Saudi Arabia to diversify economy away from oil: King Salman

[BLACKEAGLE]

Saudi Arabia to diversify economy away from oil: King Salman
Saudi King Salman on Wednesday said he has ordered economic reforms to diversify sources of income and reduce high dependence on oil following a sharp drop in crude prices.

• Posted 24 Dec 2015 00:32
• Updated 24 Dec 2015 00:34

• PHOTOS

King Salman has ordered economic reforms to diversify sources of income and reduce high dependence on oil. (AFP Photo)

• 
  RIYADH: Saudi King Salman on Wednesday (Dec 23) said he has ordered economic reforms to diversify sources of income and reduce high dependence on oil following a sharp drop in crude prices.
  
  "Our vision for economic reform is to increase the efficiency of public spending, utilise economic resources and boost returns from state investment," he said in an address to the Shura Council.
  
  "I have directed the Council of Economic and Development Affairs to devise the necessary plans, policies and programmes to achieve that," he told the consultative body, without elaborating.
  
  Oil income accounts for more than 90 per cent of public revenues in Saudi Arabia. The world's largest oil exporter, Saudi Arabia is facing an unprecedented budget crunch as the price of oil has dropped by more than 60 per cent since mid-2014.
  
  At midday on Wednesday, benchmark Brent North Sea crude for delivery in February stood at US$36.50 a barrel, hovering just above an 11-year low.
  
  The king said Saudi Arabia carried out a large number of mega infrastructure projects and boosted its fiscal reserves in the past several years when oil prices were high.
  
  The size of the fiscal buffers has enabled the kingdom to overcome the consequences from the sharp decline in oil revenues, said the king, adding that development projects have not been affected by the drop.
  
  Saudi Arabia is projected to post a record budget deficit of around US$130 billion for this year, the International Monetary Fund says.
  
  The IMF has advised Riyadh to implement reforms, including expanding non-oil revenues, warning that failure to do so would deplete its foreign reserves.
  
  The kingdom, which has been pumping around 10.4 million barrels a day, has withdrawn funds from its foreign reserves and also issued bonds to finance the budget deficit.
  
  At the end of October, its reserves fell to US$644 billion from US$732 billion at the end of last year. The finance ministry has issued bonds worth US$20 billion for the domestic market.
  
  In 2014, Saudi Arabia posted a budget deficit of US$17.5 billion, only its second since 2002.
  
  - AFP/de
  Saudi Arabia to diversify economy away from oil: King Salman - Channel NewsAsia

 

[Alithemoor1]

And once the oil price go up, these projects will be shelved again.

 

[HAIDER]

Saudis have small population, they can live on income from two holy city. They already commercializing hajj and umra. Open hotels, restaurants etc etc....
Imagine a student came from Saudi arabia him and wife live in 6000 dollar penthouse . His tuition is fully paid. Its just one example.....many of them are coming US and Canada on fully paid expense.

 

[KTOOOOM]

And once the oil price go up, these projects will be shelved again.

will i hope not.
we can maintain the same expenditure for 170 years.but if the oil price go up economic reform will be slow.
i hope it get even lower.

 

[GoldenRatio1618]

for Saudia they should invest in their own country as well as other Muslim countries because lots of opportunities and concession for them but they are not availing these opportunities just keeping their trillians dollars reserverves in USA, UK, France, and in swiss banks.

 

[Al-Taïr]

Too little too late.. but again, what do u except from that incompetant family..

 

[Jai Bharat]

will i hope not.
we can maintain the same expenditure for 170 years.but if the oil price go up economic reform will be slow.
i hope it get even lower.

How can this be? Foreign reserves dropped $90 billion in a year, and can only continue on current depletion rate for another 5 years.

 

[HAIDER]

How can this be? Foreign reserves dropped $90 billion in a year, and can only continue on current depletion rate for another 5 years.

Did not understand can you explain using some math equation. Thanks

 

[Jai Bharat]

Did not understand can you explain using some math equation. Thanks

From the article:

At the end of October, its reserves fell to US$644 billion from US$732 billion at the end of last year.

And according to the IMF:
Saudi Arabia could be bankrupt within five years, IMF predicts | Middle East | News | The Independent


I fail to see how the Saudis can maintain expenditures for '170 years' as was claimed.

 

[KTOOOOM]

From the article:



And according to the IMF:
Saudi Arabia could be bankrupt within five years, IMF predicts | Middle East | News | The Independent


I fail to see how the Saudis can maintain expenditures for '170 years' as was claimed.

lol
read more then come back.

 

[ArsalanKhan21]

The corrupt and incompetent Saudi family currently ruling Arabia has ruined and looted the economy of the country. Their obsession with Wahhabi ideology has created tension within Islam. They have accumulated billions of dollars in the foreign bank accounts and now have nearly bankrupted Arabia by dropping the price of oil to $35 a barrel.

 

[Jai Bharat]

lol
read more then come back.

I've read plenty:

Does this look healthy and sustainable to you?

 

[HAIDER]

I've read plenty:

View attachment 281765

Does this look healthy and sustainable to you?

abay kis kaam pa laga diaa gareeb koo.....

 

[KTOOOOM]

I've read plenty:



Does this look healthy and sustainable to you?

apparently not .can you validate this with your link

 

[KediKesenFare3]

apparently not .can you validate this with your link

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