Economic problems of Saudi Arabia
Keywords:
Russia, Saudi Arabia, drop in oil prices, financial and economic problems, state budget, increase of non-oil revenues, Vision 2030, economic cooperationAbstract
The article examines the impact of the fall in global oil prices on the economy of Saudi Arabia, on the state of the national budgets (2015-2018) and on the fiscal situation as a whole. In the face of a decline in revenues from oil exports, the kingdom’s government was forced to reduce public spending, in particular, investment allocations. Special focus is given to the analysis of the activities of the ruling Saudi elite to increase the so-called non-oil revenues to the treasury of the
kingdom. At the same time the decline in oil revenues in recent years has clearly demonstrated the objective need to structural transformations in order to reduce cardinally the dependence of
the Saudi Arabian economy on oil. Therefore, the author pays much attention in the article to the consideration of the new program of economic diversification of the country – Vision 2030, adopted in April 2016. Implementation of this plan opens prospects to further expansion of trade and economic ties and investment cooperation between Saudi Arabia and Russia, which has remarkably intensified in recent years.
