Saudi financial plans rely on high oil prices

Saudi Arabia is pushing ahead with a costly decision to pay more to public servants and cut government fees

At the same time, it will endure a drop in revenue from a 50 per cent cut in import tariffs and fees for passports, driving licences, transfers of vehicle ownership and renewal of residence permits for expatriates.

In a statement on Thursday, the Saudi Ministry of Finance said the pay rise, which took effect from the start of 2008, benefited both national and expatriate employees, starting from five per cent of the basic salary this year and rising to 10 per cent in 2009 and 15 per cent in 2010.

Emirates Business 24/7