Reassessing Rentier State Theory

Abstract

This thesis critically evaluates the relevance and limitations of Rentier State Theory (RST) in explaining the Gulf states’ social, political, and economic structures, with a particular focus on Saudi Arabia. The study challenges two key assumptions of RST: first, that there is an intrinsic link between oil wealth and the development of authoritarian governance, and, second, that economic prosperity and diversification are impossible without a transition to democracy. These assumptions, influenced by the theory’s Eurocentric bias, overlook important factors. Specifically, RST fails to account for the historical, social, and political contexts that shaped the Gulf states, particularly the role of tribal systems before the formation of modern nationstates. Furthermore, RST alone does not adequately explain the contemporary transformations in Gulf monarchies and requires the integration of additional theoretical frameworks to provide a deeper analysis. To address these gaps, this study examines the historical socio-political structures of Saudi Arabia to highlight the enduring influence of tribal governance on the country’s modern political system. It also investigates how incorporating good governance principles – such as accountability, transparency, and the rule of law – under Vision 2030 offers a more comprehensive appreciation of the recent social, political, and economic changes in the Kingdom. The findings suggest that while RST offers valuable insights, it must be adapted to include local contexts and complementary theoretical perspectives. This research contributes to a broader understanding of how Gulf monarchies, especially Saudi Arabia, have managed to achieve significant economic progress and maintain political stability through governance models that are tailored to their unique historical, social, and political realities. The study underscores the need to reconsider the application of Western theories in non-Western contexts and advocates for a more context-sensitive approach to political and economic analysis.