In 1960, UK Prime Minister MacMillan, while in Africa, delivered his famous, “winds of change,” speech.
It relates to the scourge of apartheid, but also to the wider attitudes towards colonialism and the independence of African nations.
Now those “winds of change,” are also blowing in the Middle East.
The old status quo, is changing as well, new challenges, and demands.
Iran, Saudi Arabia, Lebanon, Yemen, Palestine, ISIS, defeated but still lethal.
There have been seismic attitudinal changes in the Kingdom of Saudi Arabia, particularly following the new policies of the Saudi Crown Prince, both small, but seminal, (allowing women to drive, allowing the full range of movies to be screened to all audiences).
But also the enormous.
Tackling widespread corruption, detaining a number of the elite, including members of the royalty detained in the Ritz Carlton, clawing back debts, investigating claims of ghost companies, allegedly siphoning off oil supplies, and the probability that the giant oil producer, Aramco, might soon be listed on the international stock market.
Introducing, a VAT, at five per cent, one of the lowest in the world, with a Safety Net subsidy, for the poor.
Pragmatic wisdom.
And the reverberations, like a tsunami wave, will strike on many distant shores.
The Financial Times advised that the Crown Prince has also announced policies, allegedly to reduce previous profligate spending in other countries, to spend at home, helping to diversify the economy, move the country away from over-dependence, on its income from oil.
Hopefully, contracts will soon be let for exploitation of Bahrain’s oil deposits, following the release of the Exploration Report late last year.
Particularly important, the possibility, if Aramco is fully listed, that the special oil sharing arrangement between Saudi Arabia and Bahrain, may come under review.
Another adjunct effect of the tsunami, is that the UAE “appears” to have adopted a de facto “Strata Title”process.
No governments want the damaging investment publicity, that accompanies failed residential and commercial developments.
Allegedly, no more “off the plan purchases;” they will be banned, presumedly avoiding speculation in new projects, until the initial development is completed.
In future, building developers will need to make payments into a supervised Trust Fund, and when the building is completed, the government and developer, will offer residents, visas.
The development company will manage the building, and collect requisite fees.
A government department, will “supervise” the development company.
It appears any resale policy, is yet to be defined.
Presumably too, a clause in any contract with the developer, if failing to complete the proposed building, following a reasonable time limit, the building will be reclaimed, demolished, land reverting back to authorities.
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