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It’ll be interesting to see how the Arab states will diversify their economies in the next decade. There’s really not much to exploit there except oil, so unless they pump out enough money to basically rest on their investments in perpetuity I’m really not sure what to expect.
They have deserts for solar energy and cheap workers. What else do they need?
It’s hard to load solar energy on oil tanker.
Joke apart, how would they make money with solar energy? Oil is a very limited resources that can be transported very easily. Every country in the world needs oil but only a few country can supply it so the business model is extremely straight forward: export oil to the countries that has the money to buy it.
Now what is the business model with solar energy? Every country in the world has sun and electricity is hard to export over long distance so what are they doing with it ?
They can do anything, from data centers to any industrial production line. At worst they recycle aluminum.
Not every country has that much sun and the space. You don’t want to clear forests or farmland for solar energy.
Hydrogen Production would be the logical thing.
The workers aren’t cheap.
Don’t they use third world migrant workers?
They do, but it only works as long as you can subsidize the locals with oil wealth to either not work or work in non-productive jobs.
The native Emirati population in Dubai is only ~300k while the total population of Dubai is ~3,500k. You can sustain that in a single city, but you can’t sustain that throughout an entire region.
Saudi Arabia has a population of 32M with an immigrant percentage of 42%. To reach Dubai’s ratio, Saudi Arabia would have a population of ~218M. That would be near Brazil or Nigeria. It would also require the country to expand to be able to support an additional 186M.
Neom. What do you think they are doing? They don’t have to go to 218M but why shouldn’t they? Whoever manages to have the next level of urban density first will dominate innovation and attract the brightest minds.
I don’t know if shiny infrastructure alone will attract bright minds.
It won’t. There is also no guarantee that they will succeed. But I believe that they are trying.
Tourism. The plan is tourism. These projects are to attract tourists to look at them
Yeah. They all seem hoping to do a Dubai, but there is no way that countries can run their economies on tourism and not expect their citizens to work in that economy.
Who the fuck wants to go to a desert theme park?
I assume you mean gulf States, cause most Arab States don’t have that much oil if any. A lot of them have agricultural economy.
They (the royal family) have grown up pissing away massive amounts of money. Why stop now?
The wisdom of these gigprojects in the middle of a desert aside, it would be awesome more governments would stop trying to run themselves into the ground for profit. Because who the fuck is benefiting if a country is taking more in taxes then they are providing their citizens in services?
KSA actually hands out money to citizens.
https://en.wikipedia.org/wiki/Citizen's_Account_Program_(Saudi_Arabia)