Gen. David Petraeus, the retired four-star Army general and former head of the CIA, told CNBC on Thursday that Saudi Arabia is “gradually running out of money.”
Petraeus said the Saudi’s need their initial public offering (IPO) of the state-run oil company Aramco, to be successful. In December, the Saudis plan on releasing some shares of Aramco to the public in an effort to attract outside investors.
The IPO is part of Crown Prince Mohammad bin Salman’s “Vision 2030,” his effort to diversify Saudi Arabia’s economy and reduce its dependence on oil exports. Petraeus said Saudi Arabia’s budget deficits can be “anywhere from $40 to $60 billion” each year, depending on the price of oil.
When asked about other people’s criticisms of the crown prince, Petraeus said it was in the entire world’s interest to see “Saudi Arabia succeed” and to also see it “moderate” some of its practices.
Petraeus brought up the murder of journalist Jamal Khashoggi: “Certainly there have been some setbacks and missteps — some of them truly grievous, the horrific murder of Khashoggi being foremost among those.” Petraeus added, “at the end of the day, we all want to Saudi Arabia to succeed.”
Neither Petraeus nor the interviewer brought up Saudi Arabia’s war in Yemen, which could account for some of the Kingdom’s financial troubles. In 2018, Saudi Arabia ranked third in the world in military spending, behind only China and the US.
The war in Yemen will enter its fifth year in 2020, and the death toll has just reached over 100,000. This death toll only accounts for those killed by violence, not those who have died from starvation or diseases like cholera. A report released by the UN earlier this year says if the war ends in 2019, it will account for 233,000 deaths, 60 percent of those deaths being children under five.
Petraeus is currently the chair of the KKR Global Institute, a branch of the American global investment firm KKR. Petraeus said there is no KKR investment into Saudi Arabia he is aware of yet, and that the Saudis need to “regain the confidence of all the investors of the world.” But Petraeus did say KKR has invested elsewhere in the region and put $2 billion into the United Arab Emirates’ Abu Dhabi National Oil Company.
Of course they are running out of money. Why else would the KSA be floating IPO’s?
The KSA does not have a long term future. Long before the oil is gone, the country’s profitability will collapse, assuming a nuclear war with Iran doesn’t happen first.
My Father in law used to say “nobody ever sold a company because it made too much money”. What are those investors buying? A tiny sliver of a company with bad corporate governance in a country with a terrible legal system. I wouldn’t touch it with a 10 ft pole.
you must have meant to say “a nuclear war against iran…”, seeing as how iran has repeatedly stated that they have no desire to acquire nuclear arms, and are not likely to ever do so.
Petraeus brought up the murder of journalist Jamal Khashoggi, “certainly there have been some setbacks and missteps — some of them truly grievous, the horrific murder of Khashoggi being foremost among those.” Petraeus added, “at the end of the day, we all want to Saudi Arabia to succeed.”
Comments from a war criminal and traitor.
Why do I have a feeling that the Kingdom is slipping away, so all nicety nice. Because until it becomes clear that somebody is capable of getting away, we treat them as dirt. Witness kid glove treatment of Turkey.
It looks like Saudis are bailing out oof the leading role in Iran theatre.
Saudi Arabia needs to sell off part of its oil empire – ergo, its recent need to ingratiate itself to Israel and the USA by being hostile to Iran. Saudi Arabia will need the financial talents of Wall Street to handle the IPO.
I see that as cashing out, prior to running to their stash of money to enjoy the fruits of all their past crimes. To sell the future income stream, for what you can get at a discount today, is what is done before a planned run.
We just will not talk about Yemen, wink, wink, where saudis with obscene assistance from the us, are bombing daily, killing civilians by the thousands, and completely destroying the country.
Israeli pilots, as mercenaries, are very active in Yemen, killing civilians, their speciality.
In a sane world Petraeus would be locked up and Snowden, Manning and Assange would be honored in a parade.
How painfully true. This guy should have bern in jail.
Maybe Petraeus, certainly Cheney.
Anybody still listening to this man?
