This post is part of an AGSIW series on Saudi Vision 2030, a sweeping set of programs and reforms adopted by the Saudi government to be implemented by 2030.
There are simultaneous efforts by Qatar and Saudi Arabia to attract investors for new bond issues this week. The “bond-off,” or race to sale, is yet a new example of the use of economic means to achieve political ends. The problem is that the side effects of competitive bond issues, just like escalating tariffs, can have unintended consequences on friends and allies. The hypercompetitive use of geoeconomic strategies can be counterproductive to growth. Two examples in trade and finance illustrate this point.