Saudi Arabia is redrafting its main reform plan just over a year after its much-hyped launch, stripping out some areas earmarked for change and extending the timeline of other targets.
Core elements of the original plan included privatizing state assets, creating 1.2m private sector jobs and reducing unemployment from 11.6 per cent to 9 per cent by 2020. “There is a recognition that too many of these targets were too aggressive and maybe having too much impact on the economy,” said a government adviser.
Bankers have also been concerned that the reform efforts have focused too heavily on revenue-raising measures, such as tax increases and subsidy cuts, rather than initiatives to boost growth.
Source Credit: Financial Times
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