Unfortunately, yes. I’d guess a whole bunch of people. America loves its generals.
armchair generals, indeed, all of them. which war did they won since WW2? Korea, Vietnam, Iraq, Syria? those “honorable” soldiers slaughtered, as trophy, some 10 million people in the last 70 years. but, last but not least, I must take off my hat to them for the “glorious” victories of Granada & Panama.
The day this is true, the Princes of Saud will run to Europe to hide near their money, and Saudi Arabia will be swept away. It will become a Sunni version of Iran, more like ISIS and the fever dreams of bin Laden, much worse than the Iran of today. It may be coming. If Petraeus is correct, it is coming near.
trade 4 billion years old ressources of our mother Earth against counterfeit , printed, paper is the most staggering historical event, ever!
So Petraeus is a chair? A piece of furniture? Or did you mean to write chairman but you were frightened by feminists declaring the word “sexist,” for including -man about a man?
Let us look at actual Saudi oil production, and add in that oil production there is in Partnership, joint ownership with Kuwait Royaly.
The joint plots are the richest fields in ME but not is all rosy as to volumes left in ground.
Over pumping in past has stripped original domes out faster than surrounding areas can refill the domes leaving fully 1/3 to 1/2 offering wells having to inject water in order to get remaing, 5-7 barrels of water pumped in and out to retrieve 1 barrel of oil, more on order of actual stripper wells like those you see metal arms throughout US left slowly going up and down for the very same reason, pumped dry too fast.
Kuwait, and therefore.Saudis as well, do slant drill and retrieve Iraq’s oil; now why steal Iraq oil if your wells are so profitable?
Oh there are still huge oil deposits but in past Saudis hired, Japan was.mansging Kuwait_ Saudi fields when Saddam invaded, foreign experts and those experts just pumped at levels demanded of them.
Just doing what they were paid to do.
Royals will only handle money, not actually have own family’s get hands dirty in actual oil fields.
One reason Said is going solar and natural gas is inefficient well take more power yo produce a barrel, remember 5-6 and even more barrels of water per polluted barrel of oil.
In Caspian and Persian sea there is what most experts agree the largest natural gas field on earth; a gas field owned by Quatar and Iran.
The value of that gas is multiples over Saudi Kuwait oils.
Qatar refused to drasticly up gasmproduction in order yo aid Saudis newest Liquification and particulate seperation for export facilitys.
Hint, note recent bad Blood by Saudis and Qatar, causing Turkey and Iran to come to Qatars.need for foods etc.
US does not need Saudi oil as it is now worlds largest oil and gas exporting nation.
Europe is fast going to natural,gas and alternative means for its future need, an estimated 10% per year increase for next 20 years
Gas pipelines to Turkey proper and export terminals are already under construction and yes are indeed part of China led Silk Road Project..
Some of Royal Saudis and Kuwiti have been drawing down their overseas.bank and investment funding for last 7 years.
Kuwait is still in debt to Euros andnJapan for when yheir fields needed rebuilding after Gulf War I.
Money gave Saudis their only real power, and.they bribed and invested in all Euro and US has joint partners and bribed the heck out of any who opposed them and US.
Saudis Royals have been recieving kickbacks through off shore and Euro natoons from armament industrials and even help fund US war on Drugs in Americas and overthrow regimes with US_/Israel and Euro ntelligence services.
Saudis have competition in stealing Yemen as the UAE.members now control more lands securely than do Saudis
Saudi Royals, ones left are grasping at straws, joining ME Trading Block with Israel. Jordan andnEgypt and have already signed agreements with Israeli military to use Saudi Air strips for mutual Defense against Iran.
Lots behind the scenes financial interest finding not much in ways of profit growth, Saudi military is only money making boom, not there in Saudi energy , and spending more time with UAE and Qatar for future gas extraction.
France is about only Euro nation still trying to gain access to oil,even Norway is selling oil fields, and France now allied with US in stealing African oil and minerals.
France saw their Greater Cross Sahara oil pipelines doomed until They helped destroy Long as old rlers.
this sounds like a warning “don’t mess with this arrangement we have with you, no matter the costs because it will cost you much more if you attempt to leave”