Friday, September 30, 2016

Commentary- The Saudi-Yemen war backfires with economic consequences

(Medeshi)- The Saudi genocide committed against Yemen which is the poorest country in the Gulf States is backfiring with economic consequences.

The Saudis have accepted this week  to reduce the OPEC out put by one million barrels a day despite refusing the reduction for the last several years.
They have also taken austerity measures after $100 billion  deficit in the fiscal budget.
They have announced an overall  cut of 20% of the civil servant salaries.
Salary of ministers has been reduced by  to 20% and 15% for the Shoura or house of elders.
1300 contract workers from the Quran printing state owned company were given letters of termination this week according to Saudi Gazzette. All of the contract workers are foreigners.
So austerity bites the House of Al Saud with no cuts mentioned in the billions of allowance given to the  members of the ruling  family.
The Yemen war seems to have damaged the image of the Saudis overseas because of failure of the so called coalition to defeat the rebels . The rebels that are labelled as Shia by the Saudis include Sunnis also .
The Saudi support  for ISIS is also another  economic drain for the Kingdom.