Saudi King's gift: Restored financial allowances for government employees and military personnel

It's also planning what could be the world's biggest initial public offering when it sells shares in oil giant Saudi Arabian Oil Co., also known as Saudi Aramco.

Riyadh opposes the now outlawed Muslim Brotherhood to which Morsi belongs.

Prince Khalid bin Salman has been named as Saudi Arabia's new ambassador to the U.S. replacing Prince Abdullah bin Faisal bin Turki, according to Saudi Press Agency (SPA).

During leaders' meeting in Jordan, they discussed bilateral relations and stressed the necessity of improving them. Even after the government further eased the requirements to access the market previous year, foreigners hold less than 5 percent of the total market capitalization.

Two months of salaries will be paid as an allowance to the military and security personnel fighting in Yemen.

The new ambassador is an F-15 pilot who received USA training and carried out air strikes against the Islamic State (IS) militant group in Syria.

Alsheikh and other key officials highlighted trends pointing to economic recovery. Essam bin Saeed replaces him.

More news: State of the Air

The army is helping to defend Saudi Arabia's southern border from rebel incursions but analysts say that, in Yemen itself, coalition troops from the United Arab Emirates have the most prominence in ground operations being conducted with local forces.

"The royal order returns all allowances, financial benefits, and bonuses to civil servants and military staff", the Arab News report said, citing the decree.

Several new governors were also appointed on Saturday Prince Abdulaziz bin Saad to be in charge of Hail province and Prince Faisal bin Khalid bin Sultan charged to lead the Northern Border region of Saudi Arabia.

The salaries of other civil servants were frozen past year and benefits curbed, while the government cut subsidies and delayed major projects.

King Salman in his decree also fired his civil service minister Khaled al-Araj, information minister Adel al-Turaifi and technology minister Mohammed al-Suwaiyel.

Prince Khaled will be replacing Prince Abdullah Al Saud, who served in the post for just 18 months.

  • Adam Floyd