The danger threatens the Saudi Arabia’s budget

YemenExtra

Y.A

Saudi Arabia’s war on Yemen has brought more military, political and economic losses to the kingdom, economic reports indicate that Saudi Arabia has lost all its monetary and non-monetary reserves.

Saudi Arabia has asked banks for proposals to refinance its $10 billion international syndicated loan and to help the sovereign raise funds through other means.

But the question is how does Saudi Arabia take loan from global banks to revive its sovereign funds and it is the world’s largest oil exporter?

The collapse in oil prices has slashed the Kingdom’s main source of revenue which makes 77 – to – 88 per cent of its total income. For the last years, the Saudi government has declared a huge deficit in its budgets. The Kingdom’s unveiled budget predicts a deficit of ($ 52 billion). In addition to the increased losses due to its aggression on Yemen on 26 March 2015, this is the second loan since the aggression on Yemen, where the first loan was 2016.

Due to KSA’s military interventions in the region and sharp decline in oil prices, cost of subsidies and military spending, including the war in Yemen and the confrontation against the resistance in Syria, Iraq and Lebanon, are all factors that will continue impacting the Kingdom’s financial position.

As well as, the human and economic losses suffered by the Saudi army and its mercenaries in Yemen, and to fill this deficit, Saudi Arabia was forced to make huge deals with some European and American countries, including the United States of America, in 2017 worth $ 350 billion with Saudi Arabia , The largest deal in world history. The deal also included tanks, combat ships, missile defense systems, radars, communications technology and cyber-security. The deal was described by the news agencies as an “important” and “historic” development in US relations with Saudi Arabia.

Finally:

After more than a thousand days of Saudi-US aggression on Yemen, the kingdom still sunken in the Yemeni quagmire (economic, political and military), although Saudi Crown Prince Mohammed bin Salman, first of its decisions after his appointment as defense minister, had predicted that the war on Yemen would not last long more than three months, but was still going on after about three years.

Source: Website