The Hague, 22 September -- the Saudi Embassy in the Netherlands held here tonight a reception on the occasion of the National Day of the Kingdom of Saudi Arabia.

The reception was attended by a number of senior representatives of government and public institutions and banks, members of the diplomatic corps accredited to the Netherlands and members of the business community.

H.E. Ambassador Abdullah Bin Abdulaziz Alshagrood addressed the audience and praised the strong friendly relationship between the Kingdom of Saudi Arabia and the Kingdom of the Netherlands. He explained that “The Netherlands and the Kingdom of Saudi Arabia share a long history of economic ties and strong bonds of diplomatic, scientific and cultural friendship. For example, the Saudi Hollandi Bank was the first operating bank in the Kingdom. It was founded in 1926, and it was originally known as 'The Netherlands Trading Society'.”

Further, ambassador Alshagrood told the guests that “The bilateral relations between our two friendly countries are varied and are developing on all levels: economic, political, social, educational and cultural. For a long time trade has been the driving force behind our special relationship, but now, we are witnessing growth in other areas. Our cooperation is clearly demonstrated by the number of delegations visiting our two capitals. The recent visits of Mr. Maxime Verhagen, the Dutch minister of Economic Affairs, Agriculture and Innovation, to the Kingdom of Saudi Arabia, and the visit of Dr. Khaled Alanqari, the Saudi Minister of Higher Education to the Netherlands” are good example said the ambassador.

About the plans of the Saudi Kingdom for the coming period, Ambassador Alshagrood recorded that achievements of the “Kingdom has a strong record of financial responsibility and economic diversity” and is using  its “revenues from energy exports … in development projects that benefit the Kingdom’s fast growing population.” Among others these projects include:

• 250 billion Saudi Riyal for the construction of half a million housing units across the country.

• 16 billion Saudi Riyal to build new hospitals.

• An increase in the home-building lending limit at the Real Estate Development Fund from 300,000 to 500,000 Saudi Riyal per loan without interests.

• An increase in loan limits to private hospitals from 50 to 200 million Saudi Riyal.

• launching the largest expansion of the Grand Mosque in history which will cost 80 Billion Saudi Riyals, and aims at providing safety and welfare of pilgrims coming from all over the world.

Another program will raise the salaries of public employees.

The speech of Ambassador Alshagrood was enthusiastically and positively received as he extended the invitation to the audience to explore the opportunities of the continuously developing and growing Saudi economy. H.E. said “You will be welcomed not only as business partners but also as friends.”

The central message in the government’s 2012 budget is that a new economic crisis is eminent and many difficult and uncertain years are ahead of us, the government warns. Next year inflation will remain around 2% and almost everyone will be affected by cutbacks.

Finance minister De Jager states that the effects of the previous economic crisis were almost entirely absorbed by the government and industry and the man in the street was not affected. However, those days are over, said the finance minister. The state debt has soared, spending on healthcare is booming and the new eurozone crisis threatens the treasury again.

Minister De Jager said, ‘The buffers have gone. We cannot continue to pass the bill on to the next generations.’ Analysts believe that middle income class will feel the cuts most, as child, housing and healthcare benefits are cut, and there is less money available for child care. Healthcare premiums will also rise next year, as agreed in the coalition deal.

In total the government plans to make €5.8bn-worth of spending cuts and savings next year, while spending will go up by around €1bn. New cuts will be inevitable if the Greece crisis continues, De Jager said.