Saudi Arabia’s $10bn IMF loan and its implications – Middle East Monitor:
"The news that Saudi Arabia is applying for a $10 billion loan from the International Monetary Fund (IMF) is shocking. The country is the world’s largest exporter of oil, so why does it need a loan from the IMF? This move is likely to cause the collapse of the Saudi economy slowly but surely.
The past few years have already given an indication that the economy in Saudi Arabia is in trouble, and that there shall soon be a need to shift it toward non-dependence on oil. The price of crude oil has been the biggest contributor to this slowdown, with a fall from $147 per barrel in 2008 to the current $47. The high oil price led the Saudis to believe that they would enjoy massive oil revenues for a very long time.
However, instead of investing in the infrastructure, food technology, information technology and human resources while the going was good, investment was diverted overseas, especially to the West. Saudi Arabia continued to import even basic foodstuffs in order to provide citizens with a comfortable life. Foreign nationals were engaged to carry out specialised as well as menial roles. Not even basic industries were developed, never mind advanced space research, bio-technology, IT and defence."
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