Saudis find it hard to make ends meet as austerity starts to bite

Riyadh

FAHAD bin Raja sells cars for a living in Saudi Arabia's capital. Abdullah Saeed drives them. In the kingdom's new age of austerity, both men are finding it harder to make ends meet.

Mr Saeed, 63, said that his monthly rent of about 2,000 riyals (S$717) is covered by social insurance payments, but that leaves the cost of supporting his wife and five of his nine children who live at home. He drives a taxi and his wife sells home-made perfumes. As higher fuel and utility bills eat into his income, "it's getting very hard to earn money in Riyadh", he said.

Saudi consumers are getting squeezed by the government's masterplan to rein in spending and reduce dependence on energy exports after a two-year oil slump. Subsidies for petrol, electricity and water have been slashed, and there is more to come. Deputy Crown Prince Mohammed bin Salman, the prog…