On October 2, 2018, Washington Post columnist Jamal Khashoggi visited the Saudi Arabian Consulate in Istanbul. His visit was meant to obtain a divorce decree from his Saudi wife so he could marry a Turkish graduate student, Hatice Cengi. Khashoggi, a fierce critic of the Saudi regime was a thorn in the side of the Saudi ruling family. The Saudi dissident was unaware that a 15 man Saudi hit team was waiting for him in the Consulate.
Soon after entering, Khashoggi was strangled to death. His body was dismembered by a bone saw and has never been found. The facts of the case were clear from a sound system Turkish intelligence had secretly installed in the building. Transcripts of the recordings were later released to the public. A New York Times article published in June 2019 asserted that the Saudi regime was behind Khashoggi's murder. This argument was confirmed by a 2021 CIA Report which stated that Saudi Crown Prince, Muhammad bin Salman, has ordered the assassination.
During the Biden administration Muhammad Bin Salman - known colloquially as MBS - was largely shunned by the United States. Biden was highly critical of the Saudi prince, calling him a "pariah." However, under pressure to bring down inflation after the Covid -19 pandemic by lowering oil prices, Biden visited Saudi Arabia in 2023 and met with MBS which led to significant criticism in the global media.
Under the Trump administration, MBS is no longer considered a pariah. Indeed, Trump welcomed MBS to the White House on November 17th, with great fanfare, including cannons, a red carpet, a military flyover, and a black tie dinner. All the stops were pulled out to try and impress the Saudi ruler and bend him to Trump's desire to have the Kingdom join the Abraham Accords.
The sticking point was MBS' insistence that the only way the Saudi public would accept joining the Accords was if Israel committed to a clear timeline for the establishment of a Palestinian state. Because the far-right Netanyahu regime is adamantly opposed to agreeing to an independent Palestinian state, Trump's entreaties to MBS went nowhere.
However, on a number of other fronts, the United States-Saudi relationship grew must closer. Saudi Arabia will be allowed to purchase F-35 fighter jets, the most advanced in the United States' arsenal. It will also purchase 300 US made tanks and received nuclear technology from the United States. For his part, MBS stated that Saudi Arabia will increase its investments in the United States from $600 million to $1 trillion.
At their meeting, Donald Trump designated Saudi Arabia as a "major non-NATO ally." While largely symbolic, Trump's declaration underscores his desire for closer relations with Saudi Arabia in mutual investments, energy and military cooperation. Trump designates Saudi Arabia as major non-NATO ally during crown prince White House visit
The question many analysts have raised is why did Trump treat MBS to such a lavish reception at the White House? There are at least 3 answers. First, Trump seeks to have foreign countries invest in the US so he can boast of creating new jobs and strengthening the American economy. Second, and this was evident in the pressure he put on MBS to join the Abraham Accords, is Trump's desire to receive a Nobel Peace Prize. Saudi Arabia's becoming part of the Abraham Accords would be a major achievement for Trump by contributing to promoting peace in the Middle East.
But a third reason for Trump's extravagant reception of MBS is clear as well. Trump thinks Saudi Arabia possesses vast financial resources. If there is peace between Israel and Saudi Arabis, he sees a more stable regional environment attracting more investment to the Saudi kingdom and the Arab Gulf states. Trump has been open about his desire to develop real estate ventures in Saudi Arabia and the Arab Gulf states, particularly the UAE. Already, the UAE has donated $2 billion to World Liberty Financial, the new cryptocurrency company Trump jointly runs with Steve Wittkoff.
There is a problem with Trump's calculations. Saudi Arabia is finding it difficult to raise the necessary funds to implement its vaunted Vision 2030 which is designed to transition the kingdom away from its dependence on oil revenues. One of the core policies is to develop Saudi Arabia as a tourist destination and venue for technological and scientific development. While Vision 2030's goals are admirable, it thus far has been a failure.
The largest failure has been MBS' plan to develop Neom (نيوم), a futuristic city in the Hijazi mountains of northwest Saudi Arabia. The city, which combines the term "neo" for new, and m for the first initial of MBS' name and the Arabic word for "the future" (al-mutaqbal) was launched in 2017. Neom is intended to become a luxury tourist destination and tech hub and be 100% carbon free.
Model of Trojena skil resort for 2029 Asian Winter Games
The city would offer multiple amenities. Year round skiing ion the mountains nearby, a resort island, Sindala, in the Red Sea for yachts, the Line, a 110 mile long building with glass exterior which would house up to 9 million residents. Robots would provide many of the mundane services in Neom.
The problem is that Neom's cost, which was initially put at $1.6 trillion, has now reached an estimated $8.8 trillion, 25 times Saudi Arabia's GDP. Efforts to attract foreign investors to shoulder much of the funding for the new city has come up short. Thus, Saudi Arabia's Public Investment Fund (PIF) has been required to provide the funding. With the downturn in oil prices, in part exacerbated by Donald Trump's global tariff wars, has hampered progress.
Part of the cost overruns has been MBS' intrusion in the construction process. His micromanagement has included unrealistic demands of the project. His directives to make architectural changes to the Line have not only added cost but hampered progress.
Not only has the Neom city project been a financial disaster, it has harmed local populations, particularly the Howiatat tribe which was displaced from its traditional are of residence. When the tribal chief objected to the 20,000 member tribe's eviction, he was later shot to death by Saudi security forces. Three other member of the tribe were sentenced to death for peacefully demonstrating and refusing to leave their tribal homeland.
Most of the labor to build Neom city has been drawn from Bangladesh, India and Nepal. Since 2017, 21,000 workers have lost their lives. Laborers have reported extremely harsh working conditions, such as 16 hour days in 120F plus weather. Former Neom director Nadhmi al-Nasr is reported to have said, drive everybody like a slave, when they drop down dead, I celebrate. That's how I do my projects."Expatriate Executives Flee Saudi Arabia’s Bad Bosses
What should the takeaways be from MBS' rule? First, Saudi Arabia lacks the funds to complete Neom City and other Vision 2030 projects. That the Neom project has largely stalled, and has failed to attract international investors should give pause to the United States in depending on Saudi Arabia to serve its interests in the Middle East or domestically. In 2024, The kingdom posed its first ever reduction in its budget in 2024 and will continue to reduce spending in 2026 Saudi Arabia to rein in spending next year
Muhammad bin Salman is a young inexperienced ruler who allows his personal whims and fancies influence his policy decisions. Locking up Saudi princes who he considered potential threats to his rule in the Ritz -Carlton Hotel in 2020 and refusing to let them leave until they transferred their wealth to him should have been a wake-up call for the West. His extensive human rights abuses have caused many foreign investors to forego providing funds for Vision 2030.
Nor will MBS invest $1 trillion in the United States. The declining global demand for oil and MBS' profligate spending do not auger well for the Saudi economy. Bringing World Wrestling Championship, LIV golf tournaments and Six Flag water parks to Saudi Arabia will not erase the kingdom's weakened economic outlook. The Trump Organization may be able to construct a Trump Tower in Riyadh, but may also find that it invested in a mirage
