Saudi Arabia’s government is cutting unnecessary expenses to compensate for low oil prices and may delay some projects, Finance Minister Ibrahim Alassaf has said.
Alassaf, who is visiting Washington with Saudi Arabia’s King Salman and other top officials, revealed projects that are important for the economoy will still go ahead as planned.
Speaking to CNBC Arabia, he said: “We have built reserves, cut public debt to near-zero levels and we are now working on cutting unnecessary expenses while focusing on main development projects and on building human resources in the kingdom.
“There are some projects like the ones that have been approved a few years ago and haven’t been carried out until now – that means such projects are not currently necessary and can be delayed.
“Projects in sectors such as education, health and infrastructure are not only important for the private sector but also for the long-term growth of the Saudi economy.”
In July, Riyadh began issuing sovereign bonds for the first time since 2007 in order to help cover a huge state budget deficit created by cheap oil.
Alassaf said the government would continue issuing bonds and might also sell Islamic bonds, or sukuk, to finance specific projects.
