Kuwait's cabinet has approved economic reforms including the introduction of a 10% tax on corporate profits to narrow a budget deficit caused by low oil prices, finance minister Anas al-Saleh announced on Monday.

Mr Saleh, speaking at a news conference, did not say when the tax would be imposed. At present, most Kuwaiti firms do not pay taxes on profits, although many foreign firms do.

Earlier on Monday, Reuters reported that Saudi Arabia had told ministers to cut spending on contracts, a move also in response to dwindling oil revenues.