Despite his critique of the relationship, Mr Trump stopped short of calling for the U.S. government to simply walk away from the Saudis, who he said would soon find themselves as a “major target” of Islamic State terrorists. In a story published last week, The Wall Street Journal reported that crude prices are seen remaining below a barrel over the next year.
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Bourses in Saudi Arabia and Egypt fell in early trade on Tuesday after oil prices extended losses, dampening the mood across the Middle East. US oil futures fell to their lowest in more than six years as traders braced for lower refinery consumption after the US summer, while Asia’s weakening economies and high global production stoked concerns about oversupply. The repercussions are now having a detrimental effect on the Saudi economy.
According to “Saudi Arabia Oil Field Equipment Rental Market Forecast & Opportunities, 2020″, Saudi Arabian market for oil field equipment rental is projected to grow at around 11 percent through 2020. The stock had tumbled 8.3% in the previous session after tanker freight rates from the Gulf to Japan dropped to their lowest in more than 10 months. “The deal would have assisted in improving transparency and development of the local-currency capital market had it been done with a more widespread engagement of industry participants and more visibly to institutional investors”, Yadav says. It is also planning a $27bn bond issue to add to the $4bn it borrowed in July. Rising oil prices and production resulted in large external and fiscal surpluses and strong government spending led to robust private sector activity.
Callen added: “The decline in oil prices has emphasised the importance of economic diversification”.
Meanwhile, oil prices continue to fall.
However, with the population used to an array of benefits such as tax-free income and military spending on an upward curve, it may prove hard. Further debt issuance should also increase secondary market liquidity and strengthen the transmission of monetary policy.
Saudi Arabia executed Monday three Sri Lankans found guilty of robbing and murdering a Saudi national, Omar Yeslam Saeed, on May 11, 2007, the Sri Lankan Foreign Ministry said in a statement.
For now, the country has ample foreign reserves to keep playing the game, but not indefinitely.
The country’s export revenues from January to May 2015 fell to $52 billion from $60 billion over the same period in 2014, draining government cash reserves.
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Directors noted the continued progress that Saudi Arabia is making in improving the quality and availability of key economic statistics and welcomed the authorities’ plan to subscribe to SDDS in 2016.
