Establishing Control: Economic Affairs

Abstract

This chapter describes in depth how MBS and MBZ have established their control by dominating most aspects of Saudi Arabia and the UAE’s economies and economic policymaking. Firstly, the extent to which their inner circles have been able to expand their influence over major economic institutions is considered, including most notably their command over hydrocarbon-related authorities and sovereign wealth funds. Secondly (and specific to the UAE’s federal dimension), the nature of Abu Dhabi’s economic supremacy is discussed, including its steadily growing influence over Dubai’s economic affairs. Thirdly, both rulers’ extensive anti-corruption campaigns are explained, including MBS’s apparent ‘shakedown’ of once influential Saudi businessmen. Finally, MBS and MBZ’s attempts to reform tentatively Saudi Arabia and the UAE’s respective rentier structures are studied, including their careful ‘give and take’ approach to removing and then often re-instituting various subsidies and benefits.