Saudi Govt.'s Pre-emptive Measures

February 23, 2011

Saudi Arabia's King Abdullah returned to the kingdom on Wednesday after an extended period abroad for rest and medical treatment.

His return - which was celebrated as a public holiday - came with a rare announcement from the King that acknowledged the need for reform, and promised more money would be distributed to his subjects.

The King announced a series of royal decrees that called for reform of the country's public housing and education systems. He called for prisoners jailed due to unpaid debts to be released, and promised financial support for professional associations, writers, students and sporting clubs. And for the first time in Saudi Arabia, he announced unemployment payments, which he said will be offered to jobseekers for up to a year of unemployment.

Saudi TV said a government reshuffle will be announced on Friday. The shuffle will be a test of the King's commitment to reforms, with many in Saudi hoping to see fresh young faces joining an ageing government that is beset with health problems and an unhappy public.

Source: FT

 

 

These pre-emptive reforms may avoid contagion effect in other MENA region countries & expectedly bodes well for oil market too.

 

On the other hand, such self-reforms at this time from Saudi govt. also highlights the concern of all those Mid-east countries governments, about whom most of us thinks, relatively safe & stable