S Arabia risks going broke in 5 yrs: IMF

Saudi Arabia risks running out of financial assets in less than five years amid a drop in oil prices, the International Monetary Fund has warned.

The IMF said oil-exporting countries are facing tough choices as they brace for a $360billion fall in revenues this year.

Among the hardest hit is the world's largest oil exporter, Saudi Arabia, which generates about 90 percent of its income from the sector.

The IMF estimates the kingdom will post a budget deficit of more than 20 percent of gross domestic product this year, amounting to between $100 billion to $150 billion.

This compared to less than two percent last year, the lowest in the world.

Under current policies, Saudi Arabia "would run out of buffers in less than five years", the IMF said, adding that for the UAE, Kuwait and Qatar, however, they will last for more than 20 years.

The IMF's Middle East economic outlook report, launched on Wednesday, said reforms in Gulf Arab countries that create more jobs and diversify economies outside the oil sector are 'all the more urgent.'

Masood Ahmed, IMF director of the Middle East and Central Asia, said: "There are difficult decisions that will need to be made in terms of cutting spending.

Ahmed said the six oil-exporting countries of the Gulf Cooperation Council could gain $70 billion if they raised local energy prices to international market rates.