Saudi Arabia Should Spend Like the Debtor It Is
The kingdom isn’t what it used to be, but doesn’t know it yet. Look at recent investments.
There must be better uses of money. Well, maybe.
Photographer: Marc Atkins/Getty Images
There’s a certain devil-may-care glamour about going on a shopping spree when you’re already living beyond your means. It’s probably not the best way to convince your creditors to keep putting up the cash, however.
Saudi Arabia might want to reflect on that after its recent splurge on oil companies, cruise ships and soccer. In the past month, the kingdom’s sovereign wealth fund has bought or been linked to plans to buy an 8.2% stake in cruise operator Carnival Corp.; about 80% of Newcastle United Football Club; and holdings in Royal Dutch Shell Plc, Total SA, Eni SpA and Equinor ASA.