In its latest update on the Saudi economy, investment bank Jadwa says that financing the country’s projected SR326bn ($87bn) 2016 budget deficit in 2016 “is straightforward in the short-term, as it can be done by drawing down the stock of foreign assets built up in recent years and by the financial capacity to issue debt.”
Jadwa points out that with foreign reserves assets of $612bn held by SAMA at end-2015 (see chart), and the kingdom’s ability for sovereign bond issuance (around SR20bn per month since June 2015), the government has more room to continue financing strategic projects, such as key infrastructure developments, as well as to support the private sector where necessary. (CONTINUED - 487 WORDS)
