JEDDAH: Saudi Arabia on Thursday unveiled a bold budget statement that outlines plans to increase spending in 2017 as well as measures designed to drastically cut the deficit.
The fiscal deficit is “now manageable” and is forecast at SR198 billion ($53 billion) next year, moving in the right direction as part of an aim to eliminate it altogether by 2020.
That is a decline of one third from the 2016 budget deficit of SR297 billion, itself 9 percent lower than originally forecast, and far below the high of SR366 billion seen in 2015, in the immediate fallout of the oil price crash.
King Salman approved the general budget for 2017 in a session of the Cabinet.
He underscored that the budget announcement comes amid economically volatile situations suffered by most states.
“Our economy is firm and it has sufficient strength to cope with the current economic and financial challenges and this is the result of the prudent fiscal policies taken by the state,” he said.
“We are determined to strengthen the elements of our national economy, where we adopted Saudi Vision 2030 and its programs according to a comprehensive reform plan that can transfer the Kingdom to broader and more comprehensive horizons to meet the challenges and strengthen its position in the global economy.”
The budget documents showed that the government had been able to finance the deficit by drawing from reserves and surpluses, in addition to borrowing SR200.1 billion on international debt markets.
The Saudi budget for 2017 reiterated the Kingdom’s aim to eliminate the fiscal deficit altogether by 2020. This is in line with the Kingdom’s Vision 2030 and related programs, including the National Transformation Plan.
The government plans to phase out its costly subsidies on energy, although low-income citizens will receive “direct cash support” to help them manage.
It will also introduce “minimal” fees on foreigners gradually up to 2020, the Saudi Finance Minister Mohammed Al-Jadaan told reporters in Riyadh.
“There are two kinds of fees, the first is according to the number of family members an expat has in return for utilities used… this minimal amount will increase gradually every year,” the minister said in response to a question from Arab News.
“The second is already imposed on companies which employ expat workers; this will increase gradually as well until 2020.”
The fees do not apply to domestic helpers, such as drivers and cleaners, but only to expats working in commercial entities, the minister said.
The finance minister ruled out income taxes on Saudi nationals, foreigners or company revenues.
The minister added that the Saudi government had paid all outstanding dues to private sector firms as the beginning of December. Any claims submitted in the last three weeks will be paid in two months’ time.
Al-Jadaan said that the budget figures published on Thursday included the cost of the Yemen war, adding that defending the country was vital no matter what the expenditure.
“There is no price tag (not worth paying) for defending our country, borders and people,” he said.
In 2016, Saudi Arabia’s total revenues are expected to reach SR528 billion, and are forecast to rise to SR692 billion next year. Oil revenues for 2017 are estimated at SR480 billion, 46 percent higher than the 2016 projections, while non-oil revenues are estimated at SR212 billion, a 6.5 percent increase.
Expenditure for 2016 stood at SR825 billion, excluding that related to the previous year, and less than the SR840 billion originally forecast. The expenditure in 2017 is estimated at SR890 billion, an 8 percent increase over 2016.
The total national debt for 2016 was approximately SR316.5 billion, which is 12.3 percent of the projected gross domestic product (GDP) in fixed prices for 2016. Official documents showed that the national debt will not exceed 30 percent of GDP.
“Following successful debt issuances in 2016, debt issuance will continue as and when needed, subject to local and international market conditions,” the budget documents said.
“The Kingdom will seek to raise further debt at attractive rates on international markets.”
This could include diversifying the type of issued debt by issuing Shariah-compliant instruments such as sukuk inside and outside the Kingdom.
Saudi budget slashes deficit forecast by a third
Saudi budget slashes deficit forecast by a third
Camels, kabsa, and kindness: a British influencer’s unexpected adventure in Saudi Arabia
- Henry Moores walked to Riyadh from UAE ahead of Tyson Fury and Oleksandr Usyk’s rematch
- ‘I hope to strengthen my relationship with my Saudi friends,’ says Moores
RIYADH: Henry Moores, a British influencer, has made an unusual journey to Riyadh for the high-profile boxing rematch between Oleksandr Usyk and Tyson Fury, having walked across Saudi Arabia from the UAE.
