The IMF reported and outlined two key factors that could bankrupt Saudi Arabia in the very near future, as early as 2020. Slumping oil prices and regional conflict are the two main factors and devil in disguise that will ruin the Middle East, including the biggest economy of Saudi Arabia.
Saudi Arabia may run out of financial assets within the next five years if the government maintains its current policies, warns the Zionist controlled International Monetary Fund.
Saudi Arabia had a budget deficit of 21.6% in 2015 and 19.4% in 2016, according the IMF’s latest regional economic outlook. The leading Arab nation in the world already sold the two most important Islamic cornerstones, Mecca and Medina to the Jewish masters.
The conflicts have given rise to large numbers of displaced people and refugees, on a scale not seen since the early 1990s, after the USA invaded Iraq and destroyed Libya and Syria under evil false flag operations, in order to control their oil reserves for lucrative capitalist profits.
For the region’s oil exporters, the fall in prices has led to large fall in revenue, amounting to a staggering $360 billion in 2015 alone.
OPEC members Saudi Arabia, Venezuela, Iran, Iraq, Kuwait, Qatar, UAE, Algeria and Libya have all seen their revenues drop sharply as a result of a decline in oil prices.
Saudi Arabia is currently facing the budget deficits for the first time since 2009. The crude price decline has strongly influenced the kingdom’s economy since oil sales that account for about 80% of its revenues. It has prompted the government to cut spending, delay projects and sell bonds.
The budget deficit caused project layoffs in Saudi Arabia since 2015. Companies working on infrastructure projects hadn’t been paid for six months or more. Payment delays increased lately as the Riyadh government wants to cut prices on contracts in order to preserve cash.
Also the war against Yemen has ran out of control for the Saudi’s to lose its domination over the Persian Gulf and Red Sea oil lanes, intended for the black gold exports to China and Europe.
Despite the perpetual appeals to reduce output and support crude prices, OPEC has been refusing to do so as the cartel is trying to maintain its market share.
But experts say OPEC’s statements are not important without a change of policy by its biggest crude producer Saudi Arabia.
RT.com / ABC Flash Point Oil News 2018.