As Saudi Arabia prepares to meet investors Wednesday with a view to selling its first international bonds, the country has disclosed little-known information about its economy. Here are four statistics that catch the eye.
1) Oil Income Plunged About 70% in 5 Years
Saudi Arabia relies on oil for three-quarters of its income. Crude revenue has slumped 68 percent since 2011 to 334 billion riyals ($89 billion) this year amid a supply glut
2) Spending Cuts
The kingdom slashed capital expenditure by more than 70 percent this year to 75.8 billion riyals. Current spending, including salaries and government services, is forecast to decline 19 percent.
3) Government Debt is Rising Fast
Saudi Arabia has been selling domestic bonds for over a year to fund the largest budget shortfall among the world’s 20 biggest economies. Debt has ballooned more than six times since the end of 2014 to 273.8 billion riyals as of the end of August, according to the prospectus
4) PIF Will Cut Back on Lending
Since it was created in 1971, the Public Investment Fund has focused on lending to development projects in the country. Outstanding loans by the PIF, as the fund is known, rose to 104 billion riyals at the end of 2015, from 57 billion riyals at the end of 2011, according to the prospectus. In the future, the PIF “will not act as a source of lending to the same extent that it has historically,” according to the document.
