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Ya, and they were diversifying into tourism which is also bust. I’m sure they’ll survive though. Their wealth is in the trillions.
by gaukes 6y ago
Ya, and they were diversifying into tourism which is also bust.
I’m sure they’ll survive though. Their wealth is in the trillions.
- ashtonkem 6y agoThe Saudi budget is a quarter of a trillion dollars. “Trillions” doesn’t last very long at those levels.
- arcticbull 6y agoSounds like at least 4-5 years.
- ashtonkem 6y ago+ increased borrowing costs as the deficits begin to worry investors.
- koolba 6y agoSaudis aren’t exactly known for their adherence to austerity.
- birdyrooster 6y agoThey will have to make due with BMW and Mercedes Benz.
- MR4D 6y agoForeign reserves are only about 1/2 trillion and dropped about 5% last month. They aren’t in the best position, and the longer this goes on, the more the downside accelerates. Once people think you’ll run out soon, you’re screwed. At these prices, SA can’t just turn oil into dollars (well, not many dollars anyway). [0] - https://www.middleeastmonitor.com/20200430-saudi-foreign-reserves-fall-to-lowest-record-in-20-years/ https://www.middleeastmonitor.com/20200430-saudi-foreign-res...
- ashtonkem 6y agoI imagine that foreign creditors will allow KSA to get much closer to 0 than they’d allow most other countries because KSA has a clearer path to repayment; bow out of the current oil production spat with Russia. But spending down 5% in one month is alarming.