Describing the trip as an opportunity he “simply couldn’t afford to miss,” Moores told Arab News: “Riyadh has long been on my radar for many years, and when the opportunity presented itself through the Fury fight, everything aligned perfectly.”
On Saturday evening the two heavyweights compete for the WBA, WBC, and WBO heavyweight titles in a much-anticipated rematch from their bout last May. It is a fight of historic significance.
The response from Moores’ followers to his Saudi adventure has been “overwhelmingly positive,” he said.
“Initially, I wasn’t sure how they would react, especially as I was venturing to a place I had never visited before. However, everyone embraced the journey and truly loved the experience.”
Despite initial apprehension, Moores found reassurance through Visit Saudi, which provided him with resources and connections across the country. “I felt completely reassured about my safety.”
Saudi Arabia is stunning. I’ve met so many incredible people, and I’ve never felt safer in a country. This definitely won’t be my last time in the Kingdom.
Henry Moores, British influencer
His experiences with Saudi hospitality have been particularly memorable. “As soon as we arrived in Saudi Arabia, we were warmly welcomed by the locals with gifts, water, and offers of help and support. All my nerves were settled instantly,” he said.
“What surprised me the most was the incredible hospitality and generosity of the people,” he added. “I was actually given more bottles of water than I had purchased, and on several occasions, I was refused the chance to pay for my meals.”
One of Moores’ highlights was being welcomed into the home of the mayor of Haradh. “We shared tea, engaging conversation, and a delicious serving of kabsa,” he said.
His adventure also included a visit to a camel farm, an experience he recalled fondly. “We met a young man named Milfy, who was around my age, and he invited us to his camel farm. There, we had the unique experience of milking camels and drinking the milk right on the spot.”
Moores also addressed initial skepticism from some of his followers about his journey. “Those same individuals later apologized for their opinions and shared how much they’d love to visit Saudi Arabia now. I believe my content clearly showcased just how incredible Saudi Arabia is.”
His passion for hiking and walking, which he attributes to his mother’s influence during his childhood, was a significant part of his trip. “Reaching the heart of the Kingdom feels like a dream come true — something I never imagined I’d experience,” he said, adding that his first impressions were of a “beautiful, modern city” that captivated him.
Looking forward, Moores expressed eagerness to explore more of Saudi Arabia, particularly Diriyah, local cuisines, and Boulevard World.
He praised Visit Saudi for their support in logistics and translation. “Visit Saudi played a crucial role in connecting me, providing translation services, and facilitating the logistics of bringing a team, cameras, and a support car to make this trip possible,” he noted.
Moores also stated his desire to return. “Saudi Arabia is stunning. I’ve met so many incredible people, and I’ve never felt safer in a country. This definitely won’t be my last time in the Kingdom.
“I hope to strengthen my relationship with my Saudi friends and continue collaborating in the future, as I’m already looking forward to returning.”
Saudi farmers sow seeds of sustainability in Najran’s fertile soil
- The ministry’s involvement and support is pivotal for agricultural initiatives in Najran, providing farmers with marketing help, technical advice, and promoting organic farming practices to ensure the production of safe, high-quality food
RIYADH: The agricultural landscape of the Najran region, historically a cultural and economic anchor, now stands at the forefront of Saudi Arabia’s push for food security, environmental stewardship, and economic vitality, according to a report from the Saudi Press Agency published on Saturday.
“Blessed with fertile land, a temperate climate, and diverse topography like mountainous terrain and extensive plains, Najran is a year-round agricultural hub,” the SPA stated.
Farmers in Najran cultivate crops including citrus fruits, wheat varieties such as Al-Samraa, samma, and zarai, and a range of dates including bayadh, mawakil, barhi, khalas, and rutab.
The region also yields tomatoes, cucumbers, eggplants, zucchini, beans, onions, and various leafy greens.
FASTFACT
The Ministry of Environment, Water, and Agriculture’s provides farmers with marketing help, technical advice, and promotes organic farming practices to ensure the production of safe, high-quality food.
