Saudi Arabia has stated that current low oil prices will not have an adverse effect on its budget, according to finance minister Ibrahim Alassaf.
Speaking to Saudi newspaper Okaz said:
“The global oil situation usually in one way or another affects countries’ revenues and debts, but the kingdom has always been keen on building its budgets on estimates that take all possibilities into consideration.”
The price of Brent crude has now fallen below $80 a barrel, down from around $115 in June. A recent IMF report stated that the oil price that Saudi Arabia requires to balance its budget rose to $89 a barrel in 2013.
However, economists believe the country’s huge fiscal and foreign reserves mean financing that deficit will be easy.
The country’s 2015 budget plan is expected to be announced in late December.
