By Mohammed Abu Meleeh

Riyadh-Mubasher: Saudi Arabia, the world's largest oil exporter, has withdrawn SAR 245.3 billion ($65 billion) from its general reserve during the first six months of 2015.

The withdrawal is to narrow the expected budget deficit from the government spending amid falling oil prices.

The kingdom generates 90% from its revenues from oil.

The reserves declined by 27% from SAR 904 billion ($241.2 billion) at the beginning of year to SAR 659.8 billion (SAR 175.8 billion) at the end of June, its lowest since April 2010 when it reached SAR 605.8 billion.

The kingdom had endorsed the budget of this year with expenditures of SAR 860 billion ($229 billion), compared to revenues of SAR 715 billion ($191 billion), expecting a deficit of SAR 145 billion ($39 billion), or 0.5% of the gross domestic product (GDP).

However, the deficit is likely to reach SAR 400 billion on tumbling oil prices.

Oil prices declined from $115 a barrel in June 2014 to below $50 currently.

The kingdom plans to return to the bond market to raise $27 billion by the end of 2015, in order to avoid the impact of falling oil prices.

Translated by Abdul Maguid Aboshahla