Saudi Capital Spending to Drop 71% in 2016 Amid Cheaper Oil
- Capital spending to reach 75.8 billion riyals vs 263.7 billion
- Saudi budget deficit to drop to 13.5% of GDP vs 15% in 2015
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Saudi Arabia’s austerity measures will slash capital spending this year by 71 percent, as the world’s biggest exporter of crude seeks to repair public finances damaged by low oil prices.
Capital expenditure is projected to fall to 75.8 billion riyals ($20.6 billion) this year compared with 263.7 billion in 2015, according to the government’s bond prospectus obtained by Bloomberg. In 2014, capital spending amounted to 370 billion riyals.