Saudi Arabia to rein in spending next year

Saudi Arabia plans to reduce government spending next year and anticipates lower revenue, but will continue to invest heavily in economic diversification, its latest budget showed.

The finance ministry said the budget reflects its priority for “spending efficiency and fiscal sustainability.” Reforms have driven unemployment among Saudis to a record low of 7.1%, while women’s labor force participation has reached 35.4%, surpassing the official target of 30%.

Although oil prices are expected to remain well below the government’s breakeven point, GDP is projected to grow by 4.8% next year. “The Saudi economy has reached a stage where oil market volatility doesn’t impact it as much as it used to,” said Finance Minister Mohammed Al-Jadaan.