They can buy all the tech they want – as long as business remains as tightly controlled as it is now in Saudi Arabia, there is not going to be a real entrepreneurial class emerging. And what makes America tick is not tech, its individuals willing and ready to go and cut a piece of the pie. No matter the sweat and tears. Are you ready for that Saudi Arabia?
The prospect of Saudi Arabia backing Tesla provides a glimpse into the kingdom’s oil and economic strategy, and it’s not as simple as a hedge against crude’s long-term decline. Why it matters: Saudi Arabia is OPEC’s dominant producer and holds massive reserves, but the kingdom wants to diversify its economy away from crude oil at a time when some analysts see a global demand peak beginning to appear over the long-term horizon.