Economics

$50 Billion Saudi Debt Drive Reflects Rising Financial Strain

  • Government increasingly reliant on debt as oil revenues drop
  • Kingdom grapples with deficits, challenges ramping up FDI

Saudi Arabia's government acknowledges that lower oil prices and mammoth spending needs will squeeze its finances.

Photographer: Simon Dawson/Bloomberg
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Even as Wall Street heavyweights flock to Riyadh for a Davos-style conference, Saudi Arabia is grappling with low oil prices, budget deficits and challenges attracting foreign investment.

That’s forcing the kingdom to lean heavily on another source of funding: debt.