[News Figures] Who Is Saudi Powerbroker Bin Salman Crown Prince?

Crown Prince Mohammed bin Salman of Saudi Arabia. / AFP Yonhap News

[Asia Economy Reporter Kang Juhee] Crown Prince Mohammed bin Salman, the first in line to the Saudi Arabian throne, will visit South Korea on the 17th. Since becoming crown prince in 2017, bin Salman has been known as the de facto ruler of Saudi Arabia. Western media refer to him by the abbreviation 'MBS' and regard him as a highly influential figure in the international community. At the young age of 37, he is noted for implementing bold reform policies and is seen as the person who will achieve economic development and modernization in Saudi Arabia, which has long depended on oil exports.

Leading the $500 Billion 'Neom City' Project, Bin Salman's Reform Efforts

Crown Prince bin Salman is spearheading the 'Neom City' project, a new city construction initiative with a total budget of $500 billion (approximately 689 trillion KRW). This mega construction project aims to build a low-carbon smart city covering an area 44 times the size of Seoul (26,500 km²) in the desert and mountainous region of northwestern Saudi Arabia adjacent to the Red Sea. Bin Salman's visit to South Korea is largely intended to discover companies for contracts related to Neom City and to attract investment.

The Neom City project is part of the national reform initiative 'Vision 2030,' announced by the Saudi royal family in April 2016. Vision 2030 aims to break away from an economic structure that depends on 90% of national revenue from oil and natural gas exports, diversify industries, and establish a sustainable economic foundation. Although Saudi Arabia has amassed enormous wealth as the world's largest oil producer, industries other than energy exports have not significantly developed. The abundant resources have supported the country and its people for a long time, but this favorable condition has also hindered the development of other industries.

The global shift toward renewable energy as an alternative to fossil fuels such as oil also appears to be a background factor for Vision 2030. In the long term, the spread of renewable energy could lead to a decrease in oil demand, which would inevitably cause serious economic damage to Saudi Arabia, heavily dependent on oil exports. To prepare for international oil price declines due to global economic recessions and, though a distant issue, the depletion of oil resources, Saudi Arabia's move away from oil is an unavoidable choice.

Suspected 'Assassination Behind-the-Scenes,' Resolving Conflicts with 'Ally' the United States Remains a Challenge

At 37 years old this year, Crown Prince bin Salman is likely to become the youngest king in Saudi history. His father, King Salman bin Abdulaziz, the current king of Saudi Arabia, quickly reorganized the power succession structure immediately after ascending the throne in January 2015.

Historically, the Saudi throne succession in this absolute monarchy has passed among brothers, but King Salman broke this tradition by appointing his own son as crown prince. In September, bin Salman was appointed prime minister, the official head of government. He effectively oversees state affairs on behalf of the 86-year-old King Salman.

Bin Salman is regarded as a figure with a strong will for reform and openness. He has allowed women to drive and reopened cinemas that had been closed for over 35 years following the Iranian Islamic Revolution, showing efforts to eliminate Islamic fundamentalism. Recently, he has also permitted women to work as train operators and pilots, allowing a certain degree of women's social participation.

However, bin Salman faced international criticism as a suspect behind the 2018 abduction and murder of Jamal Khashoggi, a Saudi-born anti-government journalist. This incident rapidly cooled relations with longtime ally the United States. U.S. President Joe Biden, during his presidential campaign, pledged to make Saudi Arabia an 'international pariah' over this case. Meanwhile, Saudi Arabia significantly cut oil production last month ahead of the U.S. midterm elections, a move unfavorable to President Biden who hoped for oil price stability, continuing the tense standoff between the two countries.