Saudi's Cheap Loans For Job-rich Industries ​​​​​​​

Econmic recovery plan includes getting Saudis into the workforce. “The government recognises that there is a slowdown”

- Alaa Shahine

Saudi Arabia may offer “almost interest-free” loans to companies in labourintensive industries, as part of a plan to stimulate an economy squeezed by low oil prices and spending cuts, Finance Minister Mohammed Al-Jadaan said.

Al-Jadaan, speaking in an interview in Washington, also said the government is on track to slash its budget deficit by 30 per cent this year to about 200 billion Saudi riyals ($53 billion), and aims to finance it mainly through debt sales instead of drawing n reserves. This means the kingdom will likely tap global bond markets again this year after raising $9 billion from its debut Islamic debt sale, he said.

Saudi Arabia has embarked on what it describes as an unprecedented shakeup of an economy that’s heavily reliant on oil. The so-called Vision 2030, spearheaded by Deputy Crown Prince Mohammed bin Salman, was announced last year and includes plans to sell shares in state companies and curb government spending on subsidies and wages.

Austerity and low oil prices have led to the worst economic slowdown since the global financial crisis. The International Monetary Fund expects growth to slow to 0.4 per cent this year from 1.4 per cent in 2016 after the kingdom agreed on oil-output cuts with other OPEC members.