The general index of Saudi stocks fell sharply in early trading after the kingdom said it would increase the value-added tax to three times as much and suspend the cost of living for state employees in order to strengthen its financial conditions, according to Reuters.
The index fell about 2.8%. The losses included other major markets in the Gulf as well, with Dubai falling 2.3%.
The austerity measures come at a time when the world’s largest oil exporter is suffering the repercussions of a collapse in crude prices, while responding to the outbreak of the emerging Corona virus.