Expect Further FX Reserve Drawdowns in Saudi Arabia: Abu Dhabi Commercial Bank

Saudi Arabia faces economic challenges as foreign currency reserves decline, impacting fiscal positions. The drop in FX reserves is sharp, returning to 2011 levels. This decline is partly due to fiscal deficits and support measures. Future pressures are expected with lower oil prices, leading the government to focus on raising debt. Forecasts suggest government debt will rise from 24% to over 30% of GDP, with a larger fiscal deficit than official estimates.

What factors are contributing to the pressure on Saudi Arabia's reserves?

What is the expected trend for Saudi Arabia's government debt this year?