It suggests that based on current trends, Saudi Arabia could face a rapid economic deterioration over the next 15 years. Even if the government were to react by freezing public spending or intervening in the labor market, household income would nonetheless likely fall, unemployment would rise and there would be growing fiscal strain. This outcome is not a foregone conclusion, however. Another, very different scenario is possible if the Kingdom is able to inject new dynamism into the economy through a productivity-led transformation. Significant reforms in the labor market, business regulation, and fiscal management would be required to realize the intrinsic potential of the non-oil economy. Successfully implemented, these reforms could usher in a new cycle of prosperity for the Kingdom
Saudi Arabia beyond oil : the investment and productivity transformation
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It suggests that based on current trends, Saudi Arabia could face a rapid economic deterioration over the next 15 years. Even if the government were to react by freezing public spending or intervening in the labor market, household income would nonetheless likely fall, unemployment would rise and there would be growing fiscal strain. This outcome is not a foregone conclusion, however. Another, very different scenario is possible if the Kingdom is able to inject new dynamism into the economy through a productivity-led transformation. Significant reforms in the labor market, business regulation, and fiscal management would be required to realize the intrinsic potential of the non-oil economy. Successfully implemented, these reforms could usher in a new cycle of prosperity for the Kingdom