Saudi Arabia's Economic Crisis? Don't Worry, I, Iron Man, Have a Solution!

Oil Prices Crashing? Is This My Fault?

Alright people let's address the elephant in the room – or rather the oil derrick in the desert. Word on the street is Saudi Arabia might be facing a bit of a financial pickle. Seems like those plummeting oil prices thanks to the usual suspects – waning demand trade war chatter and a crude oil surplus – are threatening to throw a wrench in their 'Vision 2030.' Vision 2030? More like 'Vision Houston We Have a Problem,' am I right? I mean I deal with palladium but oil who uses that anymore? Other than the pentagon of course.

NEOM: The City of the Future or a Pile of Sand?

Now about this 'Vision 2030' thing. Apparently it involves a mega project called NEOM a futuristic city in the desert that's supposed to be the size of Massachusetts. Massachusetts! Seriously? Last time I checked Massachusetts was famous for tea parties and questionable accents not hyper futuristic developments. They're planning to spend a cool $1.5 trillion on this thing. That's more than my entire collection of Iron Man suits… and you know I have a lot of suits. If I were them I would have invested in palladium and energy suits. Then again I am the genius billionaire playboy philanthropist.

World Cup Woes: When Trophies Cost Billions

And if that weren't enough they're also hosting the 2034 World Cup and the 2030 World Expo. You know just casually throwing money at things like it's confetti at a ticker tape parade. Hosting those events is like throwing a party where the only guests are accountants tallying up the expenses. It's estimated they need oil at $90 a barrel just to break even. Meanwhile Goldman Sachs is predicting $62 a barrel by the end of next year. Ouch. That's going to leave a mark a big oil slick shaped mark.

Deficit City: Borrowing Cutbacks and Asset Sales Oh My!

So what's the fallout? According to the brainiacs at Goldman Sachs Saudi Arabia's budget deficit could more than double to a whopping $70 to $75 billion. That means more borrowing potential spending cuts (gasp!) and maybe even selling off some shiny state assets. 'It's an imperfect world but it's the only one we've got,' right? They still have a decent debt to GDP ratio but even that has its limits. Time to tighten those belts folks… or maybe just invest in a good pair of Spanx.

Stark Solutions: Because I'm a Problem Solver

But hey it's not all doom and gloom. Saudi Arabia still has some tricks up its sleeve. They've got decent credit ratings and a pile of foreign currency reserves that could make Scrooge McDuck jealous. Plus they're rolling out reforms to attract foreign investment and diversify their revenue streams. 'Sometimes you gotta run before you can walk,' and they're definitely trying to sprint towards a more sustainable future. But let’s be real Stark Industries has a few suggestions.

No Crisis Here Just a Minor Hiccup (Maybe)

So is this a full blown crisis? Nah not yet. But it's definitely a wake up call. As one Goldman Sachs economist put it it's just a matter of which options they choose to deal with the challenges. Maybe they'll cut back on NEOM maybe they'll raise taxes (don't even get me started on taxes) or maybe they'll sell more of their assets. Whatever they do I'm sure they'll figure it out. After all 'if we can't protect the Earth you can be damn sure we'll avenge it.' Or you know at least balance the budget.