Saudi Arabia takes billions from asset managers to shrink deficit
Saudi Arabia has pulled up to $70bn (£46bn) out of global asset managers in a bid to cut its deficit and reduce exposure to equities markets as it struggles to deal with weakened global oil prices.
According to a report in the Financial Times, the Saudi Arabian Monetary Agency’s foreign reserves have fallen by almost $73bn since the oil price began to fall last year.
The price of benchmark Brent crude has dropped from more than $100 per barrel in June 2014, to trade at less than $50 yesterday.
The Saudis have continued spending to sustain the economy as well as to fund the kingdom’s ongoing military campaign in Yemen.