MBS Policies Lead to an Unprecedented Rise in Public Debt

MBS Policies Lead to an Unprecedented Rise in Public Debt

MBS Policies Lead to an Unprecedented Rise in Public Debt
MBS Policies Lead to an Unprecedented Rise in Public Debt

In shocking statistics on the economic situation of the Kingdom of Saudi Arabia, the statistics announced that the public debt of the Kingdom has reached about one hundred billion Saudi riyals, due to the high rates of corruption in the state, uncontrolled spending, and the deficient policies pursued by Mohammed bin Salman.

Statistics indicated that the Saudi public debt has doubled more than 21 times, in less than seven years, as the public debt recorded an accelerated growth during the second quarter of this year 2021 by about 2.4%.

The Saudi public debt also increased by about 922.8 billion riyals, after it was 901.4 riyals, at the end of the first quarter of this year 2021.

In the same context, the internal debt amounted to about 535.3 billion riyals, equivalent to 58%, while the external debt amounted to about 387.5 billion riyals, which constitutes about 42%.

Statistics also indicated that the public debt of Saudi Arabia was 44 billion riyals in 2014, when bin Salman appeared on the political and economic scene, which means that the public debt has doubled nearly 21 times in less than 7 years.

It is worth noting that five major economic crises have afflicted the Kingdom of Saudi Arabia, which is trying during the current period to diversify its economy in a way that does not make it completely dependent on oil as a main resource for the economy, in light of fluctuating prices, and the attempt to diversify the economy have been unsuccessful.

The most severe of these crises that afflicted the Kingdom and its economy was the double crisis represented by the repercussions of the Corona pandemic, and the declaration of the oil war, which was ignited by bin Salman’s deficient policies, when he declared war on Russia in the field of oil, but that war affected the private sector only, as the economic problems exacerbated, many companies were forced to close and lay off workers.

As for the Saudi citizen, they appeared in the form of austerity, high taxes, government services, electricity and water bills, and high gasoline prices in the oil kingdom.

KSA also lost a great deal of income after the annual Hajj season was limited to 1,000 pilgrims, and all Hajj and Umrah trips were suspended, which forced bin Salman to impose value-added tax for the first time, and to reduce fuel subsidies, as he resorted to raising the value of the value-added tax threefold to reach 15 percent.

Bin Salman also imposed taxes on various government and commercial services, the unemployment rate rose, beggary and poverty spread, and the flight of Saudis to Europe, forcing KSA to borrow an amount of $26.6 billion after it depleted its foreign exchange reserves.

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