Khashoggi Effect or Oil Pinch? What to Look for in Saudi Budget - Bloomberg:
As Saudi Arabia’s rulers were finalizing spending plans for 2019, two unfolding dramas were pulling them in opposite directions.
The clash is focusing attention on the kingdom’s budget, due out on Tuesday. It’s an event that had already gained in significance, with the Saudis seeking to reduce reliance on oil exports. A preliminary version was released in September.
But since then, there’s been an explosion of international outrage over the Oct. 2 murder of columnist and regime critic Jamal Khashoggi by Saudi agents. That’s led some analysts to speculate that the government may seek to rally domestic support -- by taking steps to stimulate the economy. At the same time, oil prices have plunged almost 30 percent in the past three months, eating into the revenue available to finance spending.
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