The Arab world's largest economy is at the point of changing the economic model

  • 250.000 Saudis enter the job market every year;
  • Salary (320$: foreigners / 1420$: Saudis);
  • Oil price from 100$ to 30$ per barrel;
  • 90% of government revenues are from Oil;
  • 70% of Saudi workers are employees in the public sector;
  • 70% of the population is under 30;
  • 21 million citizen

The kingdom of Saudi Arabia has lately had difficult times with the drop of oil prices -From 100$ the barrel to 30$- which is the first source of government revenues (90% of government revenues). The drop of oil prices is considered a wake up call to make the necessary changes in an economic model, that is counting on oil revenues to cover the government’s huge charges. The Saudi economic model has produced a generation that benefited from many facilities without any efforts nor educational level required. Consequently, with oil prices drop, this generation is forced to face a different world from expected as seen with their parents.

Knowing that 70% of working Saudis are employed by the government, in a nation in which 70% of the population are under 30, the government of Saudi Arabia today, is encouraging youths to work in the private sector in order to reduce government spending. Even-though, the private sector itself, is heavily dependent on the government.

oil

Although the government is encouraging youths to work in the private sector, private companies are not as excited. Saudi employees cost way more than foreigners (Starting from: 320$: foreigners/1460$: Saudis) and are less productive, with this habit of fleeing work at noon or earlier sometimes.This generation is mostly described as spoiled.

The Saudi economic model has been providing the royal family -Al Saud- with the necessary means used to maintain their position on the kingdom’s throne and promote an austere interpretation of Islam.

By Aimane Idhajji

To read all the article: Young Saudis See Cushy Jobs Vanish Along With Nation’s Oil Wealth

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