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Saudi budget deficit to cause social unrest: Analyst

Wednesday, 30 December 2015 7:24 AM [ Last Update: Wednesday, 30 December 2015 7:25 AM ]

A picture provided by the Saudi Press Agency (SPA) on December 28, 2015 shows Saudi King Salman bin Abdulaziz at a meeting of the Council of Ministers in the capital, Riyadh. (AFP Photo)

Press TV has conducted an interview with the author of Big Oil & Their Bankers in the Persian Gulf, Dean Henderson, from Memphis, and Sean O'Grady, a financial editor with The Independent from London, to discuss Saudi Arabia's budget deficit.

Henderson said that basically there are two Saudi Arabias -- one the Saudi royal family led by King Salman bin Abdulaziz, who, according to him, is very unpopular even among the members of the House of Saud, and the other one, the Saudi people.

In his view, Saudi officials would not let the budget deficit to squeeze the royal family as they benefit from vast financial assets.

In his opinion, Saudi officials will impose more austerity on their own people by cutting subsidies on fuel and other goods to make up for the budget deficit.

Riyadh’s foreign policy especially in funding extremist terror groups such as Daesh or al-Qaeda has enraged the Saudi people, Henderson said, adding that future economic pressures caused by the budget deficit would provide Saudi people with enough excuse to form some social and political movements against their own “Medieval sort of regime.”

Meanwhile, O'Grady said that Saudi Arabia is an extremely rich country that possesses vast reserves of oil and financial assets which can help them deflect the aftershocks of the recent budget deficit.

“Saudi Arabia is not about to bust. Saudi Arabia is not the new Greece. Saudi Arabia is not going to beg any country for money any time soon,” he added.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk

Saudi Arabia