Man, this video just gets more and more right with time. When I uploaded this one just over two months ago, it presented three reasons why Saudi Arabia should get the heck out of Yemen as soon as possible. Today I would add at least two more. First, the war is putting the safety and security of Saudi Arabia itself in more and more jeopardy by the day. Just a few weeks ago, the Yemenis pulled off history’s most devastating attack on Saudi oil infrastructure. This attack, and the indifference of world oil markets to it, both gravely undermine the Saudis. Over this past weekend, confused reports emerged that the Saudis may be losing large battles on or distressingly close to their own territory. Whether those reports are true or not, the fact that they can be believed should be terrifying to the Saudis.
There is an out from all of this. The Houthis are aware that their complete dominance of the battle space is actually a problem for them. If they push their advantage, and make real inroads in to Saudi territory, they could prompt a US response. They have proved their independence, and remain more interested in peace than the Saudis are. The Houthis have offered to cease attacks on Saudi territory, if the Saudis will agree to do the same. This is a real opportunity. So far, the Saudis have reacted by murdering a bunch of Yemeni families from the air. They should really start pursuing peace before it’s too late.
I wish I could make this channel about Yemen all the time. But I can’t. It would just get too depressing. It’s important to hit this topic as often as I can though. This doesn’t just come from my opposition to Saudi Arabia’s government, and the way they destabilize the region. Yemen is truly in the midst of a catastrophe. One of my regrets from the early stages of my Yemen series is the way that I use the UN’s blanket “12,000 people killed” language. The UN stopped counting the dead in Yemen years ago. A recent report puts the figures at over 55,000 dead.
And those are just the figures for the people who were killed directly by fighting. Large scale starvation is now reckoned to have killed 85,000 children in Yemen as well. The bodycount is mounting and the violence is getting worse. For nothing. For less than nothing. The Iran excuse the Trump administration keeps reaching for is a fantasy. It’s important for folks to know about this, because it’s not a difficult problem. The US could stop the war almost immediately, and it would lose nothing by doing so. Information is the key to the end of the tragedy in Yemen. That’s why I’ll keep making vids like today’s video, and why I’m quite proud of my series on the topic.
Today’s video tries to present the relationships that Saudi Arabia has with Turkey and Indonesia. I don’t really do much of this on this channel, unless we’re talking about one of the world’s great rivalries, like Saudi Arabia vs. Iran. That’s too bad. Almost all of the videos on this channel deal with the way the United States relates to some other country. That’s only natural, as I am a US citizen, and all of us are living in the shadow of the world’s most powerful country to some extent. But I think a lot of valuable detail gets left out if we just focus on the relationships between the US and other countries. And that detail is only getting more important.
Power is flattening. The old imperial model, and the early US world system lent itself to a “hub and spoke” approach. Colonized or just weaker countries tended to have one all important relationship, and then lesser ones with neighbors or other countries with which it had some kind of historical connection. Nowadays more and more places are getting rich, and therefore their relationships are getting a lot more complex. Business and cultural ties can strengthen for a wide range of reasons. Everything’s getting a lot more interesting. I hope to do what today’s video does more often, and cover more relationships between countries outside of the context of the United States.
I’m proud of today’s video, but I wish I had delved into the topic of the Muslim Brotherhood a little more deeply before making it. I have of course looked into the issue in the past. This week I’m reading a lot about 1848, so I ended up interpreting my long settled views on the MB through that lens. Sadly I didn’t do a review of what the “Muslim Brotherhood” is supposed to be in the countries of the Arab world in 2018, until I got to the editing process. I was kind of blown away. The whole Muslim Brotherhood theory really makes no sense at all.
Saudi Arabia really doesn’t like the Muslim Brotherhood. Supposedly. In Saudi Arabia’s view of the world, it’s the Muslim Brotherhood that’s responsible for all the Sunni terrorism over the past couple decades. Saudi Arabia has nothing to do with it. It’s not Saudi Arabia, it’s this vast, international conspiracy that the Saudis are heroically fighting! Qatar’s support for the Muslim Brotherhood is supposedly one of the main reasons that Saudi Arabia is trying to isolate Qatar democratically. Yet in Saudi Arabia’s failed invasion of Yemen, one of Saudi Arabia’s great allies… is the local branch of the Muslim Brotherhood. It’s amazing how completely that undermines the narrative, but just doesn’t get talked about much. There is no real connection to an over-arching group or philosophy.
