• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 22 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 6 days Energy Armageddon
  • 4 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 2 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 2 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 21 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days Goldman Betting on Cryptocurrencies
  • 6 days Сryptocurrency predictions
  • 11 days Putin and Xi Bet on the Global South
Windfall Tax Puts Shell’s $30B UK Investment Plan At Risk

Windfall Tax Puts Shell’s $30B UK Investment Plan At Risk

Supermajor Shell will be re-evaluating…

The Diesel Crisis Is Going Global

The Diesel Crisis Is Going Global

Diesel inventories across the globe…

Bearish Sentiment Is Building In Oil Markets Once Again

Bearish Sentiment Is Building In Oil Markets Once Again

Bearish sentiment is building in…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Saudi Arabia Set To Book Its First Budget Surplus In 10-Years As Oil Rises

Saudi Arabia expects to book its first budget surplus in close to ten years in the next financial year, coming in at 2.5 percent of gross domestic product or $24 billion (90 billion riyals).

Finance minister Mohammed bin Abdullah Al-Jadaan also said budget revenues next year will be 12.4 percent higher than this year's result.

Despite the contribution of oil to this forecast performance of the Saudi economy, the Kingdom will remain on its diversification course, Al-Jadaan also said, and it will also remain disciplined about public spending.

"We really want to make sure we totally decouple our expenditure from market volatility as that is very important for our economy and the people of Saudi Arabia," Al Jadaan said, as quoted by Bloomberg. "The last thing you want is to continue this behavior of your oil revenue increases so you spend more or reduce taxes. What we need now is to build our buffers and make sure they are able to support our plans for Vision 2030."  Related: Jittery Oil Market Could Trigger Consolidation In The Permian

"The surpluses will be used to increase government reserves, to meet the coronavirus pandemic needs, strengthen the kingdom's financial position, and raise its capabilities to face global shocks and crises," said Crown prince Mohammed bin Salman.

For this year, the ministry of finance expects GDP growth of 2.9 percent, to rise to 7.4 percent in 2022. It did not, however, say on the basis of what oil price it is making its forecasts as this is not a practice that Riyadh has, unlike, for instance, Russia.

"There was a 15.7% increase in government revenue for 2022 vs the pre-budget. I think the assumption is now for a price of over $70 per barrel with the sharp increase in oil price," the chief economist of Abu Dhabi Commercial Bank, Monica Malik, told Reuters.

"The budget's expected surplus in 2022 comes not only on the back of higher oil prices and production, but also on the back of scaling back COVID-related spending as well as continuing with transferring the investment burden to the state funds led by PIF", said the head of macroeconomic analysis at EFG Hermes, Mohamed Abu Basha.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on December 13 2021 said:
    This is very good news for the Saudi economy and furthermore it was expected with the rise of crude oil prices.

    The projections for both the global economy and global oil demand in 2022 provide optimism and confidence that oil prices will continue their surge.

    The quintessential thing for Saudi Arabia is to use part of its enhanced oil revenue to invest in projects supporting the non-oil sector and also accelerate the drive for the diversification of its economy.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News