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The Transformative Leadership of Crown Prince Mohammed Bin Salman and The Reformation in Saudi Arabia

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Words: 1585 |

Pages: 3|

8 min read

Published: Nov 6, 2018

Words: 1585|Pages: 3|8 min read

Published: Nov 6, 2018

Saudi Arabia is a county in the Middle East bordering Oman to the east, Yemen to the south and Iraq to the north. Most parts of the country are deserted encompassing the Arabian Peninsula, but the economy of the country is supported by petroleum oil. According to Nako, & Nuno (2013), Saudi Arabia has enjoyed 24% of the world's oil market over the last decades. The nation enjoys absolute monarchy, with relatively stable political status. Regardless of these favoring environments, Saudi Arabia is still ranked among the underdeveloped nations. Various researchers cite the aspect of underdevelopment to overreliance on the oil industry, with some traditions undermining the social, political and economic development of the nation (Niblock, 2015). Through the transformative leadership of crown prince Mohammed Bin Salman, Saudi Arabia has embarked on various programs to transform the nation towards economic and social-political development.

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Among the reforms that the king has embarked on is the approach to economic production. Overreliance on oil production has been among the inhibiting factor to economic development, with the unemployment level hiking to 12.7% in 2017 (Kinninmont & Kinninmont, 2017). Nako & Nuno (2013) argues that incomes from the oil industry have not been sufficient to wean the economy of the nation. Mohammed Bin Salman has attracted the private sectors and foreign investors to stir up business and begin other economic activities as a way of creating a private sector that will eradicate the oil addiction. The government has tabled $500 billion to construct 10,000 square mile business zone, among other facilities that will attract private investors (Khan, 2016). The emergence of the private companies will provide alternative incomes to the Saudis and its government, increasing the economic income of the state and living standards of its citizens.

The public works program is also centered towards reforming Saudi Arabia. The government has invested in programs of public works to facilitate the construction of public infrastructures such as roads, bridges, hospitals, airports, and schools around the nation. These infrastructures have opened up economic opportunities for the citizens to invest and boost their income. Infrastructures such as roads facilitate business activities, private companies, and growth of the private sector through. These infrastructures are also purposed to open up the nation to foreign investors and venture I more diverse international business rather than relying on the oil business (Kinninmont& Kinninmont, 2017).

However, the private sector of any economy can develop without boosting the individual capability to invest. The country has done a major progress to improve live hoods of its citizens. The citizens are enjoying benefits such as subsidized housing and healthcare from the hospitals established through the public programs. This makes it possible for the low-income Saudis to make savings and invest in the private sector. The aspect of human capital has also been improved by the public education system. From the education systems, Saudis can learn skills and new production methods. This is among the Saudi Arabia vision 2030 goals, to establish an economically independent nation through self-reliance on human capital (Khan, 2016). The development of the human capital through education and training programs anticipates eliminating overreliance on foreign workers and giving a chance for the Saudis to earn and invest in their own nation as a way of building the national economy.

Among other government plans is to invest in non-oil mining. This will create diversity by developing phosphates, uranium, and gold mining industries among others. Government revenue will hereby increase through taxation of the newly anticipated companies. Plans of imposing Value added tax (VAT) to company products such as tobacco, drinks, water, and energy will also boost the government revenue, enabling the nation to more development projects and boost its economic status.

The possibility of economic plans of Salman to succeed is a matter of debate because of the governance structure. A number of challenges and situations are undermining the implementation of these plans. Such situations have painted a bad picture of the nation to the outside world, limiting the interest of foreign investors and business parties to engage Saudi Arabia in international business. Among these is the ban on women driving, competition from rivals, corruption, and unemployment among others (Khan, 2016).

The ban, restricting women from driving vehicles has raised international concerns, with other nations perceiving this as inequality in human rights. According to Dirani, Hamie & Tlaiss (2017), Saudi Arabia has over years been perceived as a nation that does not observe gender equality, with the ban, although traditional been criticized as a violation to human rights. This painted a dark picture of the nation to the outside world especially European nations, withholding their interest to conduct business with the nation. The lifting of the ban by Salman was applauded by the world, and likely to attract foreign investors and international business based on the fact that Saudi Arabia has adhered to human rights and provisions of gender equality (Vogelstein, 2018). The reversal of the also allows women to attend sports and other social-economic events. This step will promote socioeconomic liberalization. It will also help the government to reduce the pressure from “restricting” traditions and religious societal conservatives that have engulfed the nation for centuries.

