| View previous topic :: View next topic |
| Author |
Message |
spanglish
Joined: 21 May 2009
Posts: 742
Location: working on that
|
 Posted: Thu Oct 13, 2016 1:11 am Post subject: A Rare Glimpse Behind Saudi Arabia's Deteriorating Finances |
 |
|
Some fantastic context to the squeeze everybody is feeling.
As Saudi Arabia prepares to meet investors Wednesday with a view to selling its first international bonds, the country has disclosed little-known information about its economy. Here are four statistics that catch the eye.
1) Oil Income Plunged About 70% in 5 Years
Saudi Arabia relies on oil for three-quarters of its income. Crude revenue has slumped 68 percent since 2011 to 334 billion riyals ($89 billion) this year amid a supply glut.
The slide in prices accelerated after OPEC adopted a Saudi-led strategy in 2014 to allow members to pump as much as they wanted to protect the group’s market share and drive higher-cost producers out of business. As oil swamped the market, prices fell to a 2003 low of about $28 a barrel in January.
The Organization of the Petroleum Exporting Countries agreed last month to cut output to support crude, which traded over $50 a barrel this month.
2) Spending Cuts
The kingdom slashed capital expenditure by more than 70 percent this year to 75.8 billion riyals. Current spending, including salaries and government services, is forecast to decline 19 percent.
(continued)
http://www.bloomberg.com/news/articles/2016-10-11/four-highlights-from-saudi-arabia-s-220-page-bond-prospectus |
|
| Back to top |
|
 |
Balzac
Joined: 14 Jun 2007
Posts: 266
|
| Posted: Thu Oct 13, 2016 4:31 am Post subject: Re: A Rare Glimpse Behind Saudi Arabia's Deteriorating Finan |
|
|
| spanglish wrote: |
Some fantastic context to the squeeze everybody is feeling.
As Saudi Arabia prepares to meet investors Wednesday with a view to selling its first international bonds, the country has disclosed little-known information about its economy. Here are four statistics that catch the eye.
1) Oil Income Plunged About 70% in 5 Years
Saudi Arabia relies on oil for three-quarters of its income. Crude revenue has slumped 68 percent since 2011 to 334 billion riyals ($89 billion) this year amid a supply glut.
The slide in prices accelerated after OPEC adopted a Saudi-led strategy in 2014 to allow members to pump as much as they wanted to protect the group’s market share and drive higher-cost producers out of business. As oil swamped the market, prices fell to a 2003 low of about $28 a barrel in January.
The Organization of the Petroleum Exporting Countries agreed last month to cut output to support crude, which traded over $50 a barrel this month.
2) Spending Cuts
The kingdom slashed capital expenditure by more than 70 percent this year to 75.8 billion riyals. Current spending, including salaries and government services, is forecast to decline 19 percent.
(continued)
http://www.bloomberg.com/news/articles/2016-10-11/four-highlights-from-saudi-arabia-s-220-page-bond-prospectus |
Yeah read it. It makes for interesting reading. You do wonder what the Saudi strategy is when trying to bankrupt shale oil suppliers and blitzing the hell out of Yemen. It's also pretty obvious that with respect to Russia, their strategy has not worked as their economy is still quite vibrant and their oil market share has in fact increased as they have more contracts with China than Saudi.
You can't help wondering who's in charge of the country. On paper it's Salman junior, but some would say it's not a particularly wise strategy being adopted as the Saudis are increasingly getting heat from all sides especially as they can now be sued by families of 9/11 victims. The ARAMCO IPO will certainly bring in some much needed revenue but many investors will be put off by the lack of transparency.
Time will tell.
B |
|
| Back to top |
|
|
scot47
Joined: 10 Jan 2003
Posts: 15343
|
| Posted: Thu Oct 13, 2016 9:36 am Post subject: |
|
|
| The mysteries of how decisions are reached within the Family of al-Saud ! Outsiders will never get to know that. The Golden Times are over. Pack your bags and accept the the Caravan is moving on. Only the desperate will think of Al-Saudiya now ! |
|
| Back to top |
|
|
Amerrycan Muslim
Joined: 01 Jul 2014
Posts: 51
Location: KSA
|
| Posted: Thu Oct 13, 2016 12:24 pm Post subject: |
|
|
| scot47 wrote: |
| The mysteries of how decisions are reached within the Family of al-Saud ! Outsiders will never get to know that. The Golden Times are over. Pack your bags and accept the the Caravan is moving on. Only the desperate will think of Al-Saudiya now ! |
Shaykh Scot, while I hate to disagree with you, there are still plenty of excellent financial opportunities available in KSA... Maybe not like in your heyday, but still better than almost anywhere else in world (currently). |
|
| Back to top |
|
|
I-forgot
Joined: 28 Jun 2015
Posts: 153
Location: Riyadh
|
| Posted: Fri Oct 14, 2016 8:15 am Post subject: |
|
|
| Amerrycan Muslim wrote: |
| scot47 wrote: |
| The mysteries of how decisions are reached within the Family of al-Saud ! Outsiders will never get to know that. The Golden Times are over. Pack your bags and accept the the Caravan is moving on. Only the desperate will think of Al-Saudiya now ! |
Shaykh Scot, while I hate to disagree with you, there are still plenty of excellent financial opportunities available in KSA... Maybe not like in your heyday, but still better than almost anywhere else in world (currently). |
If you look at savings potential, you are right - it is much better than the vast majority of places. But it is no longer top of the pile. In addition, the inconveniences of living and working there are escalating with regards to visa requirements etc. Throw in the fact that unscrupulous employers are becoming even more so as a result of spending cut backs ...... it becomes significantly less worthwhile. |
|
| Back to top |
|
|
bigdurian
Joined: 05 Feb 2014
Posts: 401
Location: Flashing my lights right behind you!
