By: Mohamed Idris

Riyadh – Mubasher: The Saudi decision of reducing the ministers' wages and suspending the raises will have an impact on the different sectors, such as the banks, real estate and mainly retail sectors.

Technical analysts noted that the decision came within the pre-announced measures of the restructuring of the governmental sector in the National Transform Programme.

The decision will have a negative impact on the individuals, especially who have commitments and bank loans that depend on their salaries, top official at Adeem Capital, Mohamed Al Sweed, said.

He added that raises reached SAR 80 billion, while salaries reached SAR 240 billion in 2015, which are big digits.

The analyst expected that the step will lead to shrinkage in consumer loans.

Investment and saving will be also affected in the real estate sector, which will have an impact on the real estate prices inside and outside the urban boundary.

On the other hand, the move will have a positive impact on the expenses in the budget; as it will reduce the difference between the actual and estimated budgets during 2016.

Translated by: Sara Ghali