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January 2016

Saudi Arabia in Policy Hell By David Goldman

Last week’s mass executions in Saudi Arabia suggest panic at the highest level of the monarchy. The action is without precedent, even by the grim standards of Saudi repression. In 1980 Riyadh killed 63 jihadists who had attacked the Grand Mosque of Mecca, but that was fresh after the event. Most of the 47 prisoners shot and beheaded on Jan. 2 had sat in Saudi jails for a decade. The decision to kill the prominent Shia cleric Nimr al-Nimr, the most prominent spokesman for restive Saudi Shia Muslims in Eastern Province, betrays fear of subversion with Iranian sponsorship.

Why kill them all now? It is very hard to evaluate the scale of internal threats to the Saudi monarchy, but the broader context for its concern is clear: Saudi Arabia finds itself isolated, abandoned by its longstanding American ally, at odds with China, and pressured by Russia’s sudden preeminence in the region. The Saudi-backed Army of Conquest in Syria seems to be crumbling under Russian attack. The Saudi intervention in Yemen against Iran-backed Houthi rebels has gone poorly. And its Turkish ally-of-convenience is consumed by a low-level civil war. Nothing has gone right for Riyadh.

Worst of all, the collapse of Saudi oil revenues threatens to exhaust the kingdom’s $700 billion in financial reserves within five years, according to an October estimate by the International Monetary Fund (as I discussed here). The House of Saud relies on subsidies to buy the loyalty of the vast majority of its subjects, and its reduced spending power is the biggest threat to its rule. Last week Riyadh cut subsidies for water, electricity and gasoline. The timing of the executions may be more than coincidence: the royal family’s capacity to buy popular support is eroding just as its regional security policy has fallen apart.