Saudi Arabia to gradually cut energy subsidies, says Al-Jadaan

Saudi Arabia may gradually cut energy subsidies, which will take a long time to balance the budget, Bloomberg reported, citing Saudi Finance Minister Mohammed Al-Jadaan.

The Kingdom is on the right track to reduce the budget deficit to less than 10 percent of GDP this year, he said on the sidelines of the annual meeting of the International Monetary Fund (IMF) in Washington.

There will be no rush to reach a balanced budget in 2019, as the economy's reaction to fiscal policies will be reassessed, he added.

The government will accelerate its SAR 200 billion program to promote growth, he said, adding that it has committed to about SAR 40 billion so far in the field of housing and the Industrial Development Fund. Allocation of other funds will be announced before the end of this year to be spent as needed.

The program aims to reduce the impact of reforms on Saudi companies.

"We are focusing on the struggling companies that can add value to the economy and employment," he said.