Saudi Arabia’s Crown Prince Mohammed bin Salman (known as MbS) is in the midst of a global tour, which has highlighted the challenges facing his Vision 2030 economic reforms as well as ongoing geopolitical tensions in the region. Reports suggest that the centrepiece of Vision 2030 – the sale of a stake in the stateowned oil company, Aramco – has been pushed back to 2019. Meanwhile, comments attributed to the crown prince have dashed hopes of a resolution to the diplomatic crisis with Qatar. The crown prince is due to fly to the US next week, where he will meet with President Trump on Tuesday in the wake of the dismissal of US Secretary of State Rex Tillerson. There have been suggestions that Mr. Tillerson’s departure will pave the way for the US to pull out of the nuclear deal with Iran, which could kick off a nuclear arms race in the Middle East. So far, markets have glossed over these developments. Equity markets have been broadly stable over the past month. And interbank spreads in the Gulf have narrowed further – interbank rates in Saudi Arabia are now below those in the US for the first time since 2009.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services