Kemp: Saudi Arabia Eases Austerity Just As Oil Prices Decline

22 Jun 2017   Saudi Arabia

Saudi Arabia’s decision to reverse some of last year’s austerity measures coincides with a renewed decline in oil prices and complicates the financial and economic outlook. (John Kemp is a Reuters market analyst. The views expressed are his own) LONDON, June 21 (Reuters) – Saudi Arabia’s decision to reverse some of last year’s austerity measures coincides with a renewed decline in oil prices and complicates the financial and economic outlook for the kingdom. All allowances, bonuses and financial benefits for civil servants and military personnel cancelled, amended or suspended in September 2016 have been restored and backdated by a royal decree issued by King Salman (“Saudi Arabia slashes ministers’ pay, cuts public sector bonuses”, Reuters, Sept. 26, 2016). The decision coincides with the alteration of the succession in favour of the king’s son Mohammad bin Salman and relieves the previous crown prince of all his posts. The distribution of […]

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