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That’s another thing I never got about Saudi’s investments. To me the obvious strategy with all the money would have been to not invest in empty skyscrapers or
by ajmurmann 7y ago
That’s another thing I never got about Saudi’s investments. To me the obvious strategy with all the money would have been to not invest in empty skyscrapers or foreign investments, but pick two or three areas in which you massively bolster research and investment in an area like solar energy. Investment would be local and you try to attract all to talent in the field for both fundamental research as well as to fund companies.
Investing in the Vision Fund might safe the cash, but does little for the economic future of UAE.
- lazyjones 7y agoNorway did the same thing, it has worked very well for their economy so far.
- olivermarks 7y agoNorway's sovereign wealth fund is vastly larger than the Saudi Arabian one, SA don't have much room to maneuver if the Aramco ipo doesn't work and these investments fail
- lazyjones 7y ago> vastly larger than the Saudi Arabian one By one order of magnitude these days, the Norwegian fund's market value was less than $100b in 2004 though.
- smnrchrds 7y agoMinor nitpick, but UAE (United Arab Emirates) is not the same as Saudi Arabia. It is a neighbouring country.
- robin_reala 7y agoNot really a minor nitpick.
- notduncansmith 7y agoWhen you have so much money to play with, there is just no one basket to put even most of your eggs in. Yes, they have put many into Vision Fund, but many other arenas (especially political ones) demand funding and will not go unfed by mama bird and her oil money.
- smegger001 7y agoThats because the Saudi wealth fund, is not for Saudi Arabia but House Saud.
- throw313123 7y agoThe Saudis have also done that with KAUST; from what I heard they have turned off all their weird laws in this region of SA (like a SEZ), and were hiring aggressively a few years ago (from the US). I occasionally stumble on some interesting projects from this University, but I for one would be very weary of moving to a desert region where women were disallowed from driving until a few years back, and need to be draped from head to toe in black. To be fair, there is something more in the picture. UAE for instance is much more cosmopolitan, but has failed to be a research hub, in contrast to rich city states like Singapore. Iran, their neighbour, produces some very smart people however - who then inevitably move out, considering the flavour regime in that country.
- smcl 7y agoHate to be that guy but I see it so often on HN that I think it’s worth correcting. You’re wary of moving to a desert special economic zone if you are unsure or suspicious of it You’re weary of it if you have moved to many such zones already and you are a bit sick of it
- pdub123 7y ago"in contrast to rich city states like Singapore." You mention city states in the plural sense. Tell me-- What other city states would you be referring to? I doubt you have others in mind-- in which case, you shouldn't be speaking in plural in an attempt to exaggerate your argument.
- puranjay 7y agoSaudi Arabia has a problem in that its far larger than UAE and it is also the home of Islam. Loosening cultural restrictions might fly in Dubai, but I'm not sure the Muslim world would be as okay with the same happening in the country that hosts their most sacred site.
- nradov 7y agoWhy not? Most of the Muslim world is far less restrictive than Saudi Arabia. And even if they don't like some future loosened restriction there's nothing they can do about it.
- RomanBob 7y agoSaudis do not want smart people being middle class in their country. That would ruin their theocratic state.