Daneshmand
ELITE MEMBER
- Joined
- Dec 5, 2014
- Messages
- 3,109
- Reaction score
- 43
- Country
- Location
That will be a disaster.
Saudi Arabia's break-even price for oil production is a mere $15 a barrel, second-lowest only to Kuwait.
Now I had read that KSA had stashed a great deal of cash away during the most recent oil boom and currently holds foreign reserves equal to its GDP. And that it would survive adverse conditions. No idea about UAE though.
The Saudi breakeven price of oil is actually 106.50 dollars per barrel: https://www.foreignaffairs.com/articles/saudi-arabia/2015-12-03/beyond-break-even-prices
At this price, they will be able to balance their budget. As the articles quoting IMF say, Saudi cash reserves are running out too fast. At the rate, the reserves are being spent they will go bankrupt pretty soon. And since they have to other industry comparable to oil income, their only option to postpone the coming doomsday is to cut down spending and this will cause social discontent and instability, considering the fact that Saudis have to import everything from cars to food to maids to engineers to doctors to soldiers etc.
Their situation is pretty much dire. Already big international money is betting on Saudis to go bankrupt: http://money.cnn.com/2016/01/27/investing/saudi-arabia-stocks-oil-prices-ackman/
This is something you rarely see in international scene.
But UAE will survive since they have a smaller population and they have Dubai, which is a conduit for business in the region. In fact Dubai is very happy with sanctions removed on Iran since they will make huge amount of money by doing business with Iran.
But Saudi Arabia is sinking in quick-sand. And it is sinking fast.
when I don't find Persian prostitutes in Arab capitals anymore I will believe that Iran has benefitted...
Your personal attacks and foul mouth will not save Saudis. The Saudis dug their own grave. They are fighting a war and they are going bankrupt. This is the reality.
Meanwhile Iran is becoming more and more powerful. There are Russian, American, French, Pakistani and Japanese prostitutes too. And this means nothing.
You have failed to put forward logical argument. All you can come up with, is just such drivel. This goes to show your level of irrationality. Nothing more.
This is the problem with your kind. That you bunch are illogical. A hallmark of Takfirism.