JEDDAH: Saudi Arabia’s 2017 budget and spending boost announced Thursday suggests its finances are on the road to recovery, economists said, although one forecast that austerity measures would return.
The oil price crash plunged the Kingdom’s budget into the red, recording a severe deficit of SR366 billion in 2015.
But Thursday’s budget statement suggested that situation is easing and that the deficit is “now manageable.”
Despite plans to increase spending next year, the deficit is forecast to be SR198 billion in 2017, down one third from this year’s figure.
John Sfakianakis, the director of economic research at the Gulf Research Center, based in Riyadh, said that the Kingdom’s aim to eliminate the deficit altogether by 2020 looks achievable.
“It’s a very productive growth and pro-market budget that is setting the fiscal consolidation on a very viable path of achieving its 2020 balanced target,” Sfakianakis told Arab News.
“The 2017 expenditure will help build further confidence and will help bring private investment.”
Economist Nasser Saidi said that the Kingdom’s plan to reform energy prices was driving the plan to increase spending next year.
“The increase in projected revenues and expenditure is primarily due to the energy pricing reform program as well as higher international oil prices, although this will be partially offset by the targeted allowances for those citizens who need government support,” said Saidi, a former Lebanese economic minister and former chief economist at the Dubai International Financial Center.
Saidi, who is now president of advisory Nasser Saidi & Associates, said that the greater transparency reflected in the budget was a good sign ahead of the planned initial public offering (IPO) of state oil giant Saudi Aramco.
“Importantly, the budget reflects greater transparency and disclosure by the government which will be a positive signal to investors, both local and international. This should be seen as part of a strategy of greater transparency in the preparation for the Aramco IPO,” he said. “The Saudi authorities should be commended for the greater openness and desire for accountability, as this will encourage business to engage with government.”
Saidi said that the increased expenditure forecast for this year suggests a departure from previous austerity budgets.
“This should also act as a signal to other GCC countries to taper their fiscal consolidation and turn mode to encouraging growth,” he said.
But Jason Tuvey, Middle East economist at Capital Economics, said in a research note that he expects further austerity measures in 2018.
“While austerity seems to have been put on the back-burner next year, it is likely to resume from 2018,” wrote Tuvey.
“The government repeated its desire to balance the budget by 2020, one of the key targets outlined in the Vision 2030 and National Transformation Plan. Achieving this will require fiscal policy to be tightened further, albeit modestly compared with 2015-16. A value-added tax is scheduled to be introduced next year and we suspect that the government will keep a tight rein on spending.”
Tuvey pointed out that the budget was based on a relatively conservative oil price.
“The government isn’t easing the pace of austerity due to hopes for higher oil prices following the recent OPEC deal to cut output. Indeed, the budget has been based on a conservative oil price of just over $50 (per barrel), slightly below current prices of around $55,” he wrote.
“Instead, the easing of austerity reflects the progress made with fiscal consolidation over the past couple of years. Public spending has been cut by a cumulative 25 percent over the past two years and the non-oil budget balance has improved … The public finances haven’t improved on this scale since the early 1990s, following the end of the Gulf War.”
Tuvey’s overall view was that the budget was a positive sign for Saudi Arabia’s finances next year.
“Saudi Arabia’s budget suggests that, following a significant improvement in the public finances over the past couple of years, the fiscal stance will be broadly neutral in 2017. This supports our view that the economy should embark on a gradual recovery next year,” he wrote.
Saudi budget signals economic recovery, say economists
Saudi budget signals economic recovery, say economists
Saudi Arabia’s fight to protect liver health
- ‘Take care of your liver now, and it will take care of you for life,’ deputy minister for population health tells Arab News
- Saudi Ministry of Health focuses on measures to tackle liver disease
JEDDAH: The liver plays a central role in keeping our bodies healthy. It filters toxins, supports digestion, stores energy and essential nutrients, and helps the body fight infections.
The major concern with liver diseases, however, is that they are often silent killers. The progression is very gradual, and most patients experience no symptoms, leaving them unaware of their condition. This makes awareness and early detection vital.
This is a national health priority for Saudi Arabia’s Ministry of Health, which is focusing on preventive care.
