Markets rise on Saudi succession move

The naming of Mohammed bin Salman as the crown prince of Saudi Arabia triggered a rally on the country’s stock exchange.

The 31-year-old gained 31 out of 34 votes from the country’s Allegiance Council, suggesting strong support among the royal family. His father, King Salman, is 81.

Hasnain Malik of Exotix Partners said the decision was “perhaps not surprising given [Mohammed]’s unprecedented concentration of power since January 2015”, which has already given him “effective control of oil, economic and foreign policy”.

Mohammed, who was previously deputy crown prince, replaces Mohammed bin Nayef, 57.

Although the clarifying of Saudi Arabia’s succession arrangements is encouraging, the country faces several risks, warns Malik.

These include the unpredictable nature of US foreign policy in the region, the challenge of diversifying the Saudi economy away from a reliance on oil and a risk of social unrest among a young population with relatively high unemployment.

©2017 funds global mena

Related Articles