The binding appointment of ---year Prince Muqrin bin Abdulaziz as second in line to Saudi Arabia s throne resolves the critical issue of succession for the time being. The stage is now set for a prolonged period of transition, as the younger generation of royals gradually ac- quires more responsibilities. ...Prince Muqrin is the youngest surviving son of the country s founder, Abdulaziz Ibn Saud, and the half-brother of the cur- rent ruler. He is therefore well placed to bridge the gap between the remaining senior members of the Al Saud family and the younger generation of royals, which is gradually assuming more responsibilities (see Passing The Mantle , February -, ----). The last three years have seen Abdulaziz s grandsons rise to top leadership positions, including strategic ministries and the - Business Monitor International Ltd www Saudi arabia Q- ---- ...He is therefore well placed to bridge the gap between the remaining senior members of the Al Saud family and the younger generation of royals, which is gradually assuming more responsibilities (see Passing The Mantle , February -, ----). The last three years have seen Abdulaziz s grandsons rise to top leadership positions, including strategic ministries and the - Business Monitor International Ltd www Saudi arabia Q- ----
...- Business Monitor International Ltd www Saudi arabia Q- ---- core Views Continued heavy spending on the part of the government indicates its ongoing concerns about the need to shore up its key bases of support, given the persistent threat of public unrest. While we maintain that large-scale protests are unlikely to occur in Saudi Arabia, large youth unemployment coupled with a lack of political liberties mean that tensions will continue to linger. ...We expect heightened saudisation measures to add to the costs for the private sector over the coming quarters, leading to an increase in project delays and a more difficult business environment overall. A sharper-than-expected downturn in the global economy, if it was to translate into a substantial decline in oil prices, would pose significant downside risks to our forecasts for Saudi Arabia s fiscal and current account position, though it remains highly unlikely that either account will fall into the red in the near term. We expect inflation to remain relatively subdued in ----, with price pressures stemming largely from housing costs. However, we high- light that a prolonged period of robust growth, coupled with loose fiscal and monetary policy, poses a medium-term inflation risk, and could begin to spur more rapid price rises in the coming years. - Business Monitor International Ltd www executive summary
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