Another limiting factor is corruption. Over decades, the economy of Saudi Arabia has been maimed by corruption, with cartels taking control of the economy in both the public and the private sector. In a mission to reform the nation, Mohammed formed an anti-corruption commission that is responsible to root out the corrupt government officials and business cartels. This led to arrest of princes and sitting ministers among other government officials who are alleged to be corrupt. According to reports by Stenslie (2018), the commission conducted an operation on the ‘Saudi Arabia's most wanted'. Over 200 people were convicted in an operation that took place in Ritz-Carlton, headed by the attorney general. The corrupt cabinet officials, rich businessmen, and princess were called for negotiation. Those who did not reach an agreement with the government were prosecuted, among them been 11 princes and four sitting ministers. From the agreed fines imposed on the corrupt officials, the government anticipates to net over $100 billion that will be channeled to the economic sector to help recover the national economy which is still crumbling after the 2014 oil crisis. Ending corruption will enhance transparency and accountability, creating a good image of the nation to the outside world and fostering development (Stenslie, 2018).

A lot of government revenue has been spent in external conflicts and the procurement of arms. The reforms are geared towards diverting the attention of Saudis from the economic challenges being experienced to economically improve state with national unity and political stability. The government has diverted its investment to cultural heritage by championing sporting entertainment activities. This will develop the tourism and industry sector, generating more jobs and enhancing cultural diversity.

Turkey, Iran, Iraq, and Egypt among other oil producers have posed a challenge to Saudi Arabia. These nations have adopted the diverse economic approach, enabling them to circumnavigate through oil and financial crisis (Niblock, 2015). These competitors are a challenge to the implementation of these reforms. They maintain large oil market share, limiting the availability of the revenue required by Saudi Arabia to implement their staged reforms. The little revenue generated disappeared in the hands of corrupt government officials. However, there is hope for the success of the reforms, based on the fact that the fight against corruption is at its peak. The government spending will also be slashed through a reduction in Saudi's workforce. Limiting government expenditure will avail funds for development projects geared towards reforming Saudi Arabia.

Another challenge that is facing the reform plans by Mohammed Bin Salman is the criticism from the former clerics who are very much against the reforms. This is likely to raise tension in Ulama leadership force. The growing antagonism between the crown prince and the clerics will be fruitless because the reforms are centered towards benefiting the Saudis (Stenslie, 2018). The prince has portrayed himself as a devoted Muslim, unlike the former clerics. This paints an adorable picture of Saudi youth both within and internationally, which will influence the world positively for the success of his reform strategies. Assessment of the program shows that it is based on protecting the power and reign of the royal family through good governance that will transform Saudi Arabia to a better state. These transformations will be cited as successful leadership, which will guarantee Ulama more power to lead the nation.

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The economic and social-political progress of any nation is determined by the leadership approach. It is the responsibility of the government through the head to champion development projects. As the crown prince of Saudi Arabia, Mohammed Bin Salman has taken the responsibility to reform the nation. The set reforms will create a good image of the nation to the outside world. This will attract foreign interest, facilitating foreign investments and international business. The development of private sector will and adoption of technology will transform the financial hub, creating more job opportunities, revenue and income for the citizens and the entire nation. Successful implementation of these reforms will save Saudi Arabia from its overdependence on oil, which is the major factor that has undermined economic development. Although the reforms are challenged and criticized by the former clerics, the success of these reforms is dependent on the beneficiaries, who are the citizens. The strategies will also assure successful reign of Mohammed, meeting his dreams to rule the nation over decades.

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The Transformative Leadership of Crown Prince Mohammed Bin Salman and the Reformation in Saudi Arabia. (2018, October 26). GradesFixer. Retrieved March 28, 2024, from https://gradesfixer.com/free-essay-examples/the-transformative-leadership-of-crown-prince-mohammed-bin-salman-and-the-reformation-in-saudi-arabia/
“The Transformative Leadership of Crown Prince Mohammed Bin Salman and the Reformation in Saudi Arabia.” GradesFixer, 26 Oct. 2018, gradesfixer.com/free-essay-examples/the-transformative-leadership-of-crown-prince-mohammed-bin-salman-and-the-reformation-in-saudi-arabia/
The Transformative Leadership of Crown Prince Mohammed Bin Salman and the Reformation in Saudi Arabia. [online]. Available at: <https://gradesfixer.com/free-essay-examples/the-transformative-leadership-of-crown-prince-mohammed-bin-salman-and-the-reformation-in-saudi-arabia/> [Accessed 28 Mar. 2024].
The Transformative Leadership of Crown Prince Mohammed Bin Salman and the Reformation in Saudi Arabia [Internet]. GradesFixer. 2018 Oct 26 [cited 2024 Mar 28]. Available from: https://gradesfixer.com/free-essay-examples/the-transformative-leadership-of-crown-prince-mohammed-bin-salman-and-the-reformation-in-saudi-arabia/
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