King Abdullah, Saudi Arabia's new ruler, yesterday ordered a 15 per cent increase in public salaries, a move underlining the government's expectation of continuing strength in oil prices.

The decision, issued in a royal decree, marked the first across-the-board shift in the pay scale in more than two decades. It came only weeks after King Abdullah took over the reins of power of the world's largest oil producer, following the death of his brother Fahd.