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Is Saudi Arabia heading toward financial crisis?

During the past few months, Saudi economy showed some negative signs, as it recorded its lowest growth rate during the second quarter of last year, since 2013. Because of the decline in oil revenues and the subsequent reduction of public spending, which had a negative impact on the private sector and consumer spending.
Impending financial crisis in Saudi Arabia
Hedge-fund manager Zachary Schreiber, CEO of "Point State Capital", warning of a looming financial disaster in Saudi Arabia, adding that the country has only two years before the crisis happens.
According to "CNN", Schreiber said that: "Saudi has two to three years of runway before it hits a wall, as it will be structurally insolvent by that point because it faces the twin threats of huge spending commitments and cheap oil,"
It is worth mentioning that two years ago, Schreiber predicted a sharp drop in oil prices, and his expectations met the reality.
During the past few months, Saudi economy showed some negative signs, as it recorded its lowest growth rate during the second quarter of last year, since 2013. Because of the decline in oil revenues and the subsequent reduction of public spending, which had a negative impact on the private sector and consumer spending.
Impending financial crisis in Saudi Arabia
Hedge-fund manager Zachary Schreiber, CEO of "Point State Capital", warning of a looming financial disaster in Saudi Arabia, adding that the country has only two years before the crisis happens.
According to "CNN", Schreiber said that: "Saudi has two to three years of runway before it hits a wall, as it will be structurally insolvent by that point because it faces the twin threats of huge spending commitments and cheap oil,"
It is worth mentioning that two years ago, Schreiber predicted a sharp drop in oil prices, and his expectations met the reality.
Launching dollar bonds
Bloomberg said that the Saudi government will sell bonds worth $10 billion to provide the necessary liquidity to sustain economic activity.
According to a number of economic experts, these bonds would benefit the Saudi economy dramatically. Accordingly, the IMF has predicted that in the light of the Saudi financial policy, the economy might grow by 1.2% in 2016 to reach 2% by the coming year.