TRANSFORMATION OF SOCIAL CONTRACT IN SAUDI ARABIA FROM RENTIERISM TO NATIONALISM

Abstract

This thesis examines the transformation of the Saudi social contract from rentierism to progressive and popular nationalism. Traditional Saudi rentier social contract was constructed based on three main pillars. The first is the royal family as a unifying authority and ruler of the Peninsula. The second is the religious establishment as the motivational factor and ideological base of the Saudi state. The last one is oil as the locomotive of the rentier social contract by providing immense wealth. This research defines the rentier social contract as a hypothetical agreement between the state and society based on the distribution of rents by the state for welfare and prosperity in the exchange for political loyalty and support of the people. Saudi rentier social contract sustained for a century. However, it is no longer sustainable for future generations. Saudi Arabia witnessed a new era of national transformation and reforms together with the rise of Muhammed bin Salman. Muhammed bin Salman has reformist and visionary political aspirations to construct a new state and society relationship, diversify the economy, and create a new social model. This thesis argues that the Saudi rentier social contract is not sustainable due to the unsustainability and instability of oil, subsidies and domestic consumption, rising population, youth unemployment, and public demand for social change. The state constructs a new state narrative based on progressive and popular nationalism. A cult of personality is constructed around the leadership of Muhammad bin Salman as the visionary face of the new era. National Vision 2030 aims to diversify the Saudi economy, modernize governmental bodies, and create a new socioeconomic model based on social responsibility and contribution rather than a rentier mentality. The Saudi rentier social contract transforms from rentierism to a progressive and popular nationalism prioritizing Saudi identity and national interests.