The New York Times reports: He has slashed the state budget, frozen government contracts and reduced the pay of civil employees, all part of drastic austerity measures as the Kingdom of Saudi Arabia is buffeted by low oil prices.

But last year, Mohammed bin Salman, Saudi Arabia’s deputy crown prince, saw a yacht he couldn’t resist.

While vacationing in the south of France, Prince bin Salman spotted a 440-foot yacht floating off the coast. He dispatched an aide to buy the ship, the Serene, which was owned by Yuri Shefler, a Russian vodka tycoon. The deal was done within hours, at a price of approximately 500 million euros (roughly $550 million today), according to an associate of Mr. Shefler and a Saudi close to the royal family. The Russian moved off the yacht the same day.

It is the paradox of the brash, 31-year-old Prince bin Salman: a man who is trying to overturn tradition, reinvent the economy and consolidate power — while holding tight to his royal privilege. In less than two years, he has emerged as the most dynamic royal in the Arab world’s wealthiest nation, setting up a potential rivalry for the throne.

He has a hand in nearly all elements of Saudi policy — from a war in Yemen that has cost the kingdom billions of dollars and led to international criticism over civilian deaths, to a push domestically to restrain Saudi Arabia’s free-spending habits and to break its “addiction” to oil. He has begun to loosen social restrictions that grate on young people.

The rise of Prince bin Salman has shattered decades of tradition in the royal family, where respect for seniority and power-sharing among branches are time-honored traditions. Never before in Saudi history has so much power been wielded by the deputy crown prince, who is second in line to the throne. That centralization of authority has angered many of his relatives. [Continue reading…]