Can Saudi Arabia afford a stimulus?

Oil-revenue-dependent Saudi Arabia still has $490 billion in reserve assets, but its massive foreign and domestic commitments and a long-term declining demand curve for oil could spell trouble down the road.
An Aramco emplyee looks over Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. Picture taken May 21, 2018. REUTERS/Ahmed Jadallah - RC1FE84D0AE0
An Aramco employee looks over Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia, May 21, 2018. - REUTERS/Ahmed Jadallah
Karen Young
Karen Young
@ProfessorKaren

2019 is already a very costly year for Saudi Arabia.

In addition to commitments of direct financial support to central banks, aid, and foreign direct investment by state companies to a number of regional governments made over the past year, Saudi Arabia also plans a massive stimulus package in infrastructure spending to prompt domestic growth.

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