That’s because there is no over-arching group or philosophy. The Muslim Brotherhood is very powerful in Egypt. Egypt’s military is now trying very hard to crush it, as it has been doing on and off for at least 70 years now. The Brotherhood’s presence elsewhere is an artifact from the dimly remembered past, when Egypt was the leader of the Arab world. The Muslim Brotherhood is as much a parody of what it once was, as Egypt itself is. The most significant problem for the Saudi/US theory of the all powerful Muslim Brotherhood is the movement’s complete absence from Syria. The Assads apparently did a pretty good job of slaughtering the local chapter decades ago. But if the MB was this powerful force for world-wide terror… wouldn’t it have some kind of “boots on the ground” in Syria’s almost decade long coming out party for all of radical Islam’s worst pathologies? Not a thing. The Muslim Brotherhood doesn’t really exist as an international force. Wish I had remembered to get that in today’s video. But I still think it’s pretty good.
So let’s talk about King Abdullah Economic City. In today’s video, I may give the impression that it doesn’t exist. It totally does! It was established in 2005, and much like NEOM, the mega city the Saudis are currently pushing, it was supposed to revolutionize everything!!! 13 years later only about 15% of the 100 billion dollar city has been built. The other three cities that were meant to be built at the same time are somewhere between 30% and 0% completed. Theirwikipediapages make for some depressing reading. Depressingly familiar reading.
The objective of SAGIA’s “10 x 10” program, which ran from 2005 to 2010, was to place Saudi Arabia among the world’s top ten competitive investment destinations by 2010.
Launched in 2006, the Economic Cities program was designed to drive toward greater competitiveness, job creation, and economic diversification.
In developing economic cities, over a thousand of the world’s free zones were surveyed. The sixty deemed most successful were studied to determine key success factors. The objectives of the Economic Cities were to promote regional development, achieve economic diversification, create jobs, and enhance competitiveness in Saudi Arabia. Four new cities were identified and thus developed: King Abdullah Economic City, Jazan Economic City, Prince Abdulaziz Bin Mousaed Economic City, and the Knowledge Economic City, Medina.
When you read some of this 15 year old public relations copy, you realize just how familiar it all is. It’s the same thing as Vision 2030, but it’s Vision 2010. It’s all very sad. Back in King Abdullah’s time it was possible to imagine that Saudi Arabia could pull it off. Their oil was still one of the most valuable commodities in the world. An Aramco IPO back then would have yielded hundreds of billions of dollars. Instead the economic cities plans just sort of fizzled out during the extraordinary expenditures the government made to bribe the populace out of an Arab Spring. After Abdullah died in 2015, the focus shifted to new projects.
A sensible ruler ca. 2015 would have recommitted to all the plans Abdullah had made, and brought them to fruition. It would have made a lot of sense. But that wasn’t ambitious enough for King Salman, and Crown Prince Muhammad Bin Salman. They are diverting scarcer and scarcer funds to all of their new cities, and losing investments in foreign companies. They’ve gotten a lot of uncritical support in the Western Press, but that’s because they are paying for it. So yes, the King Abdullah Economic city exists, as a shell of what it could be. The bottom third is the only section of this BBC article on King Abdullah Economic City that is worth reading. After repeating the standard public relations texts, it lays out what a disappointment the project has been. NEOM might get there too. But it won’t ever become what was promised. Today’s video lays out why.
So why am I the only guy talking about this? In today’s video I connect a bunch of dots to point out that Saudi Arabia’s investment program isn’t going to help them out of their current mess. In fact that investment program is more than a bit nuts. Funds that are desperately needed to reinvent the country are being sent to some of silicon valley’s riskiest money pits. It’s possible that these investments will make some money eventually, but it isn’t what I’d call likely.
The truth is that all of this information is out there. Today’s video wouldn’t be possible without some great financial journalism done by folks at Bloomberg and the Financial Times. The FT’s “Saudi Sovereign Wealth Fund Scrambles For Resources” in particular was very useful. But this stuff is often behind paywalls, and only read by nerds like myself. This information is all out there, and it’s being acted on by serious investors. That’s why that magical city, NEOM, isn’t going anywhere, and its German CEO has already been shuffled off to another job. That’s why the Saudi-Blackstone infrastructure fund announced at the Saudi-Trump orb fest last year can’t find any other investors. The broader situation really is dire, far beyond the headline grabbing problems with Tesla and Uber.
This is a slow motion catastrophe. But it hasn’t made much of an impact on the broader consciousness yet. That’s because the Saudi PR machine is still working in high gear. Bloomberg, FT, and occasionally the New York Times will follow up on all these projects and their failings, in articles that are only read by a few tens of thousands of people. But when a new project is announced it’s in ALL the outlets, with videos, puff pieces, and endless social media placements. The more disturbing facts are all out there, and I’m proud that I got to bring them to you with today’s video.
