Riyadh continues to prepare for its first borrowing from the global debt markets. Saudi Arabia needs it because of low oil prices and increased costs as a result of the extension of its military presence in Syria and Yemen.
As a result of the increased financial pressure over the past year, foreign exchange reserves fell by $97 billion to $640 billion. The budget for this year was built into a deficit of $87 billion. By 2020 the debt of Saudi Arabia may reach 50% of GDP compared to 1.6% of GDP at the end of 2014, the Financial Times reports.
