Saudi bakal bangkrap

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Saudi Arabia Rating Cut by Fitch on Worsening Public Finances
by Arif Sharif  and Vivian Nereim
March 22, 2017, 11:03 PM GMT+8

Kingdom reported higher than expected budget deficit in 2016
Central bank’s net foreign assets fell by $49.5b in 7 months

Saudi Arabia’s credit worthiness was cut one level by Fitch Ratings, which said low oil prices were worsening public and external finances.

Fitch reduced Saudi Arabia’s rating to A+, the fifth-highest investment grade, and changed the outlook to stable from negative, the agency said in a statement on Wednesday. The downgrade “reflects the continued deterioration of public and external balance sheets, the significantly wider than expected fiscal deficit in 2016 and continued doubts about the extent to which the government’s ambitious reform program can be implemented," Fitch said.

The downgrade by Fitch “was anticipated,” the Finance Ministry said in an emailed statement. Saudi Arabia’s economic fundamentals are strong, it said. Fitch’s cut puts its Saudi rating on par with Moody’s Investors Service. Both classify the kingdom two levels above S& Global Ratings.

Saudi Arabia, where more than 60 percent of government revenue last year came from oil, reported a 15 percent rise in the federal government budget deficit to 17.3 percent of economic output in 2016, Fitch said. Net foreign assets of the central bank, or the Saudi Arabian Monetary Authority, fell by $49.5 billion, or 7.7 percent of gross domestic product, between June 2016 and January 2017.

“This is a surprise,” said Joice Mathew, head of equity research at United Securities in Muscat. Unless oil prices climb, Saudis stocks will likely drop on Thursday, he said. The benchmark Tadawul All Share Index retreated 1.2 percent at the close in Riyadh before Fitch’s announcement.

The figure Fitch used for the 2016 budget deficit is higher than the level the government considers official because it includes payments owed to contractors from previous years.

Economic Overhaul

Deputy Crown Prince Mohammed bin Salman, the 31-year-old son of King Salman bin Abdulaziz Al Saud, has begun a program to overhaul the economy and repair public finances by cutting subsidies and state spending. The kingdom also plans to to sell as much as 5 percent of oil giant Saudi Aramco in an IPO as part of a plan to set up the world’s biggest sovereign wealth fund.

“It’s very hard to argue that Saudi economic policy is worse now than it was two years ago,” Crispin Hawes, London-based managing director for Teneo Intelligence. “If anything it’s slightly better, and it’s in the process of breaking through some absolutely essential taboos in terms of the ability to raise revenue from sources other than crude oil.”

Fitch said the Saudi measures will help to contain further balance sheet erosion, but it is unlikely that they will all be achieved. The scale of the reform agenda risks overwhelming the government’s administrative capacity, while the economy may not be able to absorb rises in domestic fuel prices or the planned levies on expatriates, the agency said.

“The fundamentals of the Saudi economy remain strong," Finance Minister Mohammed Al-Jadaan said in the Saudi statement. General government assets are equivalent to more than 100 percent of economic output, and the government has rolled out "concrete structural reforms" to reduce dependence on oil, diversify the economy and rein in overspending, he said.

https://www.bloomberg.com/news/articles/2017-03-22/saudi-arabia-rating-cut-by-fitch-on-worsening-public-finances

hanya lafiji atau DAPig boleh selamatkan mereka   

wana89

Mohon @dcruin bagi sepatah dua kata

dcruins

Tak der laaa sampai bankrap, mereka pun dah nak ubah strategi tak nak bergantung pada revenue minyak jerrr memanjang, tuuu pasal melawat banyak negara kat Asia etc,proposal IPO $100 billion lagi yg buat Wall Street,Bursa China,Canada,Nikkei sampai laaa SGX terliur, invest dalam alternative energy macam solar etc sampai puluhan billion USD.....

keyword kedudukan fundemental mereka dari artikel kat atas tu,

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"assets are equivalent to more than 100 percent of economic output"


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Pajeri_Nenas

fed reserve dia bnyak

ohnoLia

Dah bertahun2 dok propah kata saudi bakal bangkrup.. namun tetap jha saudi aman sejahtera.  Ni semua mitos jha

dcruins

Tu la peranan rating agency, kena bagi warning awal.....sebab tu mereka berubah.

Tengok jerrr lawatan mereka ke China, China dapat investment sampai $65 Billion, Putera anak Raja Salman pi jumpa Trump, Trump dapat peluang investment dari Saudi kira2 $200 billion!!.... ,

harap2 rakyat China & American tak laaa sampai nak demo kat jalan raya tuduh negara mereka jual negara dengan Pak Arab pulakkk.....

tayam

revenue diorg bkn dari minyak sahaja, tgk berapa byk diaorg dpt setiap kali musim haji dan umroh

3abdul

tayam replied at 23-3-2017 02:37 AM
revenue diorg bkn dari minyak sahaja, tgk berapa byk diaorg dpt setiap kali musim haji dan umroh

bukankah depa mengelupur apb Iran enggan mengizinkan rakyat mereka pi haji kat saudi? syiah tu.......   

ohnoLia

3abdul replied at 23-3-2017 11:08 PM
bukankah depa mengelupur apb Iran enggan mengizinkan rakyat mereka pi haji kat saudi? syiah tu.... ...

bukan begitu ai fikir, mereka menggelupur kerana mereka sedar akan unity dan perpaduan ummah... saudi tak perlukan pun duit rakyat iran atau syiah.
tp atas rasa persaudaraan dan ukhuwah, maka mereka ingin perbetulkan keadaan

3abdul

ohnoLia replied at 23-3-2017 03:24 PM
bukan begitu ai fikir, mereka menggelupur kerana mereka sedar akan unity dan perpaduan ummah... sa ...

baru depa sedar syiah tu pun islam?  

ohnoLia

3abdul replied at 24-3-2017 12:10 AM
baru depa sedar syiah tu pun islam?

dah tukar pulak nickname ye?   3abdul lah pulak  

saladin780

xde nya bangkrup..brp ramai yg gi haji smpi berjuta2 tuh.. x masuk yg gi umrah lagi setiap hari..ni cuti skolah ni penuh je klia tu org nak gi arab saudi hari2 buat umrah

jazaa100

3abdul replied at 23-3-2017 11:08 PM
bukankah depa mengelupur apb Iran enggan mengizinkan rakyat mereka pi haji kat saudi? syiah tu.... ...

Arab mengelupur iran boikot haji?.....


Kau bior betul....

3abdul

jazaa100 replied at 23-3-2017 04:43 PM
Arab mengelupur iran boikot haji?.....

abes tu pesal tok arab sibuk nak jemput wakil iran utk bincang pasal haji?  

jazaa100

3abdul replied at 24-3-2017 01:57 AM
abes tu pesal tok arab sibuk nak jemput wakil iran utk bincang pasal haji?

Sbb agama....

Klu sbb duit, msia & negara lain sentiasa tgu nk dpt quota lebih...tak payah lah org tgu aampai 70thn nk dpt quota dik...


Btw kau dah daftar hj ke blm....klu sudah, kau blh paham situasi ni ......

Lagubestbest

Kalau saudi arabia takde duit pun, kekayaan keluarga saud takkan menyusut pun.