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jose chalhoub

Is Kuwait the next Saudi Arabia of the Gulf?

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"does not view the country's economic liberalization plan as being far behind efforts in Saudi Arabia, whose larger population prompted a quicker diversification effort. Kuwait has a population of roughly 4.4 million, while Saudi Arabia's population over 32 million"

Because of Kuwait's far lower population, they can remain addicted to oil revenue and the natives will be fine for some time. Saudi Arabia's population boom stresses the oil and gas patronage system. Saudi's diversification efforts are more power point than reality at this point. Oil north of $60 has bought them some more time, but the trends are still against them. And 10 million of SA's population is ex-pats. Coupled with very high under 25 Saudi unemployment, they have to get the private sector working. In Saudi government entities are overwhelming Saudi workers. In the private sector, overwhelming expats. It's a complicated social restructuring to address. 

It won't happen, it can't happen, but if Saudi Arabia's population trend, and energy consumption trends, continue, they are a net importer of oil sometime in the 2030s. 

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