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

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.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up