Saudi Arabia has been making great efforts in order to cope with an unprecedented budget deficit, caused by strongly curled proceeds from the sale of oil - by AMarkets materials.
Saudi Arabia canceled the social and infrastructure projects worth $ 20 billion out of a total project budget of $ 69 billion. The ministerial budgets are reduced by a quarter.
The deficit ballooned to 16% of GDP in 2015. The fall in GDP in 2017, according to IMF forecasts, will be about 10%. The flagship index Tadawul All Share Index UK shares fell by 17% over the past 12 months. The authorities are preparing a big Arabia "shake-shuffling" in order to give the economy a new breath of life and attract foreign capital. On the agenda - the sale of shares in oil giant Aramco and the creation of the world's largest sovereign investment fund. Saudi Arabia must urgently do something.
If some effective innovative solution will not be found - the country will be left without funds in 3-4 years. Now the Kingdom is actually survives due to the accumulated savings. Of earned $ 700 billion by the end of 2014 (for a number of successful "bullish" years in the oil market) economy spends roughly $ 150 billion a year.