Business
Austerity hits young Saudis as global oil prices dip
Saudi Arabia’s young population is at the forefront of a changing economy following the continuous downward slide of global oil prices which has reached an all time low.
In other continents like Africa, Europe or the Americas, it may be a familiar story to tighten spending following imposed austerity measures but the case may be different in a country synonymous with conspicuous consumption.
To say the least, the belt-tightening measures which are now being adopted in Saudi Arabia is more than unsettling.
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Reports say Saudi’s are now going through unprecedented cuts to fuel and energy subsidies which is forcing the kind of rigor never seen during the era of petrodollar-fueled wealth that quadrupled per-capita income since the late 1980s.
Those aged 15 to 34, who make up more than 40 percent of the 21 million Saudis, are at the forefront of the upheaval. No longer can they take for granted free health care, gasoline at 20 cents a liter and routine pay increases.
“A lot of things will change,” said Hathut, 30, who plans to supplement his income as a business-administration teacher at a Riyadh university with private training sessions. “But many youths are still in a state of shock. They haven’t processed the news and what to do.”
Homes and businesses are now adjusting to the new economy with oil having plunged to $30 a barrel and signs of the tectonic shift taking place in the ultra-conservative Islamic kingdom everywhere.
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