Saudi Arabia on right economic road — even according to ‘Dr. Doom’ Nouriel Roubini

Nouriel Roubini urged the Kingdom to press on with its Vision 2030 plan. (AN Photo)
Updated 12 April 2019
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Saudi Arabia on right economic road — even according to ‘Dr. Doom’ Nouriel Roubini

  • Nouriel Roubini: It’s a long term plan, but if it’s implemented right and consistently it could be successful and Saudi Arabia could become a prosperous country
  • Roubini: I think that both President Trump and President Xi need a trade deal, so they’ll reach an agreement

BAHRAIN: Economist Nouriel Roubini famously predicted the global financial crisis of 2008, earning himself the nickname “Dr. Doom” in the process.

But even he is not gloomy about the potential of Saudi Arabia’s reform plans — which he believes will make the country thrive if continued in the right way.

Speaking to Arab News at the Top CEO conference in Bahrain, Roubini urged the Kingdom to press on with its Vision 2030 plan, which aims to wean the country off its addiction to oil.

“It’s a long term plan, but if it’s implemented right and consistently it could be successful and Saudi Arabia could become a prosperous country,” he said.

“Economically there is an ambitious program of modernization because the young leader-to-be has realized that, with a youth bulge and a high unemployment rate you have to modernize and open up the economy, give jobs and opportunity to people.”

Roubini, who teaches at New York University’s Stern School of Business, said he did not believe a global financial crisis is imminent.

“I do not see another global financial crisis in the next year or so, but eventually there will be a global recession. If and when that occurs is a very open question, but it’s not over the near horizon.”

Roubini, who told the audience that today he would rather be known as “Dr. Realist” than “Dr. Doom,” said he was more optimistic on global trade, although he expressed some cynicism over US President Donald Trump.

“I think that both President Trump and President Xi need a trade deal, so they’ll reach an agreement. Trump will declare victory whatever deal they reach.”

Meanwhile the conference was also told that the Arab region, like the rest of the world, needed to embrace change or face failure.

And that change, delegates were told, must include an increase in the representation of women in the workplace at a senior level.


Egypt agrees to pay Israel $500 million to end gas dispute

Updated 17 June 2019
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Egypt agrees to pay Israel $500 million to end gas dispute

CAIRO: Egypt says it has struck a deal with the state-owned Israel Electric Corp. to settle a fine for halting deliveries of natural gas.
A statement from Egypt’s Petroleum Ministry said the settlement deal, which was signed Sunday, would reduce the $1.7 billion fine to $500 million.
It says Egypt will pay the amount over eight and a half years.
In return, the Israeli company would drop other claims resulting from a 2015 arbitration decision.
Israel Electric had sued the state-owned Egyptian General Petroleum Corporation and Egyptian Natural Gas after a 2005 deal to export natural gas to Israel collapsed in 2012 amid militant attacks on a pipeline in the Sinai Peninsula, where Egypt has been battling insurgency for years.
Israel relied on the pipeline to meet its energy needs.