Saudi Arabia to trim spending by $13.3 billion

Saudi Arabia said the government will cut spending by 5%, or about $13.3 billion, to offset the impact of plunging oil prices and the effects of COVID-19 outbreak on its economic outlook and deficit.

In a statement carried by the State-run Saudi Press Agency, Finance Minister Mohammad Al-Jadaan said additional measures would be taken to deal with the drop in oil prices, but he did not elaborate further.

Saudi Arabia has around $500 billion in foreign reserves, but with oil prices plummeting to around $26 a barrel and tourism revenue drying up due to a suspension of the Muslim pilgrimage to Mecca, it was expected the kingdom would make cuts to its spending.