Spending in Sights as Saudi Set to Unveil Budget Amid Oil Slump - Bloomberg Business:
"Its reserves sapped by more than a year of cheap oil, Saudi Arabia is expected to cut spending when it unveils its budget this month, while steering clear of the more painful reforms some economists argue are needed to ensure long-term financial stability.
The 2016 plan will be the first under King Salman and an economic council dominated by his increasingly powerful son. It follows a year in which a collapse in oil prices pushed the world’s largest crude exporter to spend down reserves and issue bonds for the first time since 2007.
Next year “is going to be a tough year for Saudi,” John Sfakianakis, a Riyadh-based Middle East director at Ashmore Group Plc, said by phone. If the budget “doesn’t create a buzz and confidence,” business sentiment could soon turn negative, he said.
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