Seeking foreign investment Saudi Arabia may modernise

Saudi Arabia’s Crown Prince Mohammed bin Salman, popularly known as MBS in a recent Future Investment Summit, held on 24th October in Saudi Arabia’s capital, Riyadh, launched independent $500bn megacity - with "separate regulation" - along with the Red Sea coastline. It will be run entirely on alternative energy and be an innovation hub for the future.

This Future Investment Summit is an international event to attract investors into the kingdom. He issued a statement, “Saudi Arabia would returnto a moderate Islam that is open to all religions and to the world". He further said, "We will end extremism very soon". These statements issued by MBS has a lot of repercussions.

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First, this statement is a reflection of his vision and Saudi's vision 2030 - a plan for social and economic reform as the kingdom prepares for a post-oil era. This is part of its attempt to shift from an oil-based economy to a modern one. It will reassure investors that Crown Prince Mohammed bin Salman's push to diversify its economy beyond oil is on track. In the recent months, Saudi has made moves to change its global image like allowing women to drive. The government has also revoked restrictions on the use of Skype and Whatsapp.

Secondly, these statements also show that the failure of the monarchy as it is trying to divert the citizens focus from diminishing resources of the kingdom. The end of these resources would be devastating for Saudi Arabia’s economy.

Third, these statements are a clear challenge to the religious establishment of the regime. This shows the breaking of the alliance between House of Saud and the clergy, which maintains a stronghold in the Saudi system. The political system of Saudi is based on religious establishment.

Fourth, MBS talking of new age and change looks difficult without a cultural transformation in Saudi. Saudi Arabia’s state religion is fundamentalist form of Sunni Islam, Wahhabism, where the Islamic Sharia law is practiced strictly. Infidelity and drug trafficking are punishable with beheading, and women still need to be accompanied by a male guardian. Saudi Arabia is the last country in the world to grant women driving rights.

His plans guarantee brighter future for Saudi’s, as he is promoting modernisation plans to attract foreign investment and expand the economy beyond oil. He has announced unique social and economic reforms after coming to power. His projects provide a forward-looking image which is a game changer for the image of Saudi globally. His statement is very bold for a conservative country like Saudi Arabia where other religious practices are not allowed. Like, for example, churches are banned.

It would be great if he could change the guardianship systemwhere women cannot marry, work, study, open bank account, apply for passport, travel or seek healthcare without the consent of their male guardians. A Saudi woman can never pass on her nationality to her children, who need a visa to enter the kingdom. Then only half of the population of Saudi Arabia can participate in the development of economy freely. Also, his cultural revolution will be successful.

However, the success of these changes requires stability and security in the region. It will be comfortable in investing only if, there isstability and security in the region. This is only possible if the crisis in Yemen ends and the relations with Qatar resumes. Also, the prince is moving rather too quickly with reforms which might not go too well with the religious establishment within Saudi.

Democracy and citizen rights is a distant dream in this Gulf monarchy. Gender segregation is practiced in many places and women are marginalised in jobs. Monitors, including Amnesty International, says Saudi Arabia has in parallel stepped up its repression of peaceful rights activists. Saudi authorities last month arrested more than 20 activists, including two popular Muslim preachers, without disclosing any charges against them.

In such an environment, new age looks difficult. Changes in Saudi economy must be accompanied by cultural changes. The founding precepts of the country are not working anymore, as Saudi has a young population, maximum under the age of thirty.

Though a lot has changed under MBS and that is giving a modern, liberal image to Saudi Arabia internationally.