FX.co ★ Coronavirus and oil price crash cast doubt on Saudi’s prince authority

Saudi Arabia is taking unprecedented measures to mitigate the blow after a plunge of oil prices and the novel coronavirus pandemic. Reportedly, these predicaments have significantly shaken the legitimacy of Saudi Crown Prince Mohammed bin Salman on the kingdom's financial fortunes. According to some resources, the country is experiencing not only a financial but also a political crisis. The corona crisis has forced Riyadh to cut capital expenditures for some government agencies. What is more, Saudi citizens will also lose a bonus cost-of-living allowance and the value added tax will be increased to 15% from 5%. These measures are being criticized and the crone prince is losing popularity among the citizens. For this reason, Mohammed bin Salman sometimes hives very fiery speeches about the bright and better future after the crisis. However, it cannot be achieved without a joint sacrifice. He assures the citizens that the kingdom will overcome this financial crisis and everything will get to normal. He also stresses that Saudi Arabia has a strong economy and it is capable of protecting its citizens from the corona crisis. The Saudi Arabian Monetary Authority is paying financial compensation to private sector industries most impacted by the pandemic. Despite the fact that the kingdom responded quickly to the virus, expanding sectors of the economy such as tourism and entertainment have been hit hard by the shutdown.