Coronavirus crisis: wave of austerity measures in the Gulf countries

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While oil is at historically low rates and the coronavirus is blocking commercial activity, Saudi Arabia and other petro-monarchies in the region are taking sometimes drastic measures to deal with austerity.

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Saudi Arabia allows companies in its private sector to cut their employees' wages by 40%. Government measures in Riyadh are also opening the door to layoffs. After six months of lower wages, if the company remains in the red, it can terminate the contract of its employees.

In the Gulf, Saudi Arabia is not alone in making such decisions.
The Sultanate of Oman sets its priorities. Muscat requires public companies to replace foreign employees with nationals. As in other states in the region, many immigrants, mainly from Asia, work in Oman. They work in low-paid, low-paid jobs.

This diaspora represents half of the country's population, estimated at 4.6 million inhabitants. But the Omani finance ministry insists above all on the replacement of expatriates occupying key positions of executives and managers. The objective is to "  offer employment opportunities to qualified nationals  ".

► Also read: Coronavirus: those countries that are mobilizing to save their economy

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• Saudi Arabia
• Economy
• Coronavirus
• Oman

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