Editing Economy of Saudi Arabia (section)

===Private sector growth===
In 2018, the imposition of a 5% [[value-added tax]] (VAT) brought private-sector growth to a halt. [[Consumer spending]] was also restrained after a sharp increase in prices for energy, electricity, and water earlier in 2018. The kingdom witnessed a mass departure of around 750,000 foreign workers after imposing new government levies on ex-pat workers. The government is also forcing small-business owners to hire Saudi nationals at comparatively higher wages than foreign workers. Gaining money from large, direct foreign investments is also not working in favor of the government. Rich Saudis are reluctant to invest within the kingdom due to the fear of triggering government scrutiny.<ref>{{cite news|url=https://www.wsj.com/articles/rising-oil-prices-are-bad-news-for-saudi-arabia-1537915829|title=Rising Oil Prices Are Bad News for Saudi Arabia|newspaper=The Wall Street Journal|access-date=25 September 2018|archive-date=4 December 2018|archive-url=https://web.archive.org/web/20181204033505/https://www.wsj.com/articles/rising-oil-prices-are-bad-news-for-saudi-arabia-1537915829|url-status=live}}</ref>

On 11 May 2020, the government announced that it would triple the kingdom's VAT on goods and services, raising it from 5% to 15%.<ref>{{cite web |url=https://cxm.co.uk/saudi-arabia-triples-on-vat-to-counter-the-economic-impact-of-covid-19/ |title=Saudi Arabia Triples on VAT to Counter the Economic Impact of COVID-19 |date=12 May 2020 |publisher=Chelsea Andrew |access-date=17 May 2020 |archive-date=22 October 2020 |archive-url=https://web.archive.org/web/20201022001345/https://cxm.co.uk/saudi-arabia-triples-on-vat-to-counter-the-economic-impact-of-covid-19/ |url-status=live }}</ref> It also stated that the increase in VAT—introduced due to the country's current [[financial crisis]] due to plummeting [[oil prices]] and impact of [[COVID-19 pandemic|coronavirus]]—would also be followed by a cut in monthly allowance for state workers worth approximately $266, and financial benefits for contractors.<ref>{{cite news|url=https://www.nytimes.com/2020/05/16/world/middleeast/saudi-arabia-coronavirus-prince.html|title=Saudi Arabia's Big Dreams and Easy Living Hit a Wall|access-date=16 May 2020|website=The New York Times|date=16 May 2020|last1=Yee|first1=Vivian|archive-date=16 May 2020|archive-url=https://web.archive.org/web/20200516151022/https://www.nytimes.com/2020/05/16/world/middleeast/saudi-arabia-coronavirus-prince.html|url-status=live}}</ref> 
Aramco decreased the production of its Arab Light grade of crude oil by a significant amount{{By how much|date=March 2023}} to be shipped to Asia. The firm also cut down oil pricing for its US buyers following wavering demand for fuel due to the global relapse of the coronavirus pandemic.<ref>{{cite news |date=5 September 2020 |title=Saudis Reduce Oil Pricing in Sign Demand Recovery Struggling |newspaper=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2020-09-05/saudis-reduce-oil-pricing-in-sign-demand-recovery-is-struggling |url-status=live |url-access=registration |access-date=5 September 2020 |archive-url=https://web.archive.org/web/20200906112519/https://www.bloomberg.com/news/articles/2020-09-05/saudis-reduce-oil-pricing-in-sign-demand-recovery-is-struggling |archive-date=6 September 2020}}</ref>

According to the [[General Authority for Statistics (Saudi Arabia)|General Authority for Statistics]], Saudi Arabia's inflation accelerated to 6.2% in August 2020, as compared to the same month last year. The report states that the annual inflation rate increased from only 0.5% (in June) to 6.1% (in July), before the increase of VAT to 15% from 5% was introduced, effective from 1 July 2020.<ref>{{cite web|url=https://www.stats.gov.sa/sites/default/files/CPI-August%202020-En-.pdf|title=Consumer Prices up 6.2% in August2020|access-date=7 August 2020|website=General Authority for Statistics(GASTAT)|archive-date=21 October 2020|archive-url=https://web.archive.org/web/20201021161720/https://www.stats.gov.sa/sites/default/files/CPI-August%202020-En-.pdf|url-status=live}}</ref>