The era of Mohammed bin Salman (MbS) has witnessed remarkable political and economic transformations in Saudi Arabia's contemporary history. Centralization of power structures, aggressive regional and international policies, and domestic reforms have been hallmarks of this period. These developments have profoundly impacted both domestic affairs (relations among religious institutions, the royal family, and society) and Saudi Arabia's foreign relations. Concurrently, economic policies aimed at reducing oil dependence and attracting foreign investment have sought to redefine the Kingdom's position in the global economy.
This study examines how MbS's economic and political reforms have shaped Saudi Arabia's political economy in both the short-term (2017-2024) and long-term. Utilizing the Rentier State Theory framework and a mixed-methods approach (statistical analysis of economic data and review of international reports), the research reveals that economic diversification policies have boosted foreign investment and private sector growth in the short term. However, long-term stability of these reforms is threatened by political power concentration and regional tensions.
While short-term achievements are evident, the enduring success of MbS's reforms requires structural political adjustments, reduced external tensions, and strengthened independent economic institutions. The study demonstrates through Rentier State Theory that persistent reliance on oil revenues remains a fundamental challenge for Saudi Arabia's political economy, despite diversification efforts.