King Salman reverses civil service, military pay cuts

Saudi Arabia’s King Salman issued several royal decrees Saturday restoring bonuses and allowances for public sector employees and military personnel, the official Saudi Press Agency (SPA) reported.

The bonuses – which had been cut under austerity measures amid lower oil prices in 2016 – were restored, due to higher revenue and a decline in the kingdom’s budget deficit.

King Salman also ordered payment of a two-month salary to the personnel and troops fighting in the frontlines in Yemen.

Last September, the Saudi monarch canceled bonus payments for state employees and cut ministers’ salaries to trim a budget deficit that stood at about 15 percent of gross domestic product (GDP).

Following the royal decrees, Minister of State Mohammed Alsheikh said in a statement that the reinstatement of allowances was recommended after an official review and better-than-expected budgetary performance in Q1 2017. 

“From the macroeconomic perspective, the incremental increase of public sector workers’ disposable income will help to further boost positive sentiment as domestic demand recovers,” Alsheikh added. 

Meanwhile, the kingdom also announced cabinet reshuffles and new appointments. Prince Khalid bin Salman has been appointed Saudi Arabia’s ambassador to the United States, while Prince Abdulaziz bin Salman was named the kingdom’s new minister of state for energy affairs.

Saudi Minister of State for Civil Service Khaled Al Araj was removed from his post and is set to be investigated. Essam bin Saeed replaces him.

Abdullah al-Swaha was named the Minister of Communication and Information Technology in place of Mohamed bin Ibrahim Al Suwaiyel.

Awad Al-Awwad was appointed Information Minister, replacing Adel Al-Turaifi. 

The commander of the land forces was replaced by Prince Fahd bin Turki, while Ibrahim al-Omar was named governor of the Saudi Arabian General Investment Authority (SAGIA). 

Several new governors were also appointed with Prince Abdulaziz bin Saad in charge of the Hail province and Prince Faisal bin Khalid bin Sultan charged to lead the Northern Border Region.

A national security center was established under the royal court.