JEDDAH: The successive seasons of summertime beginning with Ramadan, then Eid Al-Fitr, followed by the summer vacation and again the return to school, combined with continuous rise in prices in all sectors, pose a huge strain on the Saudi family’s budget.

Those with low-incomes suffer the most. Some economists said that these successive seasons have forced some families to resort to bank loans.

Farouk Al-Khatib, professor of economics at King Abdulaziz University said the Saudi family resorts to borrowing and risks facing a financial crisis because of poor organization. “All this is the result of over consumption and waste, imitation and continuing high prices. All these factors contribute to the making of this financial crisis for the family,” he added.

He said the average spending of the Saudi household during this time of the year varies from one social class to the other. “For those with low incomes, expenditures range between SR10,000 and SR20,000, while the middle-income group may spend SR20,000-30,000. Rich families spend over SR80,000,” he said.

Osama Fulaly, an economist, said the financial crisis facing Saudi families at this time of the year is caused by the increasing expenditures and procurements. “This is why some of them tend to borrow and take loans from banks.” he added.

Another economist, Abdullah Al-Maglouth, said social occasions are some of the factors that add to the family’s spendings. “Expenditures sometimes exceed 50 percent of the family’s income. Eid and other occasions may force the family to take loans from commercial banks, which exceeded the volume of consumption financing to more than SR350 billion,” said Al-Maglouth.

Fayez Al-Ghamdi, a consumer, said the supervisory bodies should move and intervene to stop the high prices. “The authorities should put a control on such seasonal high prices which mostly affect limited-income families burdened with payments, rents, loans and installments, in addition to other needs and necessities of the family,” he added.