King Salman bin Abdulaziz al-Saud makes his first speech as king following the death of King Abdullah in Riyadh. (AP Photo/Saudi Press Agency, File)
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
When King Salman bin Abdulaziz al-Saud became Saudi Arabia's king last month, he followed family tradition by showering his people with money.At the same time, the kingdom is trying to reduce its dependence on oil and create a more diversified, private-sector oriented economy.Economists also worry that lower oil prices will hit the government's capital spending, which could depress economic activity in the coming years.While about 600,000 Saudis have joined the private sector since 2009, more than 2m will join the workforce in the coming decade, according to Mr Sfakianakis. The government is pinning its hopes on the private sector to help accommodate them.The state, which has been behind 60 per cent of all investment over the past eight years, will still play a leading role in the economy, say bankers, potentially raising debt and dipping into reserves to sustain the expenditure on which the private sector has traditionally relied.The government will also try to increase foreign investment. About 5 per cent of the SR3tn invested over the past eight years has come from overseas, mainly into the chemicals and petrochemicals sectors.
FOLLOW THIS ARTICLE