Zarif: Saudi Economy Has Collapsed

Iran's Foreign Minister has stated that Saudi Arabia intended to deliberately lower oil prices in global markets to 'bring Iran to its knees,' but the Saudis have themselves 'fallen into borrowing.' Mohammad Javad Zarif, who was on a tour of the Asia-Pacific region, made these remarks on Sunday, March 14, in Wellington, New Zealand, during a meeting with a number of Iranians residing in the country. According to the official IRNA news agency, Mr. Zarif added that 'the Saudi regime is trying to intensify the atmosphere of threat against Iran and even lower oil prices to the extent that it brings Iran down.' Meanwhile, the Iranian Foreign Minister said, 'Fortunately, the decline in oil prices (in global markets) has reduced Iran's reliance on oil revenues from over 50% to about 33%, and in fact, the Saudi economy and its Gulf partners have collapsed and are now resorting to borrowing.' Mr. Zarif referred to recent reports published in global economic media, which indicate that the drop in oil prices has been severely detrimental to the Saudis, who are seeking foreign loans. Some economic reports claim that the Saudis, after a decade of not borrowing from abroad, are considering a request for $8 to $10 billion in loans from the United States. The Wall Street Journal also reported that the Saudis have asked foreign banks to submit proposals for providing loans to the Riyadh government so that Saudi Arabia can make necessary decisions to strengthen its foreign reserves. While the Saudis have always had massive foreign reserves, economic experts have stated that following the sharp decline in oil prices, the country is now facing a budget deficit. Despite Iran's efforts to improve relations with Saudi Arabia, the crisis in Tehran-Riyadh relations has intensified, particularly after the designation of Hezbollah as a terrorist organization by the Gulf Cooperation Council and the Arab League at Saudi Arabia's request, further darkening the atmosphere. Mr. Zarif, in the last leg of his six-stop tour, will travel from New Zealand to Australia to discuss with his Australian counterpart, Ms. Julie Bishop.