Saudi can face economic challenges, insists minister

The Saudi Minister of State has insisted that the kingdom is able to face the economic challenges at local and global levels despite the fall in oil prices, Anadolu reported on Monday. Essam Bin Saad, who is also a Member of the Cabinet and Acting Minister of Culture and Information, also said that the government in Riyadh is able to maintain better public fiscal space, preserve its reserves and bring down its public debt.

The Saudi Ministerial Council reiterated that the measures which have been taken recently will help the country to adapt to the current challenges and succeed in bringing down the pressures which impede the kingdom’s economic development. Meanwhile, to face the expected budget deficit, Saudi has raised $17.5 billion through its first global bonds valued by the US currency.

Saudi Arabia’s public debt was $73 billion by August. This included $63 billion of internal debt and $10 billion external. The total debt equals 5.9 per cent of the country’s GDP.

On 25 April this year, Riyadh announced its economic vision for 2030 that included decreasing its dependence on oil as the main source of income. As the largest oil exporter in the world, Saudi Arabia is suffering an acute fall in income due to the massive decline of global oil prices.