By BBC Business, December 30, 2015
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Saudi Arabia’s stock market has fallen sharply after it announced public spending cuts and rises in tax, fuel and energy prices in 2016.
The country’s main stock index fell 3% in the opening 15 minutes of trade with petrochemical firms worst hit.
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It is the largest member of the Opec oil-producing cartel and has refused to cut output in order to raise prices in an attempt to put other producers – mainly US shale oil companies – out of business.
Saudi thinks it can withstand low oil prices for longer than US producers, many of which are small, heavily-indebted firms.
