Saudi Arabia has taken a notable position by warning G7 countries of the consequences of seizing frozen Russian assets in Western banks under the pretext of financing the Kiev regime’s war effort against Moscow. This stance, accompanied by a Saudi threat to sell its European debts, led G7 countries, particularly France, to abandon their decision to seize Russian assets, estimated at around $300 billion, and instead settle for seizing the profits generated by these assets. Consequently, the G7 countries and the European Union decided to create a financial structure to use the profits from the investments of Russian assets to raise $50 billion to finance the war effort of outgoing Ukrainian President Volodymyr Zelensky.
Some observers consider this to reflect Saudi Arabia's growing influence on the international stage, making it capable of influencing crucial international decisions. It also demonstrates the increasing influence of BRICS countries, to which Saudi Arabia has applied for membership, although it has not yet activated its membership despite the acceptance of the application. Others believe that Riyadh's position stems from the fear that this seizure could create a dangerous precedent for the seizure of other countries' assets by the G7 in the future, knowing that Saudi Arabia holds assets worth hundreds of billions of dollars in Western banks. The Saudi threat highlighted the kingdom's considerable financial influence, with net foreign exchange reserves of $445 billion and the assets of a sovereign wealth fund worth nearly $1 trillion.
Observers also noted that this decision could be due to the close relationship between the kingdom and Russia, due to their joint leadership in OPEC+1, knowing that the two countries are the largest oil exporters in the group. Relations between the two countries have strengthened since the start of Russia's special military operation in Ukraine in February 2022, notably with the kingdom’s role as a mediator between Russia and Western countries.
Riyadh believes it needs Russia's support in this matter because Russia's growing role on the world stage allows regional powers like Saudi Arabia to benefit from the contradictions between Moscow and Western capitals to strengthen its political maneuvering capacity, especially under the reign of the Democrats led by Joe Biden in the United States, who do not look favorably on the role of Saudi Crown Prince Mohammed bin Salman.
Moreover, Saudi Arabia, which is striving to restructure its economy and society in accordance with Vision 2030 to meet the economic and political challenges of the 21st century, believes it is not receiving significant support from the West, including Western financial circles that have not invested in the various projects launched by the kingdom, estimated at $1.5 trillion, including the city of Neom on the Red Sea coast, which alone is estimated to cost $500 billion. Due to the lack of investment from Western financial circles, many projects are struggling, including the city of Neom, which is not expected to reach a significant portion of its goals by 2030, with forecasts indicating that the city's population will not exceed 300,000 inhabitants, while plans project 9 million inhabitants.
This has been accompanied by reports in Western media reflecting negative forecasts regarding Vision 2030, which increasingly relies on Saudi capital to finance its projects. What exacerbates the anger of Saudi leaders towards Western capitals is their feeling that there is a preference for the United Arab Emirates, with rumors of competition between Abu Dhabi and Riyadh for a regional role in the Middle East and the Western Indian Ocean, reflected in divergent positions on several issues such as the situation in Yemen and Sudan, among others.
The Saudi stance can also be interpreted as a favor to Russia in exchange for various benefits, such as Russian investments in Vision 2030 projects, and gaining the sympathy of BRICS member countries, which could push Western capitals to reconsider their position on investing in Saudi Arabia, to prevent Riyadh from getting closer to the group, which is becoming a powerful competitor to Western influence in the world. It is noteworthy that the kingdom has not yet activated its membership in BRICS, as it cannot detach itself from the strategic relations that bind it to the United States for eight decades, guaranteeing Washington a hegemonic global role while the kingdom plays a dominant regional role. However, BRICS cannot grant Riyadh the same position due to the central role of Iran in its relations with China and Russia, which Riyadh considers an obstacle to privileged relations between it and BRICS. The Saudi threat once again illustrates the shift towards a multipolar world, where regional powers like Saudi Arabia can have a significant impact on international decisions