Saudi Arabia: What Happens When the Oil Stops – Astute News
There are many examples of money running out. The king decreed that the state would pay 60 percent of salaries during the coronavirus shutdown.
But employees of the Saudi’s biggest telecoms company STC are only getting 10 percent of their salaries, I am told, because the government is not paying STC the money for the furloughed staff.
The Saudi Ministry of Health has been requisitioning hotels to run as hospitals. Instead of compensating hotel owners for the temporary loss of their property or paying them a cost price, they are forcing them to pay the running costs in addition to the costs of disinfecting the rooms.
Or take the paycut Egyptian doctors working in the Saudi private health sector are being forced to take. Those who are on annual leave, are not being paid. Those who are instructed to work from home on shifts by their hospitals to lessen the risk of infection, either have to take that time from their annual leave or work for free.
So, as Bloomberg reported, the prospect of Saudi becoming a net debtor nation is real. The question is how soon that happens.