To what extent has Saudi Arabia been able to position itself as a hub for global flows beyond oil and religion?

Alnassar, Nassar (2024) To what extent has Saudi Arabia been able to position itself as a hub for global flows beyond oil and religion? Doctoral thesis, University of East Anglia.

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Abstract

This thesis investigates the political-economic relationship between global flows and the ambitions of emerging powers, with a focus on Saudi Arabia's efforts to establish itself as a regional hub within the Gulf Cooperation Council (GCC) and beyond. At the centre of this investigation is Saudi Arabia’s Vision 2030, an ambitious project aimed at transforming the country's economy by diversifying away from oil dependency and enhancing the role of the private sector. Vision 2030 represents a strategic shift to position the Kingdom as a key player in global economic and political systems, especially by facilitating new flows of capital, technology, and human resources. The central research question guiding this study is: To what extent has Saudi Arabia been able to position itself as a hub for global flows beyond oil and religion?

In addressing this question, the thesis critically examines the interplay between Saudi Arabia’s religious influence, its historical reliance on oil, and its economic diversification ambitions. This research draws on frameworks within International Political Economy (IPE) and builds its argument through four key areas. First, it explores how institutionalised Islamic power, as analysed through Faiz Sheikh's work in Islam and International Relations, supports or challenges Saudi Arabia's aspirations. The Kingdom’s unique status as the custodian of Islam’s holiest sites confers a significant degree of religious soft power, which plays a critical role in its global standing. However, the thesis also examines the inherent tensions between leveraging religious authority and advancing economic modernisation, especially as Saudi Arabia seeks to attract global flows while maintaining its conservative Islamic values. 4

Second, the research delves into the historical and continued significance of oil in shaping Saudi Arabia's political economy. The Kingdom has long relied on oil revenues to sustain its economic and social structures, making diversification away from oil a complex challenge. The thesis investigates how fluctuating oil prices, geopolitical shifts in global energy markets, and the increasing global emphasis on renewable energy affect Saudi Arabia’s diversification goals. Through case studies on Aramco’s Initial Public Offering (IPO) and the Public Investment Fund (PIF), the thesis highlights the paradoxical situation in which oil revenues are still the primary source of funding for diversification efforts under Vision 2030.

Third, the thesis assesses Vision 2030 itself, as a blueprint for economic transformation and global repositioning under the leadership of Crown Prince Mohammed bin Salman Al Saud. It evaluates the extent to which Vision 2030’s proposed reforms—ranging from privatization efforts to legal and regulatory changes—can transform Saudi Arabia into a dynamic, globally integrated economy. The study emphasizes the critical role of the state in these reforms, particularly through state capitalism, where government-controlled institutions such as sovereign wealth funds (SWFs) and state-owned enterprises (SOEs) continue to dominate key sectors of the economy. While Vision 2030 aims to promote private sector growth, the thesis explores the inherent tensions between state-led development and the need to foster a more competitive private sector, as highlighted by the challenges faced in major projects such as the partial privatisation of Aramco.

Fourth, the thesis examines the regulatory and zoning frameworks introduced to accommodate global flows, especially in finance, while remaining consistent with Islamic principles. The analysis focuses on the development of Saudi Arabia's urban megaprojects, such as King Abdullah Economic City (KAEC) and King Abdullah Financial District (KAFD), which are designed to position the Kingdom’s cities as global hubs for capital, commerce, and innovation. However, the research shows that both KAEC and KAFD have encountered significant challenges, including delays, regulatory hurdles, and difficulties in attracting foreign investment. These issues highlight the broader infrastructural and governance barriers Saudi Arabia faces in its efforts to rival established regional hubs like Dubai and Qatar.

Throughout the thesis, Saudi Arabia's dual role in the global order is emphasised—one based on material power, derived from its vast oil wealth, and the other on immaterial influence, rooted in its religious leadership. As the global economy moves towards greater technological specialisation and renewable energy, the thesis questions how Saudi Arabia will navigate these challenges while maintaining its religious authority and economic ambitions. The Kingdom’s ability to balance its material and immaterial sources of power will play a crucial role in shaping its future within the global political economy.

This study contributes to ongoing discussions about globalisation, state capitalism, and economic reform in the Gulf region. By engaging with theories of state capitalism, Global Production Networks (GPNs), and global cities, the thesis offers a comprehensive analysis of Saudi Arabia’s strategic efforts to deepen its integration into global production and trade networks. While Vision 2030 is a bold and forward-thinking reform initiative, the research highlights that the Kingdom is on the right path toward becoming a global hub for flows. However, its success will depend on addressing certain economic, political, and cultural challenges. With sustained commitment to reform and careful navigation of these complexities, Saudi Arabia has the potential to fulfil its Vision 2030 ambitions and solidify its place as a key player in the global economy.

Keywords: International Relations, International Political Economy, Global flows, Global Cities, State Capitalism, Global Production Networks, Globalisation, The Kingdom of Saudi Arabia (KSA), Vision 2030, Oil, Religion, Economic diversification, Economic Reform, Political Reform, and Social Reform.

Item Type:	Thesis (Doctoral)
Faculty \ School:	Faculty of Arts and Humanities > School of Politics, Philosophy, Language and Communication Studies (former - to 2024)
Depositing User:	Chris White
Date Deposited:	26 Mar 2025 14:42
Last Modified:	26 Mar 2025 14:42
URI:	https://ueaeprints.uea.ac.uk/id/eprint/98886
DOI:

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