New Saudi King Salman is showering his country with $32 billion in gifts

(Image credit: Steve Holland/G20 Australia via Getty Images)

Even with the sharp drop in oil prices, Saudi Arabia isn't embracing austerity. New King Salman, as a goodwill gesture after his coronation, announced plans to hand out billions of dollars in cash to Saudi citizens. "It is party time for Saudi Arabia right now," investment banker John Sfakianakis tells The New York Times, pegging the king's inaugural splurge at more than $32 billion.

The money will go toward grants to various groups and clubs, infrastructure investments, and a hefty bonus — twice a worker's salary — to all government employees, pensioners, soldiers, and stipend-receiving students, The Times reports. More than half of the 5.5 million employed Saudis work for the government. The popular show of largesse will add to Saudi Arabia's already sizable deficit, but the oil-rich kingdom has $700 billion in foreign reserves.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.