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Allegations Against Saudi Crown Prince: Abuse of State Funds and Power

 Human Rights Watch (HRW), a prominent US-based global human rights watchdog, has published a detailed 93-page report accusing Saudi Arabia’s Crown Prince Mohammed bin Salman (MBS) of abusing state funds and power. According to the report, under the guise of anti-corruption campaigns, the Crown Prince has systematically consolidated control over the nation’s wealth and economy. These allegations bring into focus MBS’s governance model, raising questions about its implications for Saudi Arabia’s economic stability, human rights, and the broader welfare of its citizens.

The Anti-Corruption Campaign: Concentration of Power

In 2017, Crown Prince Mohammed bin Salman initiated a high-profile anti-corruption drive shortly after assuming executive powers from his father, King Salman. While presented as a necessary measure to curb corruption in Saudi Arabia, HRW and other critics argue that the campaign targeted influential business magnates, political rivals, and dissenters.

Many wealthy individuals, including princes, businessmen, and officials, were reportedly detained in luxury hotels, such as the Ritz-Carlton in Riyadh, under opaque legal processes. Assets worth billions of dollars were seized during these detentions. These confiscated funds and companies were funneled into the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, controlled by MBS himself.

HRW’s report underscores how the PIF’s total assets skyrocketed from approximately $84 billion in 2013 to an estimated $925 billion in 2024. Critics contend that while these funds ostensibly serve national development projects, they simultaneously augment the Crown Prince’s personal influence over the economy. This raises concerns about the lack of transparency and whether these resources truly benefit Saudi citizens.

Human Rights Abuses: Workers in PIF Projects

The HRW report delves into the treatment of workers employed in ambitious PIF-backed projects, particularly in the context of Saudi Arabia’s Vision 2030 initiative. Projects like NEOM, a $500 billion futuristic city in the Tabuk Province, aim to position Saudi Arabia as a global hub for innovation. However, these mega-projects are riddled with allegations of human rights violations.

HRW highlights that most laborers working on PIF-funded initiatives are either migrant workers or economically marginalized Saudis. They face exploitative conditions, including:

  1. Excessive Working Hours: Many workers are forced to toil for extended hours in extreme desert heat, risking their health and safety.
  2. Abuse and Mistreatment: Reports of verbal and physical mistreatment of workers by supervisors are widespread.
  3. Violations of Labor Laws: Saudi authorities have allegedly disregarded international labor standards, especially concerning workplace safety and fair wages.

The organization notes that laborers in NEOM and other PIF projects often have limited access to grievance mechanisms, compounding their vulnerabilities.

Economic Transformation and its Dual Edge

Crown Prince Mohammed bin Salman’s Vision 2030 aims to reduce Saudi Arabia’s dependence on oil by diversifying its economy into sectors such as tourism, technology, and renewable energy. Central to this vision is the PIF, which has invested in high-profile international projects, including stakes in Uber, Lucid Motors, and global entertainment ventures.

While these investments showcase Saudi Arabia’s aspirations to modernize, HRW questions their long-term viability and inclusiveness:

  • Economic Centralization: By placing significant wealth and decision-making power under the Crown Prince, critics argue that Saudi Arabia risks fostering economic imbalance and political instability.
  • Exclusion of Citizens: Despite the ambitious economic reforms, many Saudis, especially those from rural areas, feel excluded from the benefits of these initiatives.
  • NEOM as a Case Study: The NEOM project, envisioned as a utopia for innovation, has displaced local tribes and faced resistance from indigenous communities. HRW emphasizes the lack of consultation and compensation for affected populations.

HRW’s Call for Global Accountability

Human Rights Watch has urged international investors to reconsider their partnerships with the PIF, highlighting the ethical risks tied to projects under MBS’s oversight. The organization advises global businesses to demand transparency in PIF dealings and to refrain from involvement in ventures that perpetuate labor exploitation or human rights abuses.

The report further recommends independent monitoring mechanisms to ensure compliance with international labor and human rights laws. HRW also calls on the Saudi government to implement structural reforms to enhance accountability, transparency, and inclusivity in its economic agenda.

Global Implications of MBS’s Leadership

The allegations against Mohammed bin Salman resonate beyond Saudi Arabia’s borders, posing broader questions about authoritarian governance, unchecked power, and economic modernization.

  1. Foreign Policy Ramifications: MBS’s consolidation of power has drawn criticism from Western governments and human rights organizations, complicating Saudi Arabia’s relationships with its allies.
  2. Investor Dilemma: While Saudi Arabia remains an attractive destination for investment due to its financial resources and strategic location, concerns over governance and ethical practices present significant risks for global investors.
  3. Labor Rights Debate: The exploitation of migrant laborers in Gulf Cooperation Council (GCC) countries has gained international attention, with Saudi Arabia’s Vision 2030 projects serving as a focal point for reform advocates.

The HRW report underscores the duality of Mohammed bin Salman’s governance: a vision for economic transformation juxtaposed with allegations of authoritarianism, human rights abuses, and misuse of state power. As Saudi Arabia positions itself as a global player, its leadership must address these concerns to ensure sustainable development and equitable progress for its citizens.

International businesses and policymakers must carefully weigh the opportunities and risks associated with Saudi Arabia’s ambitious reforms, prioritizing transparency, accountability, and ethical governance.

References

  1. Human Rights Watch Report: “The Economic and Human Rights Implications of Saudi Arabia’s Public Investment Fund” (2024).
  2. Agence France-Presse (AFP): “Saudi Crown Prince Accused of Power Abuse” (2024).
  3. Vision 2030 Official Documents – Saudi Arabia Government (2016-2024).
  4. International Labor Organization (ILO): Guidelines on Migrant Worker Rights (2023).
  5. Reuters: “NEOM Project Developments and Controversies” (2024).
  6. The Guardian: Investigative Reports on Mohammed bin Salman’s Governance (2024).
  7. Amnesty International: Human Rights and Labor Violations in the Gulf (2024).
  8. Al Jazeera: “Challenges in Saudi Arabia’s Vision 2030 Implementation” (2024).
  9. Bloomberg: “PIF’s Role in Saudi Economic Growth” (2024).
  10. The New York Times: “Saudi Arabia’s Ambitions and Global Scrutiny” (2024).

Billal Hossain
Billal Hossainhttps://www.bidibo.xyz/
Billal Hossain, a seasoned professional with a Master's degree in Mathematics, has built a rich and varied career as a banker, economist, and anti-money laundering expert. His journey in the financial sector has seen him in leading roles, notably in AL-Rajhi Banking Inc. in the Kingdom of Saudi Arabia and as Foreign Relations and Correspondent Maintenance Officer of Bank-AL-Bilad. Beyond the confines of traditional finance, Billal has emerged as a prominent writer and commentator, contributing thought-provoking columns and theses to various newspapers and online portals. His expertise spans a wide range of important global issues, including the complexities of economics, political dynamics, the plight of migrant workers, remittances, reserves, and other interrelated aspects. Billal brings a unique analytical perspective to his writing, combining academic rigor with practical insights gained from his banking career. His articles not only demonstrate a deep understanding of complex issues but also provide readers with informed perspectives, bridging the gap between theory and real-world application. Billal Hossain's contributions stand as a testament to his commitment to unraveling the complexities of our interconnected world, providing valuable insights that contribute to a broader and more nuanced understanding of the global economic landscape.

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