Saudi Arabia to issue more bonds this year: finance minister

Saudi Arabia will issue bonds before the end of 2015 in order to plug up its budget deficit, finance minister, Ibrahim Al-Assaf said.

During his visit to Washington D.C. as part of King Salman’s entourage, Al-Assaf told CNBC Arabia that the kingdom is used to volatility in oil prices, and has the ability to withstand the current fluctuations.

The country is working to reduce unnecessary expenditures while focusing on major issues, like healthcare, infrastructure, and education. Some projects that haven’t yet been implemented will be postponed, he added.

Al-Assaf said the government’s investments have been managed professionally with excellent mid and long-term returns. He also defended the kingdom’s investment strategy of keeping parts of its reserves liquid.

Looking to China, he said that although commodity exporters—including Saudi Arabia— have been affected by the current economic situation, a transformation of the Chinese economy is in the long-term interests of the kingdom.