The stock market of the world’s largest oil exporter, Saudi Arabia, responded to the announcement of government measures with a sharp drop in prices. Shortly after trading began on Sunday, the stock markets fell 6.8 percent.
“All options are open. We have to cut spending in the budget.”
Saudi Arabia Finance Minister Mohammed Al-Jadaan
Saudi Arabia’s finance minister, Mohammed Al-Jadaan, had previously announced “painful” measures to fill budget holes due to the crown pandemic. He told Al Arabiya TV: “All options are open. We have to cut spending on the budget.”
The minister said his country would incur a debt of up to $ 60 billion, almost 55 billion euros, to make up for the budget deficit.
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A few days earlier, his ministry had announced that due to falling oil prices and the crown crisis, the budget was missing around € 8.1 billion. The reason for the budget deficit is also the cancellation related to the crown of pilgrimages to sacred places. International flight connections have been suspended.
The Sunni kingdom faces a record deficit of $ 112 billion this year, according to the independent Jadwa Saudi Investment Institute. In other Gulf states that rely heavily on the oil market, stock markets also fell on Sunday. In Dubai, stock markets fell 3.2 percent, in Abu Dhabi 1.6 percent.
