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King Salman on Wednesday told Saudis he recognized that his country is enduring a “painful” economic transition as it adjusts to low oil prices.
In his annual address to the Shura Council, the king acknowledged that economic restructuring and government spending cuts were affecting Saudi citizens.
The kingdom has dealt with the economic challenges in a way that does not affect its objectives, he added
“The state has sought to deal with these changes via measures some of which are temporarily painful in the short term,” he said in comments carried by the state-run news agency.
“Experience in the last three decades has proven that the kingdom has successfully overcome similar economic circumstances, leading to cutting expenditure and adopting other measures to emerge with a strong economy,” King Salman added.
In September, the government decided to cut salaries and allowances of public sector workers, as well as impose higher fees for public services and utilities.
Since the oil slump began in mid-2014, the Saudi government has spent over $200 billion from its foreign reserves, data shows. The kingdom has also cut back on project expenditures, and tapped international and local debt markets to curb its ballooning budget deficit.
Write to Reem Abdellatif at reem.a@argaam.com
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