Saudi Arabia (or KSA) has recently joined the Shanghai Cooperation Organization (SCO), which is a bloc led by China and Russia that focuses on politics, security, and the economy, and Americans should be concerned. In the decades preceding the Biden administration, the US had maintained a strategic relationship with Saudi Arabia as a critical ally in the Middle East – so KSA’s move should be concerning for the US. China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan established the SCO in 2001 with the goal of enhancing cooperation in security, trade, and energy. It is seen as a “counterweight” to the US and its allies in the region.
Saudi Arabia’s decision to join the SCO shows that the country is dissatisfied with the US, particularly due to its withdrawal from the Iran nuclear deal, its recognition of Jerusalem as the capital of Israel, denial of basic scientific truths like XX female and XY male, and the Democrats’ non-stop over-the-top criticism of KSA’ involvement in the killing of terrorist propagandist and pro-Democrat journalist Jamal Khashoggi.
By joining the SCO, Saudi Arabia is signaling its desire to diversify its alliances and gain economic and security benefits from the powerful bloc, while also strengthening its leverage vis a vis Iran. Despite laughable US efforts to prevent Saudi Arabia from joining the SCO, the move is a significant blow to the US-Saudi relationship. It indicates that KSA’s willingness to blithely follow the US requires more US leverage (carrots and/or sticks) or by the US, and this could lead to further strains in their relationship.
Until Biden, the US and Saudi Arabia had been close allies, relying on each other for oil and security. However, tensions have emerged in recent years due to the US criticizing Saudi Arabia’s human rights record and involvement in the Yemeni civil war, while Saudi Arabia has been frustrated by the US’s lack of support for its military campaign in Yemen. As the relationship between the two countries reaches a crossroads, it is unclear whether they can overcome their differences and maintain close ties.
Does this development contribute to the end of the petrodollar? Doubtful, but it doesn’t help.