Protecting liver health means preventing long-term complications and improving the quality of life for millions, contributing to the ministry’s targets to improve healthy life expectancy, in line with Vision 2030’s goal of creating a vibrant society.
In an exclusive interview following World Liver Day on Saturday, Dr. Abdullah Assiri, the deputy minister for population health, said that viral hepatitis — especially hepatitis B and C — has been a long-standing concern and is responsible for many cases of chronic liver disease, cirrhosis, and liver cancer.
He said: “In Saudi Arabia, the hepatitis C virus has caused the most cirrhosis, decompensated cirrhosis, and liver transplants.”
Hepatitis is essentially an inflammation of the liver caused by different viruses — types A, B, C, D, and E — each differing in how they spread, how severe they become, and how they are prevented.
Assiri added: “The challenge with hepatitis is that up to 95 percent of people living with the infection globally are unaware they have it, because the illness can remain silent for years.
“In terms of early warning signs, these can be quite vague, including fatigue, abdominal discomfort, or mild jaundice, but there are often no symptoms at all until the disease is advanced.”
Assiri explained that the main reason why liver conditions go undiagnosed until the later stages is that the liver is a remarkably resilient organ.
It continues to function well, even when partially damaged. Unfortunately, by the time symptoms like swelling, jaundice, or digestive issues appear, the disease may have already progressed to cirrhosis or liver failure.
He said: “Late detection can lead to serious consequences, including irreversible scarring of the liver, liver cancer, and life-threatening complications.
“That’s why we strongly recommend that people, especially those with risk factors such as obesity, diabetes, or a family history of liver disease, undergo regular check-ups and screenings.”
Lifestyle is everything when it comes to liver health. Poor diet, lack of physical activity, and smoking all put extra pressure on the liver.
Though alcohol-related liver disease is less prevalent in the Kingdom, other lifestyle factors, like unhealthy eating habits, along with viral hepatitis, play a larger role.
He said: “The good news is that the liver has an exceptional capacity to heal if given the right care. Even early-stage damage can often be reversed through lifestyle changes. I have personally witnessed patients transform their health by adopting better habits.”
As a medical professional Assiri always recommends lifestyle changes centered around four key pillars: nutrition, sleep, relaxation, and exercise. These are all vital to maintaining a healthy liver, as are hepatitis vaccinations.
At the national level the Ministry of Health is tackling liver diseases through policies that focus on prevention, early detection, infection-control practices in healthcare, and effective treatment.
Assiri said: “A major milestone in the national strategy was the introduction of direct acting antiviral medications in 2014, which marked the beginning of an ambitious nationwide effort to eliminate hepatitis C.
“Data shows that a comprehensive program combining targeted screening, aggressive treatment of around 8,000 patients per year, and strengthened prevention strategies could see this disease eliminated in Saudi Arabia by 2030 — or even earlier.
“Eliminating hepatitis C would save an estimated 3,000 Saudi lives and SR10 billion ($2.6 billion) in healthcare costs.
“Importantly, this elimination program also enables broader screening initiatives for other ‘silent killer’ diseases such as hepatitis B, diabetes, hypertension, obesity, and dyslipidemia — allowing us to implement early preventive health interventions on a national scale.”
He added: “Our progress has been substantial. We met our 80 percent treatment coverage targets in 2023, are on track to reduce mortality by 65 percent by 2025, aim to diagnose 90 percent of cases by 2026, and are working to reduce new hepatitis C infections by 80 percent by 2030.”
These metrics reflect a robust public health response, and demonstrate Saudi Arabia’s strong commitment to leading by example in regional disease control efforts.
In addition to this, Saudi Arabia continues to be a leader in medical innovation and research in the field. For example, the world’s first robotic left liver lobe transplant was performed here, demonstrating the Kingdom’s commitment to world-class liver care.
The ministry has several initiatives underway. One of the key programs is premarital screening, which tests couples for hepatitis B and C to reduce the risk of transmission and ensure early intervention.
Additionally, it is expanding community screening drives, especially for high-risk groups, and enhancing access to affordable treatment for hepatitis C. In collaboration with health centers, the ministry continues to promote hepatitis vaccinations for adults who may have missed earlier immunization.
Assiri said: “Take care of your liver now, and it will take care of you for life. The liver is the largest and one of the most vital organs in the human body, yet it often doesn’t get the attention it deserves because symptoms of disease can be silent.
