Political relations across national borders, more often than not, hinge on economic considerations. The concept of a global economy is now gathering even more momentum than in the past, making it the stepping stone for broadening political relations. Americans have elected a billionaire for a president, while Britons have voted to quit the European Union for domestic economic gains, rather than continue to cling on to a regional economic grouping. The annual World Economic Forum gathering in Davos has become an important platform for engaging top leaders and businessmen from 70 countries. It has turned into a forum for intense debates on economic issues as well as politics, as reflected in the fierce rhetoric between the US and China. Speaking at the Forum, the Chinese President warned that nobody will emerge a winner in a trade war, especially if the US insists on pursuing a new path of protectionism. He underscored the importance of "managing globalization rather than denigrating it." Sending an important message to the countries around the world, the Chinese President said that "just blaming economic globalization for the world's problems will not help solve the problem." The US is set to adopt a new policy under its incoming president. It says it does not want a trade war with China, but wants better returns from doing business with the Asian economic giant. Where does the Kingdom stand in this scheme of things? The Kingdom is one of the top 20 economies of the world. With one fifth of the world's oil reserves, the Kingdom holds tremendous global influence. It supplies oil to several European, Asian and American countries. Energy Minister Khalid Al-Falih confirmed in Davos that the oil market is now heading towards the right direction. Oil is one of the most important resources of the Kingdom. Oil enhances the Kingdom's global position as a leading and reliable energy supplier. The commodity is an essential, basic commodity for other industrialized countries to run efficiently – which brings us back to our opening discussion, that pure economic interests are what rules global relations. Globalization being what it is, it is now imperative for the Kingdom to diversify its sources of income. This is exactly what the Saudi Vision 2030 is driving at. Recent developments, such as Saudi Aramco's first wind-operated electricity generator and the Housing Ministry's massive housing project, indicate that the Kingdom is treading the right path towards diversification. This is where its strength lies on the economic and political fronts.
