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Friday, October 2, 2020

Difficult Days Await Saudi Citizens -- Middle East Monitor -- October 2, 2020

Link here. Data points:

  • so far
    • deflation, increased unemployment, expanding poverty rates, growing deficit, 
    • significant decline in general revenues, foreign exchange reserves, and public reserves
    • stagnation in the markets, paralysis in vital activities
    • expatriate workers fleeign
    • sharp decline in the profits of banks and major compaies
    • salaries being paid late
  • the worse may yet be coming 
    • increase in the cost of living
    • rise in the prices of basic commodities, including gasoline and diesel
    • the cost of water, electricity, public transport, telephone bills have magnified
    • taxes have risen, especially VAT
    • previously unknown to the kingdom, income taxes may follow
    • government may have to accelerate its privatization policy: sale of companies and vital facilities to the private sector: schools, hospitals, pharmacies
    • may need to sell all flour mills, desalination companies, electricity production, and 27 airports
  • unemployment data
    • the rate increased to 15.4% 2Q20, compared to 11.8% 1Q20
    • rise of unemployment occurred despite 2.5 million expatriate workers fleeing the kingdom since 2017
    • 1.2 million more expected to flee this year (2020)
    • major companies have stopped paying salaries
  • value of oil exports fell almost 50% in July, 2020
  • surplus in foreign trade balance fell by 65% from January 1, 2020, through July, 2020
  • the cessation of the Hajj and the Umrah will greatly impact Saudi economy

Article fails to mention that Saudi support of terrorist organizations has already fallen significantly.

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