Retrench after Saudi companies fall in oil prices

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Saudi companies want to diversify and protect their work after the geopolitical confusion.

Saudi Arabia has exposed periods of slander and bust run by swings in raw prices, depending on the expenditure of fuel with energy exports for a long time.

The end of oil In January, about $ 80 to about $ 60 – the lowest and lowest kingdom break since 2021, even for years, even for years to witness private enterprises.

A Saudi technology entrepreneurs, in 2016, after 2016 has forced the first job after cutting the state sector employee bonuses and benefits after the collapse of oil, he said.

This time, one of the companies working customer loyalty programs for other enterprises, protecting the effects and expanding the new sectors such as food and beverages, the rising tourism said.

“Of course, there will be a drop on the government’s spending, so we diversified our income rates to reduce this risk,” he said. He added that “government customers now represent less than 10 percent for us.”

However, the entrepreneur, the second company that offers enterprise software services is still acquiring the majority of revenues from government agreements, he said, he said.

“If oil prices decrease, they will stop using us,” he said.

In 2016, Prince Mohammad, investing in everything in tourism, launched an ambitious plan to relate to Kingdom oil revenues Futuristic infrastructure projects. The government also aims to increase its contribution to 40 percent to 65 percent to 65 percent GDP in 2016.

Authorities have made economic reforms, including the economy, including the government’s lifting of non-oil revenues through taxes, less susceptible to the volatility of oil prices. In 2024, in 2024, in non-oil exports, the oil has still accounted for 61.6 percent of state revenues.

Despite diversification efforts, the spending of state and related institutions such as the State Investment Fund is still the main driver of economic activity. The 940-billion Sovereign Wealth Foundation monitors extensive projects that are currently working to create a job and unlock new sectors for a longer growth increase.

After ten years of frenetic activity, the government agencies recently said that as governments re-calculating their priorities of Riyadh’s expenses. Some words of the kingdom Flagship neom scheme, including gigaprojectsdelays or reworked to be performed on a longer schedule.

Saudi Arabia has started to increase oil production last month, which is a turn of the strategy that the Kingdom is preparing to endure a period for a larger market share.

“Immediate concern for Saudi enterprises will be a change in government contractors or rewards or changes in capital value or capital value or capital value,” The global energy policy of the University of Columbia

During the last oil landslide between 2014 and 2016, the government caused great delays in paying contractors, and many enterprises were damaged. Authorities say subsequent reforms are currently repaid the contractors on time.

During the Kingdom, franchise restaurants said a veteran executive, which works for a chain-working company, said he should feel slowly. However, he said he was worried about the violation of the potential of global supply chains due to trade tensions, followed by the tariffs applied by the US President Donald Trump.

“We still see people who spend money,” he said and said that a year ago was a bit high in the holiday and traffic during the holiday Al-Fitr vacation a year ago.

“But I keep a very close eye on the side of the supply. We still import beef products and such things.” “The hospitality industry operates in a very thin margin in terms of profitability. Thus, any fluctuation or change in the supply chain may affect our sub-line.”