© Khaled Desouki / AFP / Getty
More than two-thirds of all Saudis in employment work for the government - compared to fewer than 20 percent for the US - and last year the kingdom spent about 45 percent of its budget, or $128 billion, to pay their wages. Prior to recent reforms, even a conscientious Saudi national civil servant had generous perks - a 35-hour working week, almost no prospect of being made redundant, and frequent bonuses, such as two monthly salaries paid to every bureaucrat, when King Salman ascended to the throne in early 2015. "In my ministry we have more than a million job applicants. Of them, 200,000 are already working in the private sector and are prepared to take a pay cut," said Alaraj.
With the economy expected to expand by only 1.2 percent this year, and oil prices hovering at around $50 per barrel, Saudi Arabia vast oil reserves, which still stand at over $500 billion, have been depleting at an alarming rate. "If we didn't take any reform measures, and if the global economy stays the same, then we're doomed for bankruptcy in three to four years," said Mohamed Al Tuwaijri, the deputy economy minister, at the same meeting.
Comment: Saudi Arabia needs crude oil to be priced at $103/barrel in order to balance their budget. Perhaps facing bankruptcy will curb Saudi Arabia's military spending, putting an end to the war in Yemen and the funding of Islamic groups in Syria.