Week In Review

Saudi economy is going down the drain

Ramadan 04, 14412020-04-27

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Saudi investments outside of the energy sector are in shambles, a conclusion reached by a detailed analysis conducted by the Middle East Eye (MEE).

Most financial investments of the Saudi regime are currently declining due to the unprecedent blow delivered to the global economy.

The following data on the overall health of the Saudi economy by MEE analysis are important indicators to keep in mind;

• On 23 January 2015, foreign reserves totaled $732bn. In December last year they had depleted to $499bn, a loss of $233bn in four years, according to the Saudi Arabian Monetary Authority (SAMA).
• Sovereign funds are pooled by nation, UAE comes first with funds worth $1.213 trillion then Kuwait with $522bn, Qatar with the $328bn and Saudi PIF with $320bn.
• PIF paid almost $49 a share for a stake in Uber Technologies Inc. in 2017. Uber shares have dived since. It sold almost of all its $2bn stake in Tesla toward the end of 2019, just before Tesla stock went through the roof, with an 80 percent rally this year.
• The kingdom is spending one percent of GDP on supporting its economy during the lockdown, while Qatar is spending 5.5 percent, Bahrain 3.9, UAE 1.8.
• PIF splashed another $1bn on stakes in four European oil companies and the Carnival cruise liner - all of which casts doubt on the strategy of PIF to diversify away from oil.

Courtesy: Middle East Eye

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