Saudi restores bonuses, allowances
RIYADH: King Salman restored bonuses and allowances for Saudi state employees, appointed one of his sons as ambassador to the United States and promoted another within the energy ministry, in the latest spate of decrees aiming to bolster economic growth and reorganise the government.
The king said the bonuses were restored as revenue increased and the budget deficit declined, according to decrees carried by the official Saudi Press Agency late on Saturday.
He replaced the commander of the land forces and ordered the Ministry of Finance to pay a twomonth salary bonus to Saudi forces serving on the front lines with Yemen.
Prince Abdulaziz bin Salman, a son of the king, was named Minister of State for Energy Affairs, while Prince Khalid bin Salman was appointed ambassador to the US. The broader overhaul to the government comes as Saudi leadership confronts a slowing economy and seeks to reset ties under President Donald Trump after a frosty relationship with the Obama administration.
The drop in oil prices and austerity measures have caused the worst economic slowdown since the global financial crisis.
The decision could help bolster consumer spending and revive growth.
The International Monetary Fund expects growth to slow to 0.4 per cent this year, from 1.4 per cent last year.
The Tadawul Consumer Services Index has dropped 15 per cent this year, compared with a four per cent decline in the benchmark gauge.
“The incremental increase of public sector workers’ disposable income would help boost positive sentiment as domestic demand recovers,” said Mohammed Alsheikh, minister of state and a member of the cabinet.
“Spending cuts over the past two years have resulted in better than forecast revenues and reduction in expenditures for the government budget,” he said.
Saturday’s announcement “came in the wake of the considerably better-than-anticipated budgetary performance in the first quarter, which was driven by strengthened expenditure management and higher revenue inflows”, he said. Bloomberg