How Saudi Arabia is HIDING its own Downfall? :Geopolitics Case Study

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VIDEO INTRODUCTION:

On 10th of Jan 2021, the Saudi Crown Prince Mohammed bin Salman made the grand annoucement for the plan of the line city in the Saudi Arabia and this is by far one of the craziest projects ever witnessed by mankind!!! And while most people are fascinated by the grandeur of the Neom city, what we fail to see is that, this is Saudi Arabia's desparte attempt to cope up with an economic nightmare. Yes you heard that right, one of the richest nations in the world is facing an economic nightmare that is hidden in plain sight.
The question is,
What is this hidden problem with Saudi Arabia?
What is this NEOM or line city project?
How is NEOM meant to resc ue Saudi Arabia?
And why do people think NEOM is meant to fail the state of Saudi Arabia?

To understand the importance and the vision of the Neom city, we first have to understand the economic scenario of Saudi Arabia. You see the core reason why Saudi Arabia is super powerful is because, it is the 3rd largest producer of oil in the world. and more importantly, it also has the second largest oil reserve in the world.

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#saudiarabia #saudi #oilcrisis #india #geopolitics
#thinkschool #businesscasestudyd Credits: CNN-News 18, WION, NBC News, Money control pro, Business standard, TV18,Business Today, ABC news, CNBC, ET now ,Bloomberg originals, Financial Times, DW documentary, AL Jazeera English, BBC news, Firstpost. Fair use - This video is for educational purposes only. All materials used in this video, including images, audio, and video clips, are the property of their respective owners and are used here under the doctrine of fair use. This video is intended to provide commentary, criticism, research, and education on the subject matter. We believe this constitutes a fair use of any such copyrighted material as provided for in Section 107 of the US Copyright Law.

[ThinkSchool]

Code: THINKSCHOOL

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[keerthanaap]

I used to always feel sad about India being energy deprived but I realise that we are blessed to be a water-rich and food-surplus country.

Edit: Ouch! Seems like I triggered many Liberandus.

[cloudyblaze]

Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[PTSulon]

This is a great video. The music is very climatic too. It's well produced and very informative.

[eyeofthepyramid]

Minor correction: desalinated water is not toxic but when a large amount of fresh water meets the sea it causes major impact on sea life like coral reefs.

[himanshugehlot]

U and akshat Srivastava both have god gifted vocabulary skill you both just easily explain English without fancy words

[msc.jayashankarassociates-]

Excellent analysis and details on the Saidi Arabia . Brilliant one keep it up and look firward for many more such videos with good data / analysis

[Nick-qvck]

When oil was cut off from the United States during the 1973 Arab-Israeli War, Henry Kissinger told Faisal "If Saudi Arabia does not lift the boycott, America will come and bomb the oilfields." King Faisal replied back "You are the ones who can't live without oil. You know, we come from the desert, and our ancestors lived on dates and milk and we can easily go back and live like that again." But I don't think king Faisal's quote remains true anymore.

[arindamsengupta]

I spend 50% of my work days in this country and am completely in sync with your views. Very well explained 👏

[nooruls]

I work in Saudi Government sector and I can assure that there are many more initiatives taken by Saudi Govt. to diversify economy away from oil. NEOM and Qiddya are just few headline grabbing projects, but Saudi have many projects going on in industrial sector, chemicals, manufacturing and recently in IT services industries. Recent announcements from Microsoft and Oracle to establish regional data centers and invest billions of dollars is a testament. Moreover, there isn't 63% unemployment, many Saudis gave entered the job market and performing jobs at all levels. The skillset of Saudis have greatly improved compared a decade ago. Things are moving in right direction and it is just not the construction projects Saudi depends on. Moreover, Saudi Arabia is rich in other minerals too, which has been greatly untapped

[ThinkSchool]

Hey everyone,
The break even term mentioned in the video is FISCAL breakeven and not just break even!! As in, its not the cost needed to recover the production cost but the cost that oil needs to be sold at to not shake the budget!! So while oil companies (Like Aramco) profit from selling oil, oil COUNTRIES are considered to profit only when their oil profits can cover govt spends!!

[laliberte]

Saudi Arabia 🇸🇦 is a great example of "don't put all your eggs in one basket"

[davidwenger]

The Jeddah tower has been abandoned sitting there for a few years. This seams like a pipe dream to me.

[UdayKumar-qhjr]

Just think
How much hardwork they did for getting all these information within one week.
OMG how much time u r spending in a day for making this videos man.
Just for pickuping new topic takes more than one week. U r awesome 👌

[Limitless_motivation_official]

I don't know why I am too attracted to your channel. Amazing ideas, perfect explanations and very needed information for young generations, to learn from.
Keep up the good work 👏
We will always support you...

[prabhatsourya]

The problem with Saudi Arabia is that countries like UAE and Qatar have been pushing ahead with their diversification much earlier than Saudi Arabia, so the "middle eastern tourism heavens" titles have been snapped up by those countries. These countries have managed to build up a hospitality brand by means of their airlines, which have developed their fame all around the world. I mean, airlines like Emirates and Etihad (UAE flag carriers) and Qatar airways (flag carrier of Qatar) have done HUMONGOUS levels of publicity of the hospitality for UAE and Qatar. But the thing is, Saudi Arabia doesn't have such international level of hospitality reputation that UAE and Qatar have. This makes it disadvantageous for Saudi Arabia to attempt to diversify.

Also, apparently, there were gigantic aquifers under the Arabian peninsula which were formed almost 10, 000 to 15, 000 years ago when the monsoons were more northern oriented. However, Saudi Arabia, in its desperate bid for food security, drained up large quantities of those aquifers to irrigate its fields to the point that almost 60%-70% of those aquifers are depleted now, forcing Saudi Arabia to shift its food to other countries, and to increasingly rely on its desalination plants. It also has to plan for new plants to cover for this deficit as well.

Some back of the hand calculations have said that Saudi Arabia if being forced to use almost 25% of the oil it produces just to power the desalination plants because of its water scarcity, which is projected to increase further to around 50% when the aquifers inevitably run out by the 2030s and the kingdom is forced to rely entirely on desalination. This would be disastrous if the Saudis don't diversify its energy mix quick enough.

Also, there has been some argument by experts who claim that Saudi Arabia is fudging its numbers and inflating its claims of its oil reserves by almost 40%, which puts the kingdom in a bigger problem.

[yashwanthachugatla]

Ganesh : Hi everybody!
.
.
Bro... This already makes my day... @thinkschool is an absolute gem of a channel.... Every week your team comes up with a new interesting topic and the hard work you people put behind the scenes is phenomenal. Huge respect ❤️

[NIHILIST-uk]

I read a quote somewhere by an Arab oil tycoon who said in effect " *My grandpa rode camels, my father rode a car, I ride a Ferrari and my grandson will ride a camel* "

[ramchillarege]

Fantastic Video. Congratulations on your reporting. This is better than many wall street journal articles.

[vera]

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