Salman vows to create jobs for young Saudis

AgenciesRiyadhSaudi Arabia’s King Salman said he would diversify the economy and create jobs for young Saudis in his first big speech since taking power on January 23. His speech, carried on state television, focused on the need to create private sector jobs for young Saudis, a main policy goal for many years as Riyadh strives to meet a looming demographic challenge while controlling public spending. Addressing the chaos around the region, he said no one would be allowed to tamper with Saudi Arabia’s security or stability. He said Saudi foreign policy would be committed to the teachings of Islam and spoke of a move towards greater Arab and Islamic unity to face shared threats, as well as a continued focus on working with other countries against terrorism. He also pledged to maintain the kingdom’s Sharia Islamic law, emphasising its central place in the kingdom. King Salman also reassured Saudis about lower oil prices, noting the historically high revenues of recent years and saying the government would reduce the impact on development projects and continue to explore for oil and gas reserves. Over the second half of last year the global price of crude oil dropped by about half, from above $100 a barrel. Yet the kingdom in December announced a 2015 budget that included a slight rise in spending to $229.3bn with a projected fall in revenue to $190.7bn. Those numbers leave the country with its first budget deficit since 2011. Saudi Arabia is the Arab world’s largest economy and much of its spending is on health, education and social services as well as infrastructure. Officials have said the kingdom’s reserves, estimated at $750bn, enable it to withstand the global crude price drop. Saudi Arabia is the world’s biggest crude exporter and oil makes up about 90% of government revenue.Addressing himself to young Saudis of both sexes, he said the state would do all it could to help develop their education, sending them to prestigious universities, to help them get jobs in either the public or private sector. King Salman added that he had directed the government to review its processes to help eradicate corruption, a source of dissatisfaction among many Saudis, alongside concerns about expensive housing and joblessness.Salman delivered his wide-ranging palace address in front of Crown Prince Moqren, Deputy Crown Prince Mohamed bin Nayef, provincial governors, the top cleric Grand Mufti Sheikh Abdul Aziz al-Sheikh, other religious leaders, the Shura Council which advises the king, military officers and citizens.