Saturday, 24 October 2020

Why #SaudiArabia's dependence on Aramco billions is 'unsustainable' - Arabianbusiness

Why Saudi Arabia's dependence on Aramco billions is 'unsustainable' - Arabianbusiness

Saudi Arabia's dependence on dividends paid by state-controlled oil giant Aramco to delay spending cuts is not sustainable and the kingdom may face challenges to keep its debt/GDP ratio under control, according to a leading analyst.

Eirini Tsekeridou, fixed income research analyst at Julius Baer, told Arabian Business that Saudi Arabia will only be able to deliver a balanced budget in 2023 as the economy struggles with the impact of coronavirus.

Saudi Arabia has recently published its 2021 pre-budget statement with the final version to be released in December.

In it, Saudi Arabia expects a budget deficit in 2020 close to 12 percent, declining to 5.1 percent of GDP in 2021, and be balanced only by 2023.

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