“I urge everyone to lead a more active life: eat healthier, stay hydrated, sleep, and get regular check-ups, especially if you have risk factors like diabetes or obesity.
“Get vaccinated, and remember that small changes in your daily routine can make a big difference for your liver and your overall health.”
Saudi deputy minister receives French official
- They discussed prominent developments on the regional and international front and efforts made in this regard
RIYADH: Saudi Deputy Minister of Foreign Affairs Waleed Elkhereiji received vice chairman of the foreign affairs, defense and armed forces committee of the French Senate and chairman of the France-GCC Friendship Group, Olivier Cadec, in Riyadh.
During the meeting, they discussed bilateral relations and ways to develop them, the Foreign Ministry said in a post on X on Sunday.
They also discussed prominent developments on the regional and international front and efforts made in this regard.
France’s ambassador to the Kingdom, Patrick Maisonnave, was among the officials present at the meeting.
Environmental Week highlights Saudi Arabia’s sustainability vision
- New national index aims to monitor Kingdom’s environmental health, guide policy decisions
RIYADH: Saudi Arabia’s Ministry of Environment, Water and Agriculture launched Saudi Environment Week on Sunday, themed “Our Environment is a Treasure,” to showcase the Kingdom’s efforts in ecosystem protection and sustainable development.
A highlight was the debut of the National Environmental Performance Index, a strategic tool to monitor environmental progress and guide policy.
The event, inaugurated by Minister Abdulrahman Al-Fadhli in Riyadh, brings together government agencies, businesses, nonprofits, and local communities to promote eco-friendly practices and collective responsibility.
Minister of State for Foreign Affairs and Climate Envoy Adel Al-Jubeir also attended, with the event featuring environmental presentations, agreement signings, and children’s performances to encourage positive environmental behavior.
Activities include nationwide exhibitions, workshops on biodiversity and renewable energy, and forums for green innovations.
The new index, which Al-Fadhli described as essential for informed decision-making, will track environmental metrics like air quality, water conservation, and biodiversity.
It aims to align national development with ecological priorities, reinforcing Saudi Arabia’s commitment to sustainable growth.
Al-Fadhli stressed the Kingdom’s leadership in sustainability, prioritizing natural resource protection and societal responsibility. He said that the index ensures accountability and progress as the country builds a greener future.
Al-Fadhli toured the exhibition, featuring sections on vegetation cover, desertification control, biodiversity, waste management, meteorology, and environmental compliance.
The exhibition also includes workshops highlighting Saudi Arabia’s role in fostering environmental cooperation, raising awareness, encouraging private sector investments in sustainable projects, and advancing technology.
The ministry emphasized that the newly introduced index serves as a nationwide monitoring tool, developed in collaboration with the UN Environment Programme.
It is designed to align with government bodies, environmental organizations, and national centers, ensuring cohesion with Saudi Arabia’s ecological priorities.
Key goals include evaluating environmental health, identifying change drivers, and establishing an early detection system for sustainability challenges and progress.
By tracking progress toward environmental targets, the ministry noted that the index identifies gaps for urgent action, enabling data-driven policy adjustments.
Phase 1 focuses on five core areas linked to the National Environment Strategy and Saudi Vision 2030: wildlife conservation, green space expansion, waste management efficiency, pollution levels in air, soil, and water, and weather forecasting accuracy.
Phase 2 will address emerging priorities, such as climate change metrics, reflecting their importance in long-term environmental planning.
The ministry stressed that the index will provide policymakers with actionable insights, driving improvements in ecological resilience, public health, and quality of life for Saudi citizens.
The National Fisheries Development Center has joined the celebrations of Saudi Environment Week.
Riyadh Al-Fageeh, director general of the center, said: “Our participation highlights the importance of preserving the environment, raising awareness, and strengthening quality of life goals. We aim to emphasize the role of institutions and individuals in maintaining ecological balance, aligned with Vision 2030.”
He added: “Saudi Environment Week reaffirms the Kingdom’s commitment to protecting natural resources and leading regional efforts in sustainability. We encourage all citizens and residents to actively participate and contribute to a cleaner, greener future.”
