Why didn't the Arab nations collapse after the oil

Homework requests go on >>>/wsr/

>>1841246
Are you the self-appointed board police?

>>1841241

cash reserves

>>1842366
He's got my vote!

>>1842366
I too vote for board police. Please arrest the pollacks

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>>1842379
>>1842381
You spent more time on trying to derail the thread than I did on creating it.

>>1841241
Real answer? Like high level answer? Because all societies/governments only work because of a implicit agreement between the people to support the underlying system. Inculding but not limited to foundation myths, shared goals, trust, And that pact wasn't broken with oil prices

>>1842385
It looks like Saudi Arabia still has a trade surplus despite of the budget deficit worries.

>>1842366
Just pointing out where you can get better help since you only ask a narrow question and are obviously not trying to start an actual discussion about business.

>>1841241
You're underestimating how large their margins were.
Anything above $40 long term is fine and dandy for Saudi.

>>1842381
Typical statist

It's really related to the Canadian oil prices too. And fracking in Oklahoma.

I wish I could say more, but they'd surely kill me.

>>1841241
they're actually considering IPOing their state owned company, Aramco. Or they'd only offer a small % of the company to raise funds.

>>1841241

watch caspian report

>>1841241
The Gulf Arabs' production costs are super low. It cut into their margins, which is why you've seen Saudi Arabia start taxing tobacco and soda, but overall they made up for it by increasing their market share by not reducing production for the longest time, which pissed off the rest of OPEC, who didn't have such low operating costs as the Gulf Arabs.

The Saudis need to do budgetary reform and I think that goes for Qatar as well. Since oil is very unlikely to hit triple digits because the US is now the swing producer, the Saudi long term government revenue will be lower than what it was projected, which should affect future entitlement spending. However, entitlement cuts threaten the stability of the Saudi state, since Saudi Arabia pretty much takes care of its people from cradle to grave with the oil money, so this could risk social unrest. More likely, they'll probably just release more shares of Saudi Aramco, which they're planning on IPOing in like 2018. It's supposed to be worth like $2 trillion so it should be a steady source of income for some time.

>>1841241
Because Saudi Arabia doesn't piss all of their profit away on handing out welfare like Venezuela

>>1845144
>Because Saudi Arabia doesn't piss all of their profit away on handing out welfare

Are you high?

A lot of golf states do exactly that. Their citizens (and only their citizens) enjoy an almost absurd level of benefits, low working hours, comfy public employments and free shit. In 2015 Saudi Arabia just handed out a cool additional 20 billion dollars to all state employees, soldiers, students and pensioners for basically no reason at all.

They went on a massive spending and welfare spree even beyond the usual in the aftermath of the Arab Spring to make sure their people are nice and comfy and don't even think about joining the revolutions.