MIDEAST STOCKS-Saudi shares fall but ends off lows as budget introduces austerity | Reuters:
"Saudi Arabia's stock index fell but closed well off its lows on Tuesday after the 2016 state budget introduced spending cuts, rises in fuel, natural gas feedstock and electricity prices, and tax hikes. Other markets in the region were mixed.
Analysts welcomed the budget as showing the government's willingness to adopt difficult reforms to address a huge deficit caused by low oil prices. As such, it could help to sustain confidence in the riyal's peg to the U.S. dollar.
"It is a step in the right direction, as these steps will not bring the budget into balance again but do help to improve the fiscal sustainability of the country and its ability to withstand low oil prices now and in the future," said Jaap Meijer, managing director for equity research at Arqaam Capital in Dubai."
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