“These deficits will rapidly erode the fiscal buffers that have been built over the past decade”, it said.
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Some industry observers say the cost of renewable energy in the kingdom is still high compared to electricity generated by heavily subsidised liquid fuel.
In many past situations where global oil markets have experienced a supply glut and relatively low prices, Saudi Arabia has adjusted production levels in an attempt to raise prices. In mid-August, International Monetary Fund concerns about slowing economic growth sparked a sell off of shares on the Saudi Arabian stock exchange, known as the Tadawul (TASI).
If Saudi Arabia wants a shift in oil markets, Naimi would not want to make a fresh intervention without having some certainty of success. China alone takes in around 40 percent of all the country’s exports. Since then, the ruble has devalued as the price of oil fell. The meeting, Obama noted, was occurring at a “testing time in world issues, especially in the Middle East”.
He added: “We share a concern about Yemen and the need to restore a functioning government that is inclusive and that can relieve the humanitarian situation there”. This is why there have been already talks about King Salman’s succession and steps have been taken in this regard.
“How could Saudi Arabia possibly welcome Syrian refugees while it is supporting terrorism in Syria”, he asked, deploring the policies adopted by Riyadh against Syrian people.
“I believe it will be growth-supportive – especially on the consumption side”, Monica Malik, a chief economist at Abu Dhabi Commercial Bank said at the time.
The Saudi embrace of the deal, however grudging the path in getting to this point, offered Mr. Obama a chance to begin moving past the debate over it. Just this week, he secured enough Democratic support to sustain a veto of legislation trying to block it. Senator Michael Bennet of Colorado on Friday became the 38th Democrat in the upper house to announce his support, but Senator Benjamin L. Cardin of Maryland, the ranking Democrat on the Foreign Relations Committee, came out against the deal. The removal of sanctions would allow Iran to boost oil shipments. Citing unnamed sources who reportedly extracted their information from interrogations of terrorist suspects, two Kuwaiti newspapersaccused Tehran last month of smuggling arms into Kuwait via an Iraq-based Hezbollah unit. Nothing the US agrees to, however, should violate its policy of ensuring that the “qualitative military edge” in the region lies with Israel – which also happens to support Arab efforts to contain Iran.
Saudi investment firm Jadwa said last week that by the end of July the government had withdrawn $82 billion from its reserves, reducing the contingency assets to $650 billion.
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“Saudi Arabia is to blame for the pains and sufferings of the Syrians living in the country and the plights of those who are immigrating to Europe“, Zoubi said on Monday in a televised interview cited by El-Nashra news website.
