One of the richest oil producing nations of the Middle East may be in urgent need of a financial overhaul. Saudi Arabia announced that it was tripling indirect taxes on basic goods by raising them from 5% to 15%. In addition, Saudi Arabia will also be cutting spending on major projects by $26 billion as it grapples with shutdowns and low oil prices. The once famous welfare state will also see Saudi citizens losing a bonus cost-of-living allowance that had been in place since 2018. While Saudi has made attempts to diversify into other sources of revenues, it is clearly dependent substantially on oil revenues. With Brent below $30/bbl, its options are limited. Saudi is also losing revenues from the suspension of pilgrimage to Mecca and Medina. IMF has already projected recession in the GCC countries and other nations may follow Saudi Arabia on similar cuts. For example, in the Mar-20 quarter, state revenues were down 22% with the deficit reaching $9 billion. In March alone, Saudi Arabia drew down $26.8 billion from its net foreign assets. Moody’s expects Saudi foreign exchange reserves to fall below $375 billion by end of 2021. It used to be at $800 billion some five years ago.