Skip to main content

Saudi external position deteriorating even before drop in oil prices

The plunge in oil prices over the past year has forced Saudi Arabia to dip into its foreign exchange reserves, but one point that is often overlooked is that the Kingdom’s external position had been deteriorating for some time before that. In particular, the emergence of significant capital outflows means that FX reserves have been called upon far earlier than might have otherwise been the case. 

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.