Saudi Arabia’s budget for 2018 demonstrates the government’s great optimism for its economic diversification and expansion plans, overseen by Crown Prince Mohammed bin Salman, the architect of Vision 2030.
That was the message from economy minister Mohammad Al Tuwaijri, who told a news conference in Riyadh that the country was moving to “a more optimistic scenario” in its fiscal planning.
“We’re very satisfied with what happened in 2017, and we’ll continue on this journey,” he declared.
Unveiling its largest ever budget on Tuesday, the kingdom projected a return to growth next year amid efforts to lift an economy affected by lower oil revenues and fiscal tightening during 2017.
GDP, which rose 1.7 per cent last year, is expected to shrink by 0.5 per cent in 2017 but grow by 2.7 per cent in 2018 and 2019.
Riyadh plans to increase spending to a record 978 billion riyals in 2018, the finance ministry said. That is up from 926 billion riyals this year.
Next year’s deficit is forecast to fall to 195 billion riyals, or 7.3 per cent of GDP, compared with a shortfall of 230 billion riyals (8.9 per cent of GDP) in 2017.
“The expansionary 2018 budget includes a complete set of new development initiatives that aim to create financial and economic stability that was outlined in Vision 2030,” the crown prince said.
“About 50 percent of the new budget will be financed from non-oil sources,” he added.
Analysts and commentators welcomed the announcements as the kingdom prepares for the post-oil era.
“This new budget shows that the recession is over as the government undertakes major reform measures,” Khalid Ashaerah, a private business consultant in Riyadh, told CNN. “The focus now will be on services and supporting the private sector to increase job growth.”
Monica Malik, chief economist at Abu Dhabi Commercial Bank, said Riyadh needed to shift policy towards faster growth to support long-term reforms designed to reduce the economy's reliance on oil exports.
“They are balancing fiscal consolidation required by rating agencies and international investors - they can't have a blowout budget - with the domestic need to show progress with the economic transformation plan, and boost the feel-good factor with stronger growth,” she said.
Saudi Arabia is implementing an economic overhaul plan and various reforms under the 2020 National Transformation Programme and its over-arching Vision 2030 agenda to help wean the country off oil income and create new revenue streams.
The Arab world’s biggest economy intends to continue with an expansionary budget for 2019 with spending projections of 1 trillion riyals, with a fiscal deficit representing 5.9 per cent of GDP. For 2020, the kingdom is projecting a 1.05 trillion riyals budget with a fiscal deficit of 4.9 per cent of GDP.
Government revenue is forecast to rise 12.5 per cent to 783bn riyals next year from 696bn riyals in 2017. Oil revenue is projected to rise 11.8 per cent to 492bn riyals from 440bn riyals in 2017, while non-oil revenue will grow 13.7 per cent to 291bn riyals.
The government has pushed back its deadline for a balanced budget to 2023 from 2020, giving the economy time to resume growth, the finance ministry said.
Hettish Karmani, head of research at Muscat based U-Capital, said: “To steer the economy to a new path, they have pushed for expansionary budget and put the austerity on hold.”
He continued: “It is a positive sign for the markets as well and we should see good momentum in the equity markets [on Wednesday] morning.”
Signs%20of%20%20%20%20%20%20%20heat%20stroke
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Last 10 NBA champions
2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%3Cbr%3E%3C%2Fp%3E%0A
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
INDIA'S%20TOP%20INFLUENCERS
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The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”