RIYADH: Saudi Arabia’s net foreign assets fell for the 15th month in a row in April, as the kingdom announced its “vision” for a post-oil future. The Saudi Arabian Monetary Agency said net foreign assets declined 1.1% to US$572bil, the lowest level in four years.
The slump in crude prices has forced the government to sell bonds and draw on its currency reserves, still among the world’s largest. Net foreign assets fell by US$115bil last year, when the kingdom ran a budget deficit of nearly US$100bil. The fiscal crunch has pushed Saudi Arabia’s rulers to look beyond oil, consider new taxes, and plan an initial public offering of state giant Saudi Arabian Oil Co.
Deputy Crown Prince Mohammed Salman sketched out the planned changes dubbed Saudi Vision 2030 on April 25. Brent crude declined for a third day, falling 0.5% to US$49.07 a barrel at 9:42am in Dubai, bringing the drop for the past year to 24%. It traded above US$100 a barrel two years ago.
The strain on reserves has also fueled speculation that the kingdom would adjust its decades-old riyal peg to the dollar. New central bank governor Ahmed Alkholifey told Al-Arabiya last Thursday that Saudi Arabia doesn’t plan to change its exchange rate policy.
