Saudi king orders payouts and bonuses to help with price rises

The king decreed front line military personnel serving in Yemen will get a bonus of nearly Dh5,000

Wage increases, fuel subsidy cuts and the introduction of VAT in Saudi Arabia is evident in the higher input costs and staff costs components, said Khatija Haque, head of MENA research at Emirates NBDShow more

Saudi Arabia's King Salman has authorised a range of bonuses and payouts for citizens, including a monthly payment of 1,000 riyals (Dh979.37) for civil servants for the coming year.

The measures are aimed at softening the impact of price rises as the government works to restructure its economy amid lower oil prices.

In a series of royal decrees issued overnight on Saturday, the king ordered a 5,000 riyal (Dh4,896) payout to military personnel serving on the front lines of the kingdom's war with Yemen, as well as a 500 riyal (Dh489) allowance for one year for retired persons and those receiving social security.

The monthly stipends of students will be boosted this year and the government will bear the cost of the new tax for some services and the purchase of a first home.