Saudi budget is balm for investors stung by austerity drive

Dubai

FOR investors who watched austerity measures pummel growth over the past two years, Saudi Arabia's 2018 budget is a relief.

The world's biggest oil exporter will boost spending to 1.1 trillion riyals (S$395 billion) to revive an economy that has languished as the country copes with lower oil prices. Ashmore Group plc says it's a sign Crown Prince Mohammed bin Salman's reforms are going ahead.

The spending plan exceeded expectations, said Jaap Meijer, the head of equity research at Arqaam Capital Ltd in Dubai. "Oil prices are up, which means there is fiscal space to support non-oil gross domestic product. Th…