Calligraphy captivates Arabic speakers, non-speakers alike, say enthusiasts
- Traditional script is universal language appreciated for artistry, even if not understood
- New fonts to be used by individuals, organizations in formal settings
RIYADH: Arabic calligraphy occupies a global artistic status that captivates Arabic speakers and non-speakers alike, enthusiasts have told Arab News.
The Ministry of Culture last week introduced two fonts based on Arabic calligraphy that are intended to be used by individuals and organizations in formal settings and for artistic works: Al-Awwal and Saudi.
Abdulrahman Al-Shahed, a founding member of the Saudi Arabic Calligraphy Association, told Arab News that the introduction of the fonts was “a welcome step that contributes to renewing the presence of Arabic calligraphy in digital and contemporary contexts, without separating it from its spiritual and aesthetic roots.”
He described the introduction of the fonts as “a call to rediscover calligraphy as a living identity.”
Arabic calligraphy “amazes viewers with its abstract beauty and contemplative spirit,” Al-Shahed said.
He noted that “many non-Arabs don’t read the letters, but they feel them and their beauty,” adding that Arabic calligraphy was consequently a universal visual language.
It has been evolving for more than 1,400 years, and each generation adds its own influence to the artform, expressing its own spirit and time, he said.
Abdul Adeem Al-Shali, a member of the Fine Arts Group in Qatif, told Arab News that “there is a growing interest among a large segment of non-Arabic speakers in the Arabic language and its letters and words.”
He added: “This interest demonstrates the magic of the Arabic letter and its appeal to the eye of the average recipient, let alone someone with artistic awareness.”
Many foreigners have masterfully drawn calligraphy. The American calligrapher Mohamed Zakariya, who converted to Islam and learned calligraphy in Istanbul, gained widespread fame, for example.
He held numerous calligraphy exhibitions in America and other Western countries, receiving praise from those interested in the art, said Al-Shali.
The arts enthusiast is optimistic about the future of Arabic calligraphy and urged those in charge of art colleges, calligraphy institutes, and Arabic language colleges at universities to “preserve this great heritage and teach it to current generations with great care.”
Prince Badr bin Abdullah bin Farhan, the minister of culture, said that the new typefaces were a tribute to the Kingdom’s rich cultural and artistic heritage, his ministry adding that they were based on historic “inscriptions and Qur’anic manuscripts.”
The design of Al-Awwal highlights the spirit of calligraphy in ancient inscriptions in the Arabian Peninsula.
The Saudi takes into account the artistic principles of the Al-Awwal script and makes it more contemporary.
A group of local and international experts was responsible for their design, with support from the Saudi Authority for Intellectual Property, the King Abdulaziz Foundation for Research and Archives, and the Prince Mohammed bin Salman Global Center for Arabic Calligraphy Initiative.
Arabic calligraphy originated in the Arabian Peninsula and was influenced by the cultural and political conditions in the region and ancient rock art from pre-Islamic civilizations and languages. It spread with the migration of Arabs during the Islamic expansion.
The new typefaces “reflect the historical depth of the Kingdom of Saudi Arabia, which is considered the cradle of ancient human civilizations and the home of various calligraphy and inscriptions, ranging from Musnad, Nabataean, and Thamudic,” the Ministry of Culture said, referencing some of the ancient civilizations from the peninsula.
Saudi project clears 1,050 Houthi mines in Yemen
RIYADH: Members of Saudi Arabia’s Project Masam removed 1,050 explosive devices from various regions of Yemen last week.
The total included 1,020 unexploded ordnances, 24 anti-tank mines, three anti-personnel mines and three explosive devices, according to a recent report.
Ousama Al-Gosaibi, the initiative’s managing director, said a total of 488,656 mines had been cleared since its inception in 2018.
The explosives were planted indiscriminately and posed a threat to civilians, including children, women and the elderly.
The demining operations took place in Marib, Aden, Jouf, Shabwa, Taiz, Hodeidah, Lahij, Sanaa, Al-Bayda, Al-Dhale and Saada.
The initiative trains local demining engineers and provides them with modern equipment. It also offers support to Yemenis injured by the devices.
Teams are tasked with clearing villages, roads and schools to facilitate safe movement for civilians and the delivery of humanitarian aid.
