Saudi Arabia plans to borrow heavily and once again lean on its foreign reserves in order to fill its widening 2020 budget deficit. With Covid-19 decimating oil markets and forcing governments to impose severe restrictions which will dampen economic activity, governments across the globe are having to tear up their 2020 budget plans.

Saudi Minister of Finance Muhammad al-Jadaan provided an important update on 22 April as to how the kingdom plans to weather the economic storm. Mr Jadaan says that Saudi Arabia could borrow as much as $58bn over the course of 2020, and draw-down an additional $32bn from its foreign reserves. Foreign reserves exited 2019 at $500bn, up slightly on 2017 and 2018 levels. (CONTINUED - 607 WORDS)