|
| Posted: Fri Oct 14, 2016 9:54 am Post subject: |
|
|
| Amerrycan Muslim wrote: |
| scot47 wrote: |
| The mysteries of how decisions are reached within the Family of al-Saud ! Outsiders will never get to know that. The Golden Times are over. Pack your bags and accept the the Caravan is moving on. Only the desperate will think of Al-Saudiya now ! |
Shaykh Scot, while I hate to disagree with you, there are still plenty of excellent financial opportunities available in KSA... Maybe not like in your heyday, but still better than almost anywhere else in world (currently). |
+1 |
|
| Back to top |
|
|
bigdurian
Joined: 05 Feb 2014
Posts: 401
Location: Flashing my lights right behind you!
|
| Posted: Fri Oct 14, 2016 9:56 am Post subject: |
|
|
| I-forgot wrote: |
| Amerrycan Muslim wrote: |
| scot47 wrote: |
| The mysteries of how decisions are reached within the Family of al-Saud ! Outsiders will never get to know that. The Golden Times are over. Pack your bags and accept the the Caravan is moving on. Only the desperate will think of Al-Saudiya now ! |
Shaykh Scot, while I hate to disagree with you, there are still plenty of excellent financial opportunities available in KSA... Maybe not like in your heyday, but still better than almost anywhere else in world (currently). |
If you look at savings potential, you are right - it is much better than the vast majority of places. But it is no longer top of the pile. In addition, the inconveniences of living and working there are escalating with regards to visa requirements etc. Throw in the fact that unscrupulous employers are becoming even more so as a result of spending cut backs ...... it becomes significantly less worthwhile. |
So where is top of the pile in your opinion? |
|
| Back to top |
|
|
scot47
Joined: 10 Jan 2003
Posts: 15343
|
| Posted: Fri Oct 14, 2016 10:01 am Post subject: |
|
|
| Come, traveller. Come with me to far Cathay ! |
|
| Back to top |
|
|
I-forgot
Joined: 28 Jun 2015
Posts: 153
Location: Riyadh
|
| Posted: Fri Oct 14, 2016 10:51 am Post subject: |
|
|
| bigdurian wrote: |
| I-forgot wrote: |
| Amerrycan Muslim wrote: |
| scot47 wrote: |
| The mysteries of how decisions are reached within the Family of al-Saud ! Outsiders will never get to know that. The Golden Times are over. Pack your bags and accept the the Caravan is moving on. Only the desperate will think of Al-Saudiya now ! |
Shaykh Scot, while I hate to disagree with you, there are still plenty of excellent financial opportunities available in KSA... Maybe not like in your heyday, but still better than almost anywhere else in world (currently). |
If you look at savings potential, you are right - it is much better than the vast majority of places. But it is no longer top of the pile. In addition, the inconveniences of living and working there are escalating with regards to visa requirements etc. Throw in the fact that unscrupulous employers are becoming even more so as a result of spending cut backs ...... it becomes significantly less worthwhile. |
So where is top of the pile in your opinion? |
Let me sign the contract and then I'll let you know!   |
|
| Back to top |
|
|
bigdurian
Joined: 05 Feb 2014
Posts: 401
Location: Flashing my lights right behind you!
|
| Posted: Fri Oct 14, 2016 12:18 pm Post subject: |
|
|
I think that for run of the mill contracting jobs, uni jobs etc there has been a downward trend in salaries etc, so other countries may be better or more attractive.
But for those on top paying jobs, and by this I mean 25k SAR a month and upwards, I can't see those salaries being matched anywhere else.
There may be less of these jobs around, but they do still exist, contrary to what some may say. |
|
| Back to top |
|
|
I-forgot
Joined: 28 Jun 2015
Posts: 153
Location: Riyadh
|
| Posted: Fri Oct 14, 2016 3:09 pm Post subject: |
|
|
| bigdurian wrote: |
I think that for run of the mill contracting jobs, uni jobs etc there has been a downward trend in salaries etc, so other countries may be better or more attractive.
But for those on top paying jobs, and by this I mean 25k SAR a month and upwards, I can't see those salaries being matched anywhere else.
There may be less of these jobs around, but they do still exist, contrary to what some may say. |
I agree.
Sadly, those top paying jobs are rarely for women.  |
|
| Back to top |
|
|
bigdurian
Joined: 05 Feb 2014
Posts: 401
Location: Flashing my lights right behind you!
|
| Posted: Fri Oct 14, 2016 3:21 pm Post subject: |
|
|
| I-forgot wrote: |
| bigdurian wrote: |
I think that for run of the mill contracting jobs, uni jobs etc there has been a downward trend in salaries etc, so other countries may be better or more attractive.
But for those on top paying jobs, and by this I mean 25k SAR a month and upwards, I can't see those salaries being matched anywhere else.
There may be less of these jobs around, but they do still exist, contrary to what some may say. |
I agree.
Sadly, those top paying jobs are rarely for women. |
Unfortunately true. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
