HedgeFundLIVE.com — Given all that is going on in the MENA region (Middle East / North Africa) and the fears that it will spread to Saudi Arabia, I thought it made sense to actually list the things that King Abdullah is doing to prevent this from happening. The bulk of the items in the list below are part of the $36bln in spending programs announced by King Abdullah a few weeks ago.
1) King Abdullah has announced structural reforms at the political level including ministerial reshuffling as well as opening a dialogue on a possible move towards a constitutional monarchy.
2) Extension of the inflation allowance for the country’s public servants at an estimated cost of $8.5bln.
3) Increase the budget of the country’s housing fund by approximately $11bln and raise the housing sector budget by $4bln.
4) Raise the capital of the Saudi Credit Fund (SCF) by $8bln to support lending to small and medium businesses and cancel two yearly installments for clients of the credit bank.
5) Inject an additional $270mln into the budget of the Social Security Fund.
6) Increase the budget of charitable organizations by 50% as well as inject $2.5mln to every literary club and professional association as well as providing increased support to sports clubs.
7) Support needy students at universities and cover all stipends of students studying abroad to the King Abdullah Scholarship program.
8) Confirm a 15% inflation allowance to become part of the basic wages of public sector employees which is effectively a 15% increase in public sector wages.
9) Create 1200 jobs to support supervisory programs.
10) Defer loan payments for a large number of individuals who are currently in jail.
11) Provide a one year unemployment allowance for individuals looking for employment.
12) Increase wheat reserves to cover Saudi Arabia’s needs for a full year instead of six months.COME JOIN OUR LIVE BROADCAST MON-FRI 8AM – 5PM AT HEDGEFUNDLIVE.COM. PICK A CHANNEL AND GET CONNECTED.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.