Saudi stability will enable economic progress

Significance The move follows its second initial public offering in June, when it raised more than USD12bn, which helps boost the government's accounts and the country's sovereign wealth fund, the Public Investment Fund (PIF). The government and the PIF have also resorted to external financing to support major infrastructure and development projects. Impacts On becoming king, bin Salman would likely launch a fresh slate of political, social and economic initiatives. The increase in oil output will enable stronger real GDP growth, while the non-oil private sector will benefit from public investments. Aramco will step up its investment in domestic natural gas development and in the acquisition of liquefied natural gas assets abroad. The government's borrowing will be sufficient to cover the country's fiscal deficit.