The International Monetary Fund (IMF) said it was encouraged by the efforts of Saudi Arabia and other Gulf Arab oil exporters to repair damage to their state finances as low crude prices slash export revenues. "I do see in a number of countries action to address the budget deficit," Masood Ahmed, director of the IMF's Middle East and central Asia department, said in an interview. "That gives us encouragement and comfort." He was speaking hours before Saudi Arabia's government was due to announce on Monday a sweeping plan to ensure its economy could survive an era of cheap oil, including spending cuts, tax rises and policies to expand the private sector. Ahmed said that judging from details of the Saudi plan revealed so far, it appeared "ambitious and comprehensive". The scale of the plan "measures up to the challenge facing the economy", he said. Six months ago the IMF warned that budget reforms being considered by most of the Middle East's oil exporters were likely to be inadequate, and that countries risked running through their financial reserves. "Apart from Kuwait, Qatar, and the United Arab Emirates, under current policies, countries would run out of buffers in less than five years because of large fiscal deficits," the IMF said in a report at that time. Saudi Arabia said Monday it would create the world's largest wealth fund and sell shares in state energy giant Aramco as it unveiled a vast plan to transform its oil-dependent economy. The announcement of the long-term reform program, dubbed "Saudi Vision 2030", marks the beginning of a plan to move Saudi Arabia beyond oil, the backbone of its economy for decades, amid a steep fall in prices. Deputy Crown Prince Mohammed Bin Salman, said that if it works Saudi Arabia "can live without oil by 2020". Saudi Arabia will sell "less than five percent" of state oil giant Aramco, he said. Saudi Arabia will sell "less than five percent" of state oil giant Aramco, the prince noted. — Reuters
