Table Of ContentTHE COMING
ECONOMIC
IMPLOSION OF
SAUDI ARABIA
A Behavioral Perspective
David Cowan
The Coming Economic Implosion of Saudi Arabia
David Cowan
The Coming
Economic Implosion
of Saudi Arabia
A Behavioral Perspective
David Cowan
Boston College
Boston, MA, USA
ISBN 978-3-319-74708-8 ISBN 978-3-319-74709-5 (eBook)
https://doi.org/10.1007/978-3-319-74709-5
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To Hanny, David and Yasmin with love and thanks
Preface
In this book, I offer up the possibility of the implosion of Saudi Arabia,
with the current economic situation it faces as the catalyst for this implo-
sion. The Saudi monarchy and government are I believe aware of this
possibility, though they may believe it to be more remote than I suggest
by my title. Certainly the common Western perception is that such a
failure is highly unlikely, but I suggest such a view in the academy is back-
ward looking and complacent. Speaking to Saudis in different places,
there is a concern that failure is a real possibility balanced by an optimism
that God willing there will be success. The monarchy and government
leadership are taking action, but I provide here an argument that posits
more is needed. Analyzing the problems Saudi faces means understand-
ing the economic, political and religious dimensions of the Kingdom. To
do this requires an interdisciplinary approach of economic, political and
religious disciplines, which I have humbly sought to provide. I say hum-
bly, because no doubt, as with all interdisciplinary works, I may have
missed some nuance and the various disciplinary experts will want to
qualify some of my arguments. I ask their indulgence in order that all
readers may see the bigger, albeit speculative, picture of what is a complex
situation in a Kingdom beset with apparent contradictions. My conclu-
sion may surprise some, in that I am suggesting in this era typified by
secularism and Islamophobia that Saudi needs to be more Islamic rather
than less so. As a Christian theologian by training, this may seem even
vii
viii Preface
more odd. However, I suggest that thinking more deeply about Islamic
solutions to the problem the Kingdom faces will create a balance between
the culture and the economic problems in the context of globalization.
To this end, I offer a six-point agenda for discussion in the hope that this
book will reach places where this dialogue is needed.
I have written, worked and thought about Islamic economics and soci-
eties for over two decades, my first writing appearing on the subject in the
early 1990s. The last five years have been spent working in Saudi Arabia,
training leaders and managers in one of the Kingdom’s top corporations.
Any errors in understanding are mine, but I have learned much from
hundreds of discussions formal and informal with Saudi colleagues. There
are many I could list, but I will single out two in particular to mention:
first, my good friend Hisham in Riyadh and second I am indebted to
conversations with Prince Turki bin Faisal Al Saud. I am also indebted to
the Boisi Center for Religion and American Public Life at Boston College,
which provided me with an intellectual home as a visiting scholar. Thanks
go to Erik Owens, Associate Director, for his professional and personal
friendship while at the Center, Alan Wolfe founder of the Center and
administrator Susan Richard who was always on hand to help. Grateful
thanks go also to my research assistant at Boisi, Alison Hiatt. The Boisi
Center co-hosted with the Islamic Civilization and Societies Program
and the Winston Center for Leadership and Ethics at Boston College my
paper “Setting the Agenda for Global Dialogue: A Theoretical and
Practical Approach to Business Ethics in Saudi Arabia,” where I was able
to outline some of the arguments and the six-point agenda pursued in
this volume. My thanks go to the Islamic Civilization and Societies
Program Associate Director Kathleen Bailey for her support. That lecture
subsequently became a paper at the Gulf Research Meeting 2015 held at
Cambridge University and subsequently published. I am indebted to
Mohamed A. Ramady, Visiting Associate Professor, Finance and
Economics, at King Fahd University of Petroleum and Minerals, Saudi
Arabia, for his support and encouragement in thinking through the
agenda I proposed there.
As ever there are the most personal debts, by which I refer to my fam-
ily. My wife Hanny has given me her usual stellar support for my work,
Prefac e ix
and without her I could not do what I do. My children David and Yasmin
always have my deep love and support and I remain proud of everything
they do.
Boston, MA, USA David Cowan
Contents
1 Saudis Misbehaving? 1
Part I Economic Implosion 21
2 Revolution or Obituary? 23
3 Deconstructing the Saudi Economy 53
4 The Islamic Welfare State 79
Part II Political Implosion 103
5 Oil Dependency and Cold War Politics 105
6 A Theocracy Under Threat 133
7 A Changing Political Theology 159
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xii Contents
Part III Religious Implosion 181
8 No Democracy Please, We’re Saudis 183
9 Fideism I 205
10 Fideism II 231
Part IV Conclusion 251
11 Theocracy and Secularization 253
12 An Islamic Behavioral Perspective 279
Index 311
Description:The kingdom of Saudi Arabia is at a crossroads economically, and faces the challenge of a weakening economy that could implode before 2030, the year set as a timetable by the kingdom in its Vision 2030. How it navigates its way out of these economic troubles demands understanding a complex of religi
