The austerity drive, which state media said would boost state coffers by 100 billion riyals ($26.6 billion), comes as the petro-state grapples with the twin blow of record low oil prices and a virus-led economic slump. The International Monetary Fund in April projected that the Saudi economy would contract by 2.3 percent this year. The world's leading crude exporter would borrow close to $60 billion this year to plug the budget deficit, he said. Also under the spotlight is a proposed £300 million ($372 million) Saudi-backed takeover of Newcastle United. Crown Prince Mohammed bin Salman's other ambitious plans to wean the economy away from oil remain vulnerable to austerity measures.

Source: Daily Nation May 11, 2020 17:26 UTC