“Opec’s largest oil producer seeks to plug its budget deficit”

Saudi Arabia has withdrawn as much as US$70 billion from global asset managers as Opec’s largest oil producer seeks to plug its budget deficit after crude slumped, according to financial services market intelligence company Insight Discovery. “Fund managers we’ve spoken to estimate Sama has pulled out between $50bn to $70bn from global asset managers over the past six months,” Nigel Sillitoe, chief executive officer of the Dubai-based firm, said by telephone Monday. “Saudi Arabia is withdrawing funds because it’s trying to cut its widening deficit and it’s financing the war in Yemen,” he said, declining to name the fund managers. Saudi Arabia is seeking to stem a decline in its finances after a 50 per cent drop in oil during the past 12 months. The Saudi Arabian Monetary Authority’s reserves held in foreign securities have fallen about 10 per cent from a peak of $737bn last August to $661bn in July, according to data from the central bank”.

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