How Saudi Arabia is Making a Loss and How it Can Fix Things

Author: John Gelmini / March, 2021

Middle East Eye ( seeks to explain the Kingdom’s dire economic position in 10 startling graphics which remains as dire as when the article was written in August 2020. It still needs to create 400,000 new jobs every year to be able to employ the 63% of the population who under the age of 30 remain unemployed but in 58% of cases have degrees.

Falling oil prices, limits to tourism, falls in car sales and rising debt all suggest that the Kingdom has to “go out” and seek new ways to bring in foreign exchange to arrest the remorseless decline in its finances.

To achieve this, the Kingdom needs to make overseas acquisitions both through its Foreign Wealth Funds and through its home-grown business.

It needs to do this at scale and with clear cultural understanding so that each acquisition pays. At present, it isn’t making enough of them and those it does make are resulting in overpayment or failure as was the case with Newcastle Football Club and its CEO, Mike Ashley.

Using Truedil M&A training delivered over the internet, the entire process can be accelerated and placed on a war footing as the situation clearly demands.

This training differs from other offerings in the Gulf in that it looks at 26 factors of Non-Financial Due Diligence including culture and the reputational risks posed by errant/toxic directors.

These allow a much better success rate for acquisitions than the present global figure of 20%.

It also reduces dips in profitability and allows for faster integration of acquired businesses with greater than the 15% success achieved normally.

Truedil training is transformative, internationally focused and intense. It enables young deal teams to effect acquisitions faster, thus:

· Bringing in much needed foreign exchange

· Broadening the Kingdom’s economic base

· Putting its graduate qualified youth to work

· Bringing the “event horizon” of Saudi Arabia’s Vision 2030 closer to practical reality