Saudis grumble over economy despite record oil price

RIYADH, March 18 (Reuters) – Saudi Arabia is showing signs of nervousness about popular discontent over inflation, as Saudis suffer sharp price rises despite an unprecedented cash windfall from high oil prices, observers say.

Saudis saw price rises hit 7 percent in January, the highest since at least 1981, while the riyal has declined in the past year along with the U.S. dollar to which it is tightly pegged.


A January wage hike of 5 percent for government employees was met with disappointment by many ordinary Saudis, after Gulf neighbours moved more quickly to raise wages by larger amounts.

Public avenues for expressing views are limited by a ban on political parties and public protest. Internet forums have provided an outlet for people to vent their feelings.

Reuters