Full disclosure: I own some Tesla stock and I’m actually pretty bullish on the company’s long-term chances. If Elon Musk can get his head on straight that is. That doesn’t mean it’s a good investment for Saudi Arabia…
I don’t necessarily have too much trouble with hypocrisy. Any adult realizes that we’re all hypocrites to some degree. But we should know what we’re doing. And the level of hypocrisy illustrated in today’s video is pretty extraordinary. Yemen and Ukraine are two of the world’s hot spots. Essentially the same thing is happening in both countries. A more powerful neighbor is trying to invade and change them. If we care about international law, we should be more willing to make these comparisons more often.
Also, watching today’s video, I realized that I’m being deeply hypocritical in the video. I was so excited to make this comparison that I left my own country out of the analysis. The United States invades countries more frequently than anybody else does. The vid should definitely have mentioned that. But I think the point still stands. One day the US might be able to be constrained by international law as well. If we’re going to get there, we have to be willing to try to look at all conflicts with a little more objectivity. Which is hard for hypocrites like us…
One of the most important aspects of development in Saudi Arabia, and in the Gulf more broadly, is the fact that it often doesn’t happen. The Gulf countries are mostly run by monarchs, and they all have pharaonic ambitions. They want to build monuments, cities, and other great works that illustrate their magnificence. If it’s something as simple as a museum or giving a foreign university a local campus it happens. But the great ambitions that mix local development, innovation, or anything else that requires real buy-in from the people of the country, either never happen, or happen in such a small way as to make the initial announcements look ridiculous.
When NEOM, the 500 billion USD sustainable city was announced, I couldn’t help but think of the UAE’s Masdar city. It was announced with similar fanfare back in 2006. It was going to be green, it was going to be amazing, there were going to be tons of people there! Parts of Masdar did end up being built, but most of the plan was scrapped, and the Guardian now describes it as in danger of becoming a ghost town. Masdar isn’t the only hi-tech wonderland city that never was. Saudi Arabia has one too. Anybody remember King Abdullah Technology City? It was the last king’s NEOM. It was still moving along, or at least reported to be so back in 2015.
And that’s the important bit here. All of this constant churn of projects seems to be done more for a foreign press audience than to create real change in Saudi Arabia. I don’t doubt the sincerity of any of the Saudi Royal reformers, I just doubt their ability. The world press gives them a free pass on all of this. Almost none of the articles reporting on NEOM mentioned King Abdullah city or Masdar. Actually, now that Abdullah is dead, his city seems to have disappeared from the news completely. It’s clear that it’s now longer a public relations priority, and I’d guess that the 100 billion that is supposed to build that city is now quickly moving on to MBS’s NEOM. This is not a good way to run anything. But the Saudis get a pass from the world press. Today’s video, on the ridiculousness of the Saudi Aramco IPO is an attempt to push back on that a bit.
War Sucks. This is something we’ve lost touch with in the United States. It’s a central truth that’s become further and further from us since the middle of the 20th century. Not that our World War II experience was all that bruising either, compared to almost anybody else in Europe and Asia. Since Vietnam our military has been all-volunteer, and in the 21st century our death-dealing has become more remote, thanks to drones and smarter weapons. Our insulation from all of the consequences of war has made us more willing to use it as a tool of policy or economic stimulus.
Not for Lebanon. They don’t have that luxury. For fifteen years, it was their tiny country that was torn apart by the political fantasies of foreign countries. This video lays out how that horror has allowed them to save us from a broader war, both over the past six years and in the past month in particular.
Since I started laying into Saudi Arabia with gusto about six months ago, folks have been bringing any number of stories to my attention. It seems like every month or so there is a new positive story about Saudi Arabia running in every major Western news outlet. It’s like clockwork. Actually it’s just like clockwork.
Some of these stories represent real advances. Some do not. But we’re not seeing them because of their intrinsic merit, we are seeing them because Saudi Arabia gives tens of millions of dollars to the best public relations people in the business. Last week saw one of the most coordinated and sophisticated pushes yet. This video mentions an interview with the Guardian, but there were customized approaches to a number of outlets. The New York Times gave their launch of a new economic zone above the fold treatment.
So I tend to be pretty skeptical when somebody comes to me with news of Saudi Arabia’s changes for the better. There was one element in the onslaught this week that surprised me however. MBS’s claim that Saudi Arabia is now a moderately Islamic country was legitimately shocking to me. Shocking enough that I made this video.