Through the use of innovative modern agricultural practices, local farmers have “effectively contributed to producing healthy, safe food free from pesticides and chemical fertilizers,” according to the SPA.
Hamad Al-Abbas has been an organic famer for the past six years. His farm specializes in crops strawberries and stevia, the latter harvested thrice yearly.
A standout initiative in the region is the coffee cultivation project. Ali Dhafer Al-Harith, who heads the Regional Cooperative Coffee Association, told the SPA that his passion for farming led to experimenting with coffee.
He embarked on the venture in 2022 with 4,000 seedlings. Today, the project has grown to encompass 80 farms with roughly 100,000 coffee trees, aged between three to six years, nurturing varieties including khoulani, adeni, dawairi, tuffahi, and the region-specific taisani.
Coffee planting continues year-round, except during July and August, with flowering in March and harvesting in October, he explained.
The association plays a vital role in supporting coffee farms, offering workshops in collaboration with the Ministry of Environment, Water, and Agriculture, and handling post-harvest logistics including processing, packaging, and marketing operations.
The ministry’s involvement and support is pivotal for agricultural initiatives in Najran, providing farmers with marketing help, technical advice, and promoting organic farming practices to ensure the production of safe, high-quality food, the SPA reported.
Mureih bin Sharea Al-Shahrani, the ministry’s regional director, explained that the ministry’s support system includes helping famers cultivate local trees and rare plants, as well as “various educational programs and workshops,” through which the ministry aims to “spread awareness and expertise in sustainable agriculture.”
More than 12m people visit Riyadh Season
- The opening of the Courchevel Zone in Boulevard World has allowed visitors to enjoy a unique winter experience
RIYADH: Turki Alalshikh, chairman of the General Entertainment Authority, said that more than 12 million people have attended Riyadh Season so far this year.
The diverse range of offerings at Riyadh Season, which began in October and lasts to March 2025, continues to captivate audiences.
Recent additions, including The Groves and Souq Al-Awaleen, have further enhanced the visitor experience.
The opening of the Courchevel Zone in Boulevard World has allowed visitors to enjoy a unique winter experience.
The anticipated Boxing Week, featuring the historic rematch between Oleksandr Usyk and Tyson Fury, attracted a significant global audience, adding a thrilling dimension to the season.
A collaborative effort with SAUDIA Group led to the recent launch of the Boulevard Runway zone, which offers a unique blend of aviation and entertainment.
Muslim World League chief meets Pope Francis
- They discussed topics of mutual cooperation and common interest
ROME: Dr. Mohammed bin Abdulkarim Al-Issa, secretary-general of the Muslim World League, met Pope Francis, head of the Catholic Church, in the Pope’s Vatican office recently.
During the meeting, they discussed topics of mutual cooperation and common interest, the Muslim World League wrote on X on Saturday.
The CEO of the league in the US and UK, Muath Alamri, wrote on X: “This meeting serves as an excellent example of religious diplomacy. Faith leaders should collaborate more effectively to promote understanding and tolerance among communities.”
20,159 violators of residency, labor laws arrested in Saudi Arabia
- Seventeen people involved in transporting, sheltering and employing violators were arrested. A total of 29,540 expatriates are currently undergoing procedures for enforcing regulations
RIYADH: The Saudi Interior Ministry conducted inspection campaigns in the Kingdom between Dec. 12-18 to ensure compliance with residency, labor and border security laws.
During this period, 20,159 violations were recorded, including 11,302 for residency violations, 5,652 for border security violations, and 3,205 for labor law violations.
A total of 1,861 individuals were arrested attempting to cross the border into the Kingdom illegally, of whom 33 percent were Yemenis, 65 percent Ethiopians, and two percent from other nationalities; 112 people were arrested for attempting to leave the Kingdom illegally.
Seventeen people involved in transporting, sheltering and employing violators were arrested. A total of 29,540 expatriates are currently undergoing procedures for enforcing regulations.
A total of 20,337 people were detained for violating laws and instructed to contact their countries’ embassies or consulates to obtain proper travel documentation; 3,425 were told to make booking arrangements for their departure, and 9,461 were repatriated.
