborers have been called from all over the world for this.
While Saudi Arabia is working on mega projects under Vision 2030, the falling oil prices have increased its tension. This month, oil prices have fallen to a 3-year low of $68 per barrel.
Under this vision of Saudi Arabia, work started in 2016, some of which has already started but Saudi’s plan on Neom city seems to be failing. The size of Neom city has had to be reduced.
The Saudi Arabian government is now forced to suddenly reduce oil production. Even after this, there is no possibility of oil prices increasing. Experts say that Saudi Arabia will have to reduce its total annual expenditure by 3.7 percent.
Due to this, Saudi Arabia will now have to reduce the expenditure on Neom city and other mega projects. If Saudi Arabia does not reduce the expenditure, then the government debt will increase a lot, which will not be good.
The Saudi Prince has launched Vision 2030 to reduce the country’s economy’s dependence on oil and is developing the city of Neom. Through this, the Saudi Prince wants to attract foreign tourists and boost revenue.
Through the city of Neom, the Saudi Prince wants to compete with Dubai city of UAE.
While the fall in oil prices has come as a shock to Saudi Arabia, it is good news for India. If oil prices remain low, inflation in India can be controlled. Less foreign currency will have to be spent on oil.
