Prospectus Sheds Light on Saudi Economy

The video discusses Saudi Arabia's first sovereign bond issuance amidst an economic backdrop of falling oil prices. It highlights significant budget cuts, particularly in capital expenditure, and a shift towards economic diversification. The discussion also covers the kingdom's rising debt levels, which have become a concern for investors. The government aims to increase debt to 30% of GDP by 2020 while pursuing economic transformation initiatives to stabilize finances and reassure investors.

What significant change has Saudi Arabia made in its 2016 budget?

• Increased capital expenditure by 70%

• Increased spending on oil production

• Reduced capital expenditure by 70%

• Maintained the same level of capital expenditure

How is the Saudi government reassuring investors amidst the oil crisis?

• By borrowing more money

• By raising taxes

• By cutting unnecessary spending

• By increasing oil production

What is the target debt level of Saudi Arabia by 2020?

• 10% of GDP

• 40% of GDP

• 20% of GDP

• 30% of GDP

What is the main focus of Saudi Arabia's economic transformation initiatives?

• Economic diversification

• Reducing government debt

• Building new oil refineries

• Increasing oil exports

Why is Saudi Arabia concerned about its rising debt levels?

• It wants to increase its oil reserves

• It aims to reduce reliance on sovereign reserves

• It plans to cut taxes

• It intends to increase public sector jobs