When the Saudi Arabian stock market crashed last summer, amid collapsing oil prices and fears of the contagious effects of the global economic meltdown, the authorities asserted that the kingdom was insulated from the worst effects of the crisis
The government backed its case when it announced a sharply expansionary budget in January, including plans to run its first budget deficit in seven years.
But the assertions and spending plans are having only a limited effect on investor sentiment. The Saudi stock exchange, or Tadawul, the largest in the region, continued to drop, losing 9 per cent of its value this year, and more than 50